Vendor Management Systems (VMS) Definition

What is a VMS?

VMS stands for Vendor Management Systems, software or online applications that facilitate the procurement of recruitment services between employers and the suppliers who match them with contingent labour. VMS systems usually feature supplier management, talent management, and SOW project sourcing and management.


Enterprise recruitment agencies are the most likely (but not only) businesses to conduct business through VMSes due to the high volume and lower margins for jobs placed through a VMS. They are traditionally used for temp staffing services but are occasionally used for permanent placements as well.

VMS Integration

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Frequently Asked Questions

What is VMS integration?

A VMS integration is the software or functionality that enables a firm to streamline their VMS business through their applicant tracking system. Firms use a VMS integration, also known as VMS automation, to automatically manage the VMS data instead of handling it manually.


With VMS automation, agencies can automatically load jobs directly into the ATS. As jobs enter the ATS, the right recruiters are notified so that they can start working on each order immediately. The candidate data is then sent automatically back into the VMS.  All status updates are seamlessly synced between the VMS and ATS, providing full visibility into where candidate submissions stand.

What are the benefits of VMS automation?

VMS automation helps streamline the entire workflow, improving productivity, and increasing the number of successful placements an agency can make. VMS automation:

  • Automates business processes, eliminating the time spent on manual  tasks so it can be put back into relationship building
  • Increases data integrity so everyone on the team can better understand the business and make more effective, accurate decisions.
  • Enables teams to submit and fill jobs faster, improving a team’s speed and accuracy.

    Further Resources:

    3 Reasons Why VMS Automation is a Key Part of Our Customer’s Strategy
    Automation is a key part of any business strategy, but for staffing firms that operate in the VMS space, it’s paramount for their success. Razor-thin margins, high volumes of data, and the importance of speed are all reasons why firms have turned to Bullhorn and our VMS tools to help streamline this process so they can achieve their business objectives.
    VMS: An Overlooked Opportunity for Staffing Firms in 2020?
    VMS (Vendor Management System) business is one of the most divisive—and possibly misunderstood—topics in the recruitment industry. Is VMS an actual growth opportunity for staffing firms or is it just a necessary evil of doing business with large clients? And can it actually be profitable for businesses? In many cases, the data contradicts the common perceptions. Read on for a deep dive into some of the core questions surrounding the ever-controversial topic.
    VMS Business: How to Stay Operationally Efficient
    Does just the mention of the word ‘VMS’ give you a headache? If so, you’re not alone. In fact, a recent Inavero report states that 76 percent of all staffing firms report several barriers to VMS operational efficiency. But it doesn’t have to be that way.

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