Glossary · Operations
What is VMS
Also called: vendor management system.
Definition
The software an MSP or enterprise client uses to distribute requisitions, collect timesheets and process agency invoices.
Applies to: US and UK · Reviewed by James Doyle
In practice
VMS platforms control your billing. Invoices raised outside the portal do not get paid, and portal timesheet cut-offs drive your real cash cycle more than the client's stated terms do.
Factor VMS fees, usually 2% to 4% of spend, into rate cards before agreeing to a programme.
Related terms
MSP
A managed service provider runs a client's contingent workforce programme and sits between the client and its supply chain of staffing agencies.
ReadDSO
Days sales outstanding: the average number of days between invoicing a client and being paid. Every extra day is cash you have to fund.
ReadCash conversion cycle
The total time between paying a contractor and collecting the matching client payment. In contract staffing it is commonly around 52 days.
Read
Put the theory to work.
Model your rates, costs and funding with the calculators built on our own 2025 data.