Download - Cygnet power point.ppt january
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Charles Eddolls Cygnet Consultancy Ltd
I offer low cost extensive experience
From recycling to cost reductionI supply hands on support with a pragmatic approach
My purchasing competitions have average savings of over 30% Charles Eddolls
Reducing Costs Not QualityJanuary 2016
Cut Costs Not Corners January 2016
• I will help you generate additional profits
• Resolve operational problems
• Treat information in total confidence
• Reduce your purchase and operational costs
• Ensure ongoing supply relationships are excellent
• Work with your procurement and/or operations staff
Charles Eddolls - Cygnet Consultancy Ltd
A broad range of support
November 2015November 2015November 2015November 2015
January 2016
Cut Costs Not Corners January 2016
Reverse auctions
• Have produced hundreds of millions of savings
• Supplied innovative recommendations
• Reduced costs by over £100 million in a single competition
• Undertook a £2 Billion supply tender / auction
• Developed a world leading purchasing procedure using ThyssenKrupp AG supply contracts and saving them 29%
• Introduced reverse auction to HM Treasury (OGC) saving 66% in their first auction with an 80% betterment
An AuctionFrom warship refits to steel supply I:
Examples of how to increase profits
Cut Costs Not Corners January 2016
I commercially advised :
• The Ministry of Defence• OGCbuying.solutions • The Office of Government Commerce • Birmingham City Council• Tameside • The UK Hydrographic Office • Oldham Council • Cheltenham Council • The Gloucester Purchasing Partnership • Tube lines Ltd • NHS Hammersmith, • NHS The Royal Free, • NHS Newham • NHS Maidstone • NHS Bath etc
Public Private• Aramark• Balfour Beatty • BAX Global • BMW• Compass Group• DBC• European Metal Recycling• Hellman Worldwide Logistics• Holt JCB• London Taxis• Milklink• Pall Corporation• P&O• Sims Group • Thyssen Krupp Automotive etc
Cut Costs Not Corners January 2016
Some savings I created
Air filters 36% Aluminum Extrusion 12% Architects services 14% Audio & Video Cassettes 26% Audio/Visual/installations 49% Automotive Metalwork 20% Bakery Ingredients 6% BT Lines 20% Building Surveyor 14% Camp Beds 14% Cameras 10% Catering 18% CCTV service contract 43% Cheese 8% Chilled/Frozen Goods 18% Chocolate 7% Civil and Structural 13% Cleaning Cloths 54% Clinical Consumables 18% Coffee 17% Commercial Tyres 10% Compasses 27% Computer Consumables 63% Contrast Media 65% Copier Paper 8% Corrosion & Icing Inhibitor 5% Courier parcel services 22% Derv & Gas Oil exc duty 12% Diving Apparel 63%
Domestic Couriers 23% Domestic Linen 10% Desk top stationary 46% Electric Office Supplies 33% Electricity 6% European Freight 11% Frigate Refit 21% Frozen Veg 6% Fuel DERV 5% Fuel Gas Oil 5% Fuel Kerosene 21% Fuel Transportation 62% Glasses 6% Gloves and Linen 43% Hand and Cutting Tools 39% Hydraulic and Engine Oil 26% Incontinence Products 30% International Freight 32% Landlines 19% Lease 22% Lifts maintenance 25% Lorry Tyres & Services 11% Mattresses 40% Mech and Engineering 13% Mobile Phone 17% Mount 54% Oils and Lubricants 37% Operating Theatre Products
19% Parts Haulage 31%
Plastic bins 26% Pasta 36% Plasma Torch Consumables 19% Pocket Pack Tissues 62% Postage 16% Power Cables 26% PPE 37% Printer Consumables 40% Printing 47% Project Manager 16% Quantity Surveyors 13% Rehabilitation Consumable 19% Risk and Value 13% Rock Salt 24% Shirts 47% Specialist Batteries 5% Stainless Steel Sheets 9% Stationery 64% Steel 15% Steel Storage / Furniture 8% Tarpaulins 27% Temporary staff 16% Thomas Bins 14% Tissues 66% Trailer 22% Trailer Hire 16% Urology Consumables 7% Welding 45% Wound Management 15%
Charles Eddolls - Cygnet Consultancy Ltd
Cut Costs Not Corners January 2016
OGC’s First Reverse Auction
1. Who supplied & at what Cost
2. Is the specification correct
Many changes
6. Make it simple
5. Encourage Competition
4. Structure to suppliers need
3. Evaluate “Best Value” 11% more tissues freeless labour & less wastage
Packaging & order procedure
Ensure all can compete
Pre Condition the Bidders
Compare to database(assess the potential result)
I achieved savings of more than 65%
Cut Costs Not Corners January 2016
approachsupplytheotherway round…
In a supply contract
Following the tender I agreed to buy:
• At least 50 machines per year for five years with full warrantees
• With an agreed 85% buy back after year one
• We were to be paid for the buybacks on the anniversary of delivery
• We paid against a one year non-recourse promissory note
• The machines were fully maintained by the supplier
The result was:
• That all machines were replaced every year
• We had no cost of maintenance
• They cost 15% of the discounted new price paid at the end of each year
• We had total reliability at nominal costs. Charles Eddolls
Thinking “Outside-of-the-Box”
At Coopers we required over 50 new machines. So I tendered for long reach excavators with Ardennes grabs all wired for magnet use and some with magnets.
Charles Eddolls - Cygnet Consultancy Ltd
Cut Costs Not Corners January 2016
· · My transport experience ( CPC holder) enabled me to advise a blue chip client to stop unknowingly overloading vehicles that could have resulted in
prosecutions and a serious loss of their reputation
· Commercial experience enabled me to remove historic “provision cost inclusions” in contracts that had amounted to £3 Million each on at least three
separate contracts per year, year on year.
· By managing a supply contract I saved a client over 15% on his steel costs whilst retaining the same supplier.
I offer low cost access to an expert with a unique record.
Find the solution
Charles Eddolls - Cygnet Consultancy Ltd
Cut Costs Not Corners January 2016
I help clients to succeed and would be pleased to help you.
Charles EddollsTel +44 (0) 797 008 2797Tel +44 (0) 1793 752 485 www.cygnetconsultancy.com
Contact me
Email me for free information: [email protected]
Use paypal at http://dld.bz/ej2Nh
Charles Eddolls - Cygnet Consultancy Ltd