Vetesda is a Dutch company that develops, leases, sells and manages homes and residential dwellings. Their portfolio includes about 24,000 homes representing a value of around 4.5 billion euros. Vesteda is strongly committed to sustainable development, not just about energy savings and reduced environmental impact, but also to achieve higher quality goods and better business operations.
Expense Reduction Consultants Elco Wubbe and Rob Priem contacted the company at a time when there has just been a change in management. After several meetings at Vesteda, the consultants had built trust with the CEO, CFO and COO and the project was launched. 14 cost categories were investigated, some of which were abandoned and others put on stand-by.
Starting with the categories of insurance, telecommunications, leasing costs and security was a big enough project.
Romy Hengst, Expense Reduction Analysts expert in insurance, scrutinised the insurance policies for property, business liability, management and auditors’ liability and despite Vesteda “pretty good records”, realised savings of 33%.
Obviously there was no reduction in the quality of the insurance services provided.
In the telecommunication cost category (including landlines, service numbers, mobile phones and data transfer), telecommunications expert Maarten van Overeem took into account the infrastructure to provide not only financial gains, but also more flexibility regarding contracts – a great improvement given the fact that Vesteda was undergoing organisational changes. Important saving potentials ranging from 15% to 60% were found in each sub-category, with an average of almost 40% savings for the large telecommunications budget.
As regards the car fleet – comprising of about one hundred cars - Vesteda had launched an unsuccessful tender process not long before Expense Reduction Analysts consultants were commissioned. Vesteda’s tender outcome was not surprisingly unsuccessful as the number of cars leased was considered relatively small for the market. However, as Henk Postmus simultaneously negotiates for several clients, Vesteda benefited from a scale effect which allowed 14% savings.
In the security cost category, Hans Bokma achieved 38.4% savings. This category consists of surveillance services, alarm response, control rooms and caretaker services. Despite the high savings achieved, there was no concession made to quality.
"Amongst managers, we have just started to build awareness about cost savings; we did not expect big savings. But I must admit that from the start, things came along better than expected. Expense Reduction Analysts is not looking for a quick fix - great care is given at every step, in each category. We were delighted by the fact that in certain cost categories, no savings could be achieved; this is information worth knowing for which we were not required to pay anything. The project has led to endorsement and strengthening of cost awareness.
In addition, the collaboration has been extremely pleasant. We are very satisfied, and not just about the good financial results."
Luurt van der Ploeg, CFO of Vesteda