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 minutes

5 reasons why you should use a vendor management system in 2025

In 2025, a vendor management system (VMS) will be essential for companies to optimize processes, reduce costs, meet legal requirements and secure clear competitive advantages - all efficiently combined in one tool.

Published on
11.2.2025

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The economic pressure on companies is increasing: order fluctuations, rising regulatory requirements and increasing competitive pressure are forcing organizations to make their processes more efficient. A vendor management system (VMS) offers the perfect solution for managing external workers in a structured and cost-efficient manner - and ensures that companies successfully master the challenges of 2025.

1. more efficiency and better cost control

A vendor management system (VMS) automates processes such as time tracking, billing and demand management. Data analyses are used to identify potential savings and inefficient resources at an early stage. For example, expenditure can be optimized and the quality of supplier (e.g. time-to-fill) can be improved in a targeted manner.

2. legal certainty and compliance at the touch of a button

With the increasing legal requirements - in particular the German Temporary Employment Act (AÜG) - a vendor management system (VMS) is becoming indispensable. It performs automated checks on equal pay, maximum leasing periods and other compliance requirements and documents all processes in a legally compliant and traceable manner.

3. maximum transparency and control

Thanks to real-time dashboards, companies always have an overview of projects, costs and staffing provider. This facilitates data-based decisions and ensures a more agile and responsive organization.

4. flexibility for the future

A modern VMS can be seamlessly integrated into existing systems using API integrations. Thanks to cloud-based architecture, modern systems no longer require lengthy IT implementations. The software remains scalable and adapts dynamically, regardless of whether company structures change or new requirements arise.

5. clear competitive advantages

A well-implemented VMS gives companies a decisive advantage: faster processes, well-founded decisions and reduced costs. It is far more than just software - it is a strategic tool that not only helps to overcome challenges, but also opens up new opportunities for sustainable growth.

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