Active Negotiating Process
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’s
interests to perform ANP to achieve the maximum advantage for its customers. This
process ensures that Vanco’s contracts are always directly in line with the market and
remain competitive.