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Printing Costs |
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Photocopiers |
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Office |
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Fleet Management |
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Building Costs Management |
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Capital and Operating Expenditure |
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Labor costs |
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Software Development cost |
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ERP Development expenses |
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CRM Development expenses |
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Security |
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Operational Costs |
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Logistics & Supply Chain expenses |
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Packaging expenses |
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Freight costs |
Vanco does not own telecoms assets and is incentivised to pass on falling telecoms prices to its clients. It continually engages in competitive tendering for the underlying network infrastructure to deliver the lowest lifetime cost.
As Vanco does not own telecoms assets and does not have a vested
interest in selling incremental bandwidth, it has shared interests
with its clients. It is this position which enables Vanco
to deliver significant cost savings from Day One of its network
management contract but more importantly the lowest lifetime cost.
These cost savings will derive from Vanco&8217;s VNO relationship
with suppliers, engaging multiple carriers in competitive tendering
for the underlying network infrastructure.
Smart Purchasing
This is the ability to take advantage of all the options in the
marketplace to ensure a lowest technology cost solution at any
point in time. In essence it&8217;s all about getting the right
mix: optimizing the right technology in a package which enables
Vanco to deliver the right service level to meet clients&8217; needs
and hit that crucial price point. Smart Purchasing is built around
the combined knowledge and experience of Vanco worldwide. At a
macro level this is done annually for the whole network, and at
a micro level for every move and change within the network. The
macro level changes are made through Vanco&8217;s Active Negotiating
Process (ANP).
The principle behind ANP is very simple: infrastructure prices have a general downward trend, and Vanco believes that its clients should have access to these decreasing costs. Formally, Vanco commits to an ANP review on an annual basis and presents the report findings to the client. If the proposal is that savings can be made, incorporating cost of change, and the client is happy with this then Vanco will make the necessary changes and the costs will be adjusted accordingly.
Vanco maintains flexibility for its customers by only buying specific transmission technology on a short term contract, and is therefore able to continually assess the competitiveness of the solution and offer customers the potential to refresh the network to achieve their business goals, whether these are increased functionality and/or decreasing costs. Vanco maintains very competitive purchasing prices through a combination of multi year spend commitments (non service specific), wholesale agreements, a wide choice of supply carriers, and aggregated spend across a number of large enterprises (essentially a buying club).
Crucially, Vanco is actually incentivised to do this. Through a contractual agreement, clients retain 70% of all cost savings, and Vanco retains 30%; it is therefore in Vanco&8217;s interests to perform ANP to achieve the maximum advantage for its customers. This process ensures that Vanco&8217;s contracts are always directly in line with the market and remain competitive.
Source : Vanco
