Cygnet power point.ppt november

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Cygnet Consultancy Ltd

Access to extensive experience

From recycling to cost reduction

We offer hands on support with a pragmatic approach

Our purchasing competitions average over 30% savings

Reducing Costs Not QualityNovember 2015

Cut Costs Not Corners November 2015

• We can generate major profit opportunities

• We can resolve operational problems

• We will perform to meet your needs

• Your information will be treated in total confidence

• Your ongoing supply relationships will be excellent

• We can work with your procurement and operations staff


A broad range of support

November 2015November 2015November 2015November 2015

November 2015


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 saved them 29%

• Introduced reverse auction to HM Treasury (OGC) saving

66% in their first auction with an 80% betterment An Auction in Progress

From warship refits to steel supply we:

Increase Your Profits


We have successful 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 sector Private sector• 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


Some savings we 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 Products19% 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%



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 free

less labour & less wastage

Packaging & order procedure

Ensure all can compete

Pre Condition the Bidders

Compare to database(assess the potential result)

We achieved savings of more than 65% Group Supplies


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 discouted new price paid on each first aniversity

• We had total reliability at nominal costs. Charles Eddolls

Thinking “Outside-of-the-Box”

Coopers Metals Ltd required over 50 new machines. I tenderd for the supply of long reach excavators with Ardennes grabs and wired for magnet use.

Our C.E.O.


· · Our transport experience enabled us to advise a client to stop Our transport experience enabled us to advise a client to stop unknowingly overloading vehicles that could have resulted in unknowingly overloading vehicles that could have resulted in

prosecutions and a serious loss of reputation prosecutions and a serious loss of reputation

· Commercial knowledge enabled us to remove historic “provision · Commercial knowledge enabled us to remove historic “provision cost inclusions” in contracts that had amounted to £3 Million each cost inclusions” in contracts that had amounted to £3 Million each

on five separate contracts per yearon five separate contracts per year

· By managing a supply contract we saved our client over 15% on his · By managing a supply contract we saved our client over 15% on his steel costs whilst retaining the same supplier.steel costs whilst retaining the same supplier.

By working with us you will have low cost access to management By working with us you will have low cost access to management experts with a unique track record.experts with a unique track record.

Find the solution



We help clients to succeed and would be pleased to help you.

Cygnet Consultancy LtdTel +44 (0) 1793 752 485 www.cygnetconsultancy.com

Contact us

Email us for free information: [email protected]



We help clients to succeed and would be pleased to help you.

Cygnet Consultancy LtdTel +44 (0) 1793 752 485 www.cygnetconsultancy.com

Contact us

Email us for free information: [email protected]
