Download - Power Point.Reverse Auctions
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Glide Forwards with
Cygnet Consultancy &
The Buying Group
Reducing Cost Not Quality
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Glide Forwards with Cygnet Consultancy
Award Winning Software
“User friendly and easy to operate”
“bids to server in one second”
Developed in conjunction with
Industrial Conglomerate
ThyssenKrupp AG
Copyright © Cygnet Consultancy Ltd 2011
100% Reliability in all auctions
Genuine Savings of up to £100 million in a single event
Cut cost of Royal Navy refits
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Largest Public Sector Auction Saving
Over £100 Million on a £232 million contract (43%)
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• Biggest UK public sector reverse auction
• £100M Saving on a £232 million spend (approx 43%)
• 2,432 bids the highest on a public sector reverse auction
• Over 14 hours of continuous bidding
• Unrivaled savings performance @ £6.4 million per hour
• MoD combined its own office requirement with:
• Her Majesty’s Revenue and Customs• Home Office• Dept of Constitutional Affairs• Metropolitan Police• Foreign & Commonwealth Office• HM Treasury, • Office of Government Commerce• HM Prison Service
•
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Glide Forwards With The Buying Group
The Cygnet Buying Group
Leverage Buying
The Cygnet Buying Group
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• Cygnet invites select companies to join their buying group
• We combine supply volumes to leverage costs
• Cygnet negotiate contracts with major suppliers for goods and services
• By comparing existing prices we achieve the best deals
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Examples of clients that our consultants have helped
Acquire services - ASW Celsa Steel (UK) - Aga Rangemaster - Amaryllis Group - Aramark - ABRO Barnet Enfield and Haringey NHS - Bibby Distribution - Birmingham City Council - BMW Swindon
Pressings - Booker - The Bristol & Weston Purchasing Consortium - Buy as you view - Burton International Plc - Capital Vehicle Sales - Calumet Photographic - Chelsea & Westminster
Healthcare NHS Trust - Club Car UK - Compass Group PLC - Combat Support Equipment IPT Crown Castle - DBC Foodservice - Defence Aviation Repair Agency - Defence Catering Group Department of Health - DSCA - Environment Agency - European Metal Recycling - Faber Prest
Foreign & Commonwealth Office - Gloucestershire NHS - Grant Thornton UK LLP - Green & Kassab Ltd - Haden Building Management - Hammersmith & Royal Free - Hellman Worldwide
Logistics - HM Treasury - Hydrex Equipment - IoD - Intenda UK - J P Bealls – Kelly Holdings London Taxi International - Maidstone & Tunbridge Wells NHS Trust - Mandeville
Mayflower Vehicle Systems - Metropolitan Police - Milk Link Group - Ministry of Defence
National Grid Transco - Newham Hospital NHS Trust - Nottingham (University) - NUS Services buying.solutions - OGC - P&O - Pall Corporation – PPS - Price Trak - PSCA - Royal Hospital for
Neurodisability - RUH Bath – Schneider Electric - Servicespan - Simmsmetal UK - Tameside MBC- The Warship Support Agency Thyssen Stairlifts - ThyssenKrupp AG - ThyssenKrupp Automotive -
Trafford MBC – TransBus Dennis International Tube Lines - University of Exeter University of Oxford - UK Hydrographic Office - Whittington NHS - WSP Group etc
Glide Forwards with Cygnet Consultancy
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Glide Forwards with Cygnet Consultancy
Our Support & Advice
Copyright © Cygnet Consultancy Ltd 2011
The team provides support to enable clients to achieve their goals. Whatever the size of the problem our support will help.
Green Targets
Climate change and your carbon foot-print offer unique problems and opportunities for your procurement professionals.
We will assist you through every step to ensure you are better placed to meet your green targets.
Experience
The list is extensive so regardless of your need be assured we will be able to guide you to the most commercial result.
For a consultation contact us
+44 (0) 1793 752485www.cygnetconsultancy.com
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Contrast Media 65% Computer Consumables 63% Diving Apparel 63% Fuel Transportation 62% Bespoke Mounts 54% Audio/Visual/installations 49% Printing 47%Clothing 47% Welding 45% CCTV service contract 43% Gloves and Linen 43% Printer Consumables 40% Hand and Cutting Tools 39% Oils and Lubricants 37% PPE 37% Air filters 36%Branded Food 36% International Freight 32% Tarpaulins 27%Plastic bins 26%
Power Cables 26% Lifts maintenance 25% Domestic Couriers 23% Courier parcel services 22% Lease 22% Trailer Hire 22%BT Lines 20% Mobile Phone
17%Temporary staff 16% Trailer Hire 16% Steel 15% Architects services 14% Building Surveyor 14% Quantity Surveyors 13% Risk and Value
13% Aluminum Extrusion 12% Derv & Gas Oil exc duty 12% European Freight
11% Lorry Tyres & Services 11% Stainless Steel Sheets 9%
• Tube Lines £3.5 million on outsourced professional costs
• A food Industry World Leader 35% on the supply of branded food
• ThyssenKrupp Automotive 37% on Oil & Lubricants
• LTI 10% on steel without the need to change their supplier
• BMW tendered a supply & created good savings. We re-competed the same supply
and increased their savings by 40%
Sample Savings
Some Consultancy / Reverse Auction Results Reducing Costs with Cygnet Consultancy
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Commercial facts
Our service generates instantaneous cost reduction
Our costs are paid for out of savings so our costs are not an issue
We support from the initial OJEU / advertised tender to the auction event
Our aim is to secure incredible savings with ongoing quality of supply
Post competition supplier relationships are excellent
Your commercial information will be treated in total confidence
We understand your issues and perform to meet your needs
Commercial facts
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Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
FAQs How does our involvement affect current suppliers?
We find few problems as we explain that a good supplier has little to fear from fair competition
How do we address quality of supply?
In partnership with you. The specifications of supply and tender construction are all important
Why do you need us?
Our experience brings an extra resource and a dimension that will save you money
Will your current suppliers take part?
Yes as their prices submitted into our initial tenders become their starting price in the auction
What does this service cost?
This varies dependant on how much we do but normally after savings there are no net costs
Can we factor in cost of change?
The software is infinitely variable and can cover any need
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Answers to questions that are seldom asked!
“Will the savings you achieve make our team
look incompetent?”
No not at all
By using our services you will be seen as innovators using the latest
commercial processes and technology
By strategically using us you will obtain quick wins at no net cost
Our processes will produce beneficial changes in supplier behaviour
We will be an additional part of your team under your control
We supply a detailed and fully auditable report
Advise on how to manage “Core Drift”
Alert you to any pitfalls in future or past contracts
Advise on and deal with any supplier queries
Analysis bidders actions to understand their commercial drivers
This unique process can addresses any supply or service need
Post Competition Actions
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
We advise on compliance and have never been involved in a challenge
Our software receives bids in one second with a 100% reliability record
This process can addresses any supply or service need
A bespoke support service to clients and their suppliers
In house expertise and knowledge allows us to solve any of your issues
A challenge to the status quo with average savings of over 25%
Unique knowledge transfer and after sales support
USP’s
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Address your needs, aims and issues
Analysis current suppliers volume and pricing
Detail the contract you want
Structure a tender to suit your aspiration
Pre-qualify suppliers
Send e-tenders to your chosen suppliers
Evaluate tender returns to structure a commercial reverse auction
Replicate auction for suppliers to use one week before the event
Open auction 24 hours before event for suppliers to view
Host the event
Comprehensive support following the auction
A part of our competition input (Re Auctions)
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Testimonials
"I allocated a member from my team to work with GS toidentify areas of possible cost savings. At each stage
of the process, GS summarized their findings for approval.From the initial analysis that GS made, we agreed thatthey would focus on the product areas of safety wear,packaging, oils & lubricants and welding. GS made a
forecast at this stage of the likely cost savings."
We were very pleased with the results. The savingswere 29% of the total tender value."
Robert Soen,whilst General Manager for ThyssenKrupp Automotive
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Testimonials
"I would like to thank Group Supplies for their supportand assistance to date and I look forward to working
collaboratively with you on promoting reverse auctionsas an alternative route to acquisition in delivering real
value for our forces.
Where the auction process has been utilised within MoDit has consistently delivered results"
Grant Morris whenDirector General - Commercial (Project Delivery)
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Testimonials
"Group Supplies has developed a unique procurementprocess applicable across the whole spectrum of
procurement.
They have successfully completed an initialproject in liaison with our buyers, which produced savingsand are now involved in reviewing our activity relating to
lubrication oils. We are in the process of identifying a thirdcommodity for assessment as we develop our relationship.
The approach contrasts with traditional cost saving methodsin the depth and scope of research and culminates in aninnovative live trading floor generating cost reductions
against bespoke tenders."
David J Russell, Purchasing Manager (Indirect), Swindon Pressings Ltd a BMW Group Company
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Testimonials
"I would like to thank both you and Charles for all yourhard work associated with this challenging project.
The solution you have come up with exceeded myexpectations and I am sure without your experienceknowledge and support we would not have been ableto get the proposal to market in such an innovative
way."
Simon GoswellFuels Category Management Team
Defence Fuels Group
Copyright © Cygnet Consultancy Ltd 2011
Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011
Glide Forwards with Cygnet Consultancy
Cygnet Consultancy Ltd
Contact us on:
+44 (0) 1793 752485
www.cygnetconsultancy.com