> Financing

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FINANCING

Win back the customer with a turnkey process

about the company

A telecommunications operator from Venezuela that provides high-speed internet services for homes and businesses. It put on pause since 2017 the first commercial relationship with FYCO, which the company maintained under a different name and activity. This client set out to expand, in 2020, its portfolio of fiber optic network services, build and synchronize its FTTH (Fiber To The Home) network, a segment that was just beginning to resonate in Venezuela. This created a new opportunity for FYCO.

"The first challenge was to rebuild trust with the client, bring it back with a turnkey process in terms of logistics and distribution of materials."

Marivi Ortega-Sales Support Partner FYCO.

The Challenge

FYCO took on the challenge of restoring the business relationship with this operator by helping it to synchronize its FTTH network in Venezuela.

For this, compliance with delivery times was key. However, the global context (with the COVID-19 pandemic first, and the war between Ukraine and Russia later) presented a complex logistics scenario: the increase in the cost of freight and raw materials was added to a constant delay in times of delivery. In 2019, for example, a shipment from China to Venezuela cost US$5,000 and took 35 days, while in 2022 it could have a value greater than US$20,000 and take up to 5 months.

strategy

Turnkey process.To restore the business relationship, FYCO offered the operator in question a turnkey service, which included financial and logistical support.

Financial support.In order to facilitate obtaining the first materials, FYCO provided financing for the acquisition of routers, which allowed the client to extend the originally planned purchases to new inputs, such as fibers and boxes, financed in periods of 6 to 12 months.

Purchase advice.When planning its first fiber optic needs, the operator requested a lower quantity than it ended up requiring. In search of a solution, FYCO Venezuela contacted its own warehouses in Panama and Costa Rica, verified inventories in search of the requested material and was thus able to cover the order. From then on, FYCO helped the client accurately estimate its future demands and added a technical team that participated in regular client advisory meetings.

Macro purchase orders.In addition to impacting the cost of freight, the price of raw materials and delivery times, the pandemic also caused a shortage of certain products, for which FYCO offered its client to generate a macro order for the materials required for 6 months. and divide the deliveries, as well as the payments, on a bimonthly basis. In this way, this client was able to have the requested stock in a timely manner and, at the same time, maintain its cash flows.

Semi-annual review, without overstock.In order to meet the changing needs of the client, FYCO established semi-annual contracts with the operator -and not annual-, which allowed avoiding overstocks and unnecessary purchases.

Air shipments.Due to the confinement in China caused by the pandemic, there were opportunities in which FYCO found it necessary to negotiate with its supplier the partial advance of lots by air, in order to avoid stock outs for its client.

Results

national deployment

FYCO's boxes were delivered on time and in good condition, allowing the customer to make a quick and error-free deployment. Today, the boxes are installed in different parts of the country, and have a greater presence in the main cities of Colombia.

Assistance and training

When the technicians began to install the boxes, the need to provide them with training to facilitate the task became clear, which was solved by FYCO Learning, an online educational platform.

More clients

After the success of this tender, FYCO began to receive calls from other operators requesting samples. At the moment, there are already four major Colombian firms interested in the boxes, and two of them already receive products from FYCO.

regional homologation

ALT boxes are offered today -and are being approved- in the 9 Latin American countries where FYCO is present.