Learn the language of the industry, gain a common understanding, communicate and measure effectively
The contingent workforce management industry has a language all its own. Managers and providers use specialized language and acronyms galore. We are using Staffing Industry Analysts’ global lexicon to promote consistency in the business.
Vendor Management System (VMS) — An Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services (temporary help as well as, in some cases, permanent placement services) as well as outside contract or contingent labor. Typical features of a VMS include order distribution, consolidated billing and significant enhancements in reporting capability over manual systems and processes.
Managed Service Provider (MSP) — A company that takes on primary responsibility for managing an organization’s contingent workforce program. Typical responsibilities of an MSP include overall program management, reporting and tracking, supplier selection and management, order distribution and often consolidated billing.
The vast majority of MSPs also provide their clients with a vendor management system (VMS) and may have a physical presence on the client’s site. An MSP may or may not be independent of a staffing supplier.