Understanding VMS

The VMS provider manages enterprise service requests, and also takes on the role of service coordinator by routing service requests to multiple staffing suppliers. VMS providers manage the fulfillment process by maintaining work orders, time reports, and invoicing for the enterprise. VMS providers are paid for all services performed by the suppliers in their network at a rate that includes the VMS markup rate or percentage.

In order to support this business process, the concept of VMS is supported in the PeopleSoft Services Procurement product. VMS functionality is only active when you select the Enable VMS option for a Services Procurement business unit or service type. The service type level is an override to the business unit. Once you enable the VMS option, you must specify a VMS supplier and location, as well as a rate and supplier service coordinator or service team that correspond to the VMS provider in order to create VMS managed requisitions and work orders for the business unit.

Note: A service team must have a least one coordinator associated with the VMS supplier to be available for selection as a VMS team.

When the VMS provider acquires resources, an additional markup is applied on top of the supplier's rate in order to cover the VMS cost for managing the process. You define the VMS fee at the business unit level, with override available at the service type level. For individual child services, VMS fees defined at the service type overrides the VMS fees defaulting from the related multi-resource parent. The VMS fee is effective-dated, which indicates that the rate in effect at the time services are performed is the rate that is used for work order consumption and invoicing purposes.

The list below indicates the various ways in which VMS information is displayed to services coordinators, requesters, approvers, supplier service coordinator and service coordinator teams.

  • Service coordinators and provider contacts internal to the VMS can view amounts that include VMS markup fees, as well as view the breakdown between supplier rate and VMS rate, which makes up the fully loaded rate.

  • Requesters, requisition approvers, and work order approvers view amounts that include VMS markup fees, but they do not have visibility of the VMS markup amount that is included in the total amount shown unless they have been given a role associated with the SP_VMS_MSP_BREAKDOWN role action.

  • Sourcing notification routes to the supplier service coordinator or service coordinator team defined for the VMS.

    The service coordinator or team then sources the requisition to suppliers in the VMS supplier network. The VMS markup information is visible to the VMS Service Coordinators and suppliers internal to the VMS.

    Note: VMS rates are not visible to external suppliers.

  • External provider contacts view amounts that do not include VMS markup.

    VMS markup fees are included on all supplier invoices for VMS managed work orders. These invoices are generated for the VMS supplier rather than the end supplier.