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..\ Charles Eddolls Cygnet Consultancy Ltd I offer low cost extensive experience From recycling to cost reduction I supply hands on support with a pragmatic approach My purchasing competitions have average savings of over 30% Charles Eddolls Reducing Costs Not Quality January 2016

Cygnet power point.ppt january

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Page 1: 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

Page 2: Cygnet power point.ppt january

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

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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

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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

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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

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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%

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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

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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

Page 9: Cygnet power point.ppt january

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