Vesteda develops, leases, manages and sells property and property concepts. The property investment fund consists of approximately 27,000 properties with a value of approximately 4.5 billion euros. Vesteda attaches great value to sustainability, not only with regard to saving energy and reducing environmental stress, but also with regard to increased user quality and proper management.
Elco Wubbe and Rob Priem of Expense Reduction Analysts contacted the company just when Vesteda had changed management. After a number of consultations with the CEO, CFO and COO of Vesteda a relationship of trust was established and the project could be started. Fourteen categories were investigated, of which a number has now already been completed. The project started on a broad enough basis: insurances, telecommunications, lease costs and security.
Insurance expert Romy Hengst looked at the properties, company liability, and directors’ and supervisory directors’ insurance policies. Despite the fact that “things were pretty good” for Vesteda she managed to achieve 33% savings, whilst obviously paying considerable attention to the fact that the insurance terms and conditions had to be of a similar nature.
The telecommunications category included landlines and service numbers, mobile telephones and data lines. Telecom expert Maarten van Overeem was not only hoping to achieve a financial advantage with regard to the fixed infrastructure, but also to make contracts more flexible, which was important in view of ongoing organisational changes at Vesteda. It appeared possible to achieve substantial savings on all components: between 15 and 60%, with an average of almost 40%, on an extensive telecommunication budget.
For the vehicle fleet, consisting of approximately 100 vehicles, Vesteda had already tried an independent tender process without achieving anything, not long before Expense Reduction Analysts started on the lease contracts. This isn’t unusual seeing that the number of Vesteda vehicles amounts to a relatively small number in the lease market. As vehicle expert Henk Postmus negotiates simultaneously for several clients, he was able to obtain economies of scale that translated into 14% savings for Vestteda.
On security Hans Bokma managed to save 38.4%. This relates to surveillance services, control rooms, alarm follow-up and concierge services No concession was made regarding the quality of service in the new contracts, despite the extensive savings achieved.
Luurt van der Ploeg, CFO of Vesteda says: “We were mainly hoping to achieve some cost awareness under our managers and did not expect large savings. But I have to admit that from the first day everything exceeded our expectations. Expense Reduction Analysts is not looking for a quick hit; all steps are carefully considered, in all categories. We were pleased to see that it proved impossible to achieve savings in a number of categories and we appreciate seeing this confirmed whilst not having to pay for it. The project resulted in confirming and strengthening cost awareness within Vesteda. You would think that a large company should be able to do this itself, but Expense Reduction Analysts does it better. They know they have to keep the terms and conditions at least as favourable when changing contracts and, because they have a large client base, they are able to achieve more through their buying power. Besides all this the cooperation was extremely pleasant. We are very satisfied and not only with the good financial results.”
“Everything exceeded our expectations. We’re very satisfied and not only with the good financial results.”
Luurt van der Ploeg, CFO, Vesteda