power point.reverse auctions

Reducing Cost Not QualityCopyright © Cygnet Consultancy Ltd 2011

Glide Forwards with

Cygnet Consultancy &

The Buying Group

Reducing Cost Not Quality


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


Largest Public Sector Auction Saving

Over £100 Million on a £232 million contract (43%)


• 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

•


Glide Forwards With The Buying Group

The Cygnet Buying Group

Leverage Buying

The Cygnet Buying Group


• 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


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




Our Support & Advice


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


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


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



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



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



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



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)



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



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)



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



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




Cygnet Consultancy Ltd

Contact us on:

+44 (0) 1793 752485

www.cygnetconsultancy.com

power point.reverse auctions

Business