CAPEX and OPEX Management Strategy, Business Process Re-Engineering for SCM

Client: Helios Towers Nigeria (HTN)
Project Description: The client engaged a VTT team of telecommunications industry veterans with a collective experience of managing rollouts for 3000+ BTS sites. This team approached the CAPEX management initiative in three phases. Phase one included the following:

  • BTS Site equipment included in HTN’s scope was investigated. A target was set to achieve a cost reduction of at least 15% for these items.
  • Through information validation, scope freeze and subsequent refinements in the shape of price breakups and detailed bill of materials, VTT made comparisons with obtained benchmark pricing from the market.
  • VTT produced a CAPEX management strategy and recommendations report which provided baseline prices for target items ensuring a CAPEX reduction of 25%

This exercise was immediately followed by Phase two, which included the following:

  • Off-site procurement support to HTN’s procurement department.
  • Engaging vendors by generation and floating RFPs for selected items

Building on the previous two phases, Phase three of the exercise focused on providing cost effective designs for individual BTS site items, which provided higher efficiency while maintaining HTN’s quality standards:

  • Different modules/parameters were identified that could be designed technically to achieve significant cost reduction
  • Best design options were found and analyzed for these modules/parameters for different groups of operators per site and for the prevailing environment of Nigeria
  • HTN was presented with recommendations of new technical designs for each individual item on the identified parameters, cost reduction analysis through these designs and sample design diagrams.