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Charles Eddolls support presentation 4

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From cost reduction and restructuring to marketing and implementation, the Cygnet team will support and help you to achieve your goals. Whether you work for a private sector company or public sector …

From cost reduction and restructuring to marketing and implementation, the Cygnet team will support and help you to achieve your goals. Whether you work for a private sector company or public sector organisation you only need to tell us what you believe are the issues which are inhibiting the success of your business and whatever the size of the problem we can help.

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  • 1. Charles Eddolls© 2013Charles Eddolls© 2013Charles EddollsCharles EddollsBusiness SupportBusiness SupportI am offering support on an individual basis and thisI am offering support on an individual basis and thisPowerPoint show gives an insight into my history, thePowerPoint show gives an insight into my history, theservices that I offer and how this can benefit you.services that I offer and how this can benefit you.This presentation shows me in business at the highestThis presentation shows me in business at the highestlevel and highlights some exceptional cost savings.level and highlights some exceptional cost savings.My history spans 40 years and includes directorships withMy history spans 40 years and includes directorships withleading companies through to personal support that hasleading companies through to personal support that hascreated savings totalling hundreds of millions of pounds.created savings totalling hundreds of millions of pounds.
  • 2. What is my aim?What is my aim?To help you to achieve best value.To help you to achieve best value.To successfully compete complex supply needs.To successfully compete complex supply needs.To address problems in your procurement.To address problems in your procurement.To suggest other business benefits.To suggest other business benefits.
  • 3. How can I help?How can I help?I have hands on experience in many sectors.I have hands on experience in many sectors.I have led reverse auction development.I have led reverse auction development.Leaders ask me for help on commercial issues.Leaders ask me for help on commercial issues.I have direct hands on experience having managed aI have direct hands on experience having managed aworkforce of over 600 people at multiple locations.workforce of over 600 people at multiple locations.
  • 4. Some of my positionsSome of my positions:• CEO – Cygnet Consultancy Ltd - ConsultancyCEO – Cygnet Consultancy Ltd - Consultancy• CEO - Group Supplies Plc – Leading UK RA providerCEO - Group Supplies Plc – Leading UK RA provider• CEO - AWOI – One of the first UK internet sales portalsCEO - AWOI – One of the first UK internet sales portals• CEO - Internet Marketing Management Plc –software specialistsCEO - Internet Marketing Management Plc –software specialists• Founding Dir. - European Metal Recycling Ltd – One of the worlds largestFounding Dir. - European Metal Recycling Ltd – One of the worlds largestrecycling firms, which has a turnover of circa £3recycling firms, which has a turnover of circa £3 BillionBillion• Opps. Dir. - Cooper GroupOpps. Dir. - Cooper Group – For over 20years I helped to grow this family– For over 20years I helped to grow this familybusiness until it became the largest UK metal recycling company.business until it became the largest UK metal recycling company.Coopers merged with a smaller company to formCoopers merged with a smaller company to formEuropean Metal Recycling Ltd.European Metal Recycling Ltd.
  • 5. Group Supplies PlcGroup Supplies Plc ((typical clients)• BalfourBeattyBalfourBeatty• Bax GlobalBax Global• BechtelBechtel• BMWBMW• Compass GroupCompass Group• EMREMR• Hellman World WideHellman World Wide• Holt JCBHolt JCB• Pall CorporationPall Corporation• P&OP&O• ThyssenKruppAGThyssenKruppAG• The Ministry of DefenceThe Ministry of Defence• Her Majesty’s Revenue & CustomsHer Majesty’s Revenue & Customs• The Home OfficeThe Home Office• Dept of Constitutional AffairsDept of Constitutional Affairs• The Metropolitan PoliceThe Metropolitan Police• The Foreign & Commonwealth OfficeThe Foreign & Commonwealth Office• HM TreasuryHM Treasury• The Office of Government CommerceThe Office of Government Commerce• HM Prison ServiceHM Prison Service• The University of OxfordThe University of Oxford• Nottingham UniversityNottingham University• Birmingham City (largest UK council)Birmingham City (largest UK council)• Numerous HospitalsNumerous Hospitals• ETC….ETC….Private Sector Public SectorPrivate Sector Public Sector
  • 6. A World of Indulgence LtdA World of Indulgence LtdA commercial portal ahead of its time (1999)A commercial portal ahead of its time (1999)Over 100,000 hits per monthOver 100,000 hits per monthLeading retail outlets used it to promote their productsLeading retail outlets used it to promote their productsIts commitment to a Brits award charity auction resulted inIts commitment to a Brits award charity auction resulted inIMM developing the uniqueIMM developing the uniqueGroup Supplies reverse auction softwareGroup Supplies reverse auction softwareUnique celebrity interviews etc…Unique celebrity interviews etc…Charles Eddolls© 2013Charles Eddolls© 2013
  • 7. European Metal Recycling LtdEuropean Metal Recycling Ltd• 150 Locations around the world150 Locations around the world• Over 10 million tons of product per yearOver 10 million tons of product per year• An environmentally motivated companyAn environmentally motivated company• An annual turnover of circa $5 billionAn annual turnover of circa $5 billion• As a founding director I set up their quality proceduresAs a founding director I set up their quality proceduresgaining ISO 9001 & 1401and promoted a rigorousgaining ISO 9001 & 1401and promoted a rigoroushealth & safety policy with in-house traininghealth & safety policy with in-house training• As their operations director I directly managedAs their operations director I directly managedover 60 % of the companys operationsover 60 % of the companys operations
  • 8. The Cooper GroupThe Cooper GroupSamples of contracts that I negotiated:Samples of contracts that I negotiated:• £ 60 million 10-year contract with the Rover£ 60 million 10-year contract with the Rover• Rolling contract with NissanRolling contract with Nissan• Rolling contract with Nissan YamatoRolling contract with Nissan Yamato• Disposal contract for Nuclear Electric (Magnox Plc)Disposal contract for Nuclear Electric (Magnox Plc)• £100 million supply contract with ThyssenKruppAG£100 million supply contract with ThyssenKruppAGCoopers Holdings Ltd 1987 –’94 Group Ops DirectorCoopers Holdings Ltd 1987 –’94 Group Ops DirectorCoopers (Metals) Ltd 1975 – ‘87 Group Ops DirectorCoopers (Metals) Ltd 1975 – ‘87 Group Ops DirectorCoopers (Metals) Ltd 1970 – ‘75 Local DirectorCoopers (Metals) Ltd 1970 – ‘75 Local Director
  • 9. Reverse Auction DevelopmentReverse Auction DevelopmentThyssenKrupp - 150,000 employees in over 80 countriesThyssenKrupp - 150,000 employees in over 80 countriesAt the turn of the Century ThyssenKrupp AG allowed me to useAt the turn of the Century ThyssenKrupp AG allowed me to usetheir actual purchases to develop my reverse auction process.their actual purchases to develop my reverse auction process.They gave me a free hand that resulted in the creation of unique RAThey gave me a free hand that resulted in the creation of unique RAsoftware and purchasing procedures.software and purchasing procedures.My in-house reverse auction software was years ahead of its time.My in-house reverse auction software was years ahead of its time.The trials were so successful that ThyssenKrupp issued a pressThe trials were so successful that ThyssenKrupp issued a pressrelease confirming that I had saved them 29%.release confirming that I had saved them 29%.http://http://dlddld..bzbz/cA7sh/cA7sh
  • 10. Some clients that I introduced to RAsSome clients that I introduced to RAs• AramarkAramark• AmaryllisAmaryllis• Acquire ServicesAcquire Services• Alternative NetworksAlternative Networks• BMW (UK)BMW (UK)• Barnet Enfield and Haringey (NHS)Barnet Enfield and Haringey (NHS)• CalumetCalumet• Cheltenham CouncilCheltenham Council• DBC FoodserviceDBC Foodservice• European Metal RecyclingEuropean Metal Recycling• Gloucester (GPP)Gloucester (GPP)• Grant ThorntonGrant Thornton• Hammersmith (NHS)Hammersmith (NHS)• London TaxisLondon TaxisETC - ETCETC - ETC• Mayflower Vehicle SystemsMayflower Vehicle Systems• MilklinkMilklink• Ministry of DefenceMinistry of Defence• The University of OxfordThe University of Oxford• Newham (NHS)Newham (NHS)• North Middlesex (NHS)North Middlesex (NHS)• OGC Buying SolutionsOGC Buying Solutions• Pall CorporationPall Corporation• P&OP&O• RUH Bath (NHS)RUH Bath (NHS)• Schneider ElectricSchneider Electric• Sims RecyclingSims Recycling• ThyssenKrupp AG (UK)ThyssenKrupp AG (UK)• Tube LinesTube Lines• UK HydrographicsUK Hydrographics• University of ExeterUniversity of Exeter• Whittington NHSWhittington NHS
  • 11. Reducing costsReducing costsMy largest publicised saving was £100 million + (My largest publicised saving was £100 million + ($155 million)$155 million) (43%)(43%)This was a complex competition that was successful because I split up anThis was a complex competition that was successful because I split up anexisting single source contract into manageable portions.existing single source contract into manageable portions.This enabled smaller companies to complete in tenders that wereThis enabled smaller companies to complete in tenders that werestructured to meet all of the suppliers needsstructured to meet all of the suppliers needsThe AuctionThe Auction2,432 bids were received. The extension period was 13 hours & 452,432 bids were received. The extension period was 13 hours & 45minutes with an hourly saving of circa $10. millionminutes with an hourly saving of circa $10. millionhttp://http://dlddld..bzbz//cAwTzcAwTz ..
  • 12. What size are reverse auctions?What size are reverse auctions?My largest auction was for £1.5 BillionMy largest auction was for £1.5 BillionMy smallest £20KMy smallest £20KTo save money you do not have to use an auction!To save money you do not have to use an auction!I purchased 500 estate cars from a leading motor manufacturer whoI purchased 500 estate cars from a leading motor manufacturer whohad professed to have already given my client their rock bottom prices.had professed to have already given my client their rock bottom prices.I competed the need between their sales and finance departmentsI competed the need between their sales and finance departmentsusing e-mail and telephone.using e-mail and telephone.All parties knew that I would only buy from them:All parties knew that I would only buy from them:I saved over $500,000!I saved over $500,000!
  • 13.  Air filters 36% Aluminium 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%Examples of savingsExamples of savings(a small part of our 30% average)(a small part of our 30% average)
  • 14. Positive points re an RAPositive points re an RA(for the buyer)(for the buyer)• Improves the cost of products/servicesImproves the cost of products/services• Reduces negotiation process timeReduces negotiation process time• Is an easy process to repeat with other productsIs an easy process to repeat with other products• Encourages development of closer supplier relationshipsEncourages development of closer supplier relationships• Raises competitivenessRaises competitiveness
  • 15. Positive points re an RAPositive points re an RA(for the supplier)(for the supplier)• Improves discipline in the tendering processImproves discipline in the tendering process• Encourages transparency of pricing and ability to react toEncourages transparency of pricing and ability to react tocompetitors pricescompetitors prices• Reduces negotiation process timeReduces negotiation process time• Low entry costs & raises competitivenessLow entry costs & raises competitiveness
  • 16. Negative points re an RANegative points re an RA(for an incumbent supplier)(for an incumbent supplier)• Risk of loosing a contractRisk of loosing a contract• Have to explain how the contract worksHave to explain how the contract works• Potential loss of margin and profitPotential loss of margin and profit• May bring tension to an existing relationshipMay bring tension to an existing relationship
  • 17. Example auctionsExample auctions Pan European TransportPan European TransportThe contract covered:The contract covered:The movement of general stores and medical equipmentThe movement of general stores and medical equipmentbetween the UK and Germany, including a daily express runbetween the UK and Germany, including a daily express runfrom Bicester in the UK to Dulmen in Germanyfrom Bicester in the UK to Dulmen in GermanyThe movement of stores within North-West EuropeThe movement of stores within North-West EuropeThe provision of transport services for the movement of stores fromThe provision of transport services for the movement of stores fromthe UK, to Germany and to the Pan-Balkan States.the UK, to Germany and to the Pan-Balkan States.Client quote “Following the auction, it was clear to thoseClient quote “Following the auction, it was clear to thoseinvolved that the realised savings were far greater than expected”involved that the realised savings were far greater than expected”http://http://dlddld..bzbz/cA74C/cA74C
  • 18. ExampleExample The London UndergroundThe London Underground(I saved $5 million on hourly consultancy rates)(I saved $5 million on hourly consultancy rates)Tube Lines was owned by Bechtel & Amey and were in partnershipTube Lines was owned by Bechtel & Amey and were in partnershipwith London Underground rebuilding thewith London Underground rebuilding theJubilee line, Northern line and Piccadilly line.Jubilee line, Northern line and Piccadilly line.Andrew Geffryes, Head of Corporate Procurement commented:Andrew Geffryes, Head of Corporate Procurement commented:““As Tube Lines had no direct previous experience we looked for a reliableAs Tube Lines had no direct previous experience we looked for a reliableand trusted partner to lead us in the use of reverse auctions.and trusted partner to lead us in the use of reverse auctions.We chose GSA and the initial trials proved very successful, this led to usWe chose GSA and the initial trials proved very successful, this led to usextending our use of GSA to run a series of reverse auctions in both theextending our use of GSA to run a series of reverse auctions in both thetraditional commodity type areas as well as more specialist ones,traditional commodity type areas as well as more specialist ones,achieving saving up to 42%”achieving saving up to 42%”
  • 19. ExampleExample First UK Central Government RAFirst UK Central Government RA66% savings ($1+Million)+11% betterment66% savings ($1+Million)+11% bettermenthttp://http://dlddld..bzbz/cA7mF/cA7mFA resounding success for the client!A resounding success for the client!““This is a fine example of a reverse auction achieving tremendousThis is a fine example of a reverse auction achieving tremendoussuccess and the DCG is delighted to have made such significantsuccess and the DCG is delighted to have made such significantsavings. The commercial staff adopted a dynamic approach insavings. The commercial staff adopted a dynamic approach inselecting this method of purchasing and we will certainly be usingselecting this method of purchasing and we will certainly be usingthe process again in the future when and where appropriate. I canthe process again in the future when and where appropriate. I canthoroughly recommend the procedure ….”thoroughly recommend the procedure ….”- Brigadier Little, Head of the Defence Catering Group- Brigadier Little, Head of the Defence Catering Group
  • 20. ExampleExample AV auctionAV auctionWe competed three existing contracts for the supply and installation ofWe competed three existing contracts for the supply and installation ofaudio visual & equipment associated support services and videoaudio visual & equipment associated support services and videoteleconferencing (VTC)teleconferencing (VTC)The participants could bid on some 200 lines and we had structured 1,000+The participants could bid on some 200 lines and we had structured 1,000+price factors in the cost model.price factors in the cost model.Circa 1,700 separate bids were placed across the baskets.Circa 1,700 separate bids were placed across the baskets.The saving was over $6.3 million this being some 33.5% of projectedThe saving was over $6.3 million this being some 33.5% of projectedcontract value compared with historic costs.contract value compared with historic costs.The auction ran for nine hours into the extension periodThe auction ran for nine hours into the extension periodhttp://http://dlddld..bzbz/cA7q9/cA7q9
  • 21. Testimonials"I allocated a member from my team to work with GS to"I allocated a member from my team to work with GS toidentify areas of possible cost savings. At each stageidentify areas of possible cost savings. At each stageof the process, GS summarized their findings for approval.of the process, GS summarized their findings for approval.From the initial analysis that GS made, we agreed thatFrom the initial analysis that GS made, we agreed thatthey would focus on the product areas of safety wear,they would focus on the product areas of safety wear,packaging, oils & lubricants and welding. GS made apackaging, oils & lubricants and welding. GS made aforecast at this stage of the likely cost savings."forecast at this stage of the likely cost savings."We were very pleased with the results. The savingsWe were very pleased with the results. The savingswere 29% of the total tender value."were 29% of the total tender value."Robert Soen,Robert Soen,General Manager - ThyssenKrupp AutomotiveGeneral Manager - ThyssenKrupp AutomotiveThyssenKrupp AutomotiveThyssenKrupp Automotive
  • 22. Testimonials"I would like to thank Group Supplies for their support"I would like to thank Group Supplies for their supportand assistance to date and I look forward to workingand assistance to date and I look forward to workingcollaboratively with you on promoting reverse auctionscollaboratively with you on promoting reverse auctionsas an alternative route to acquisition in delivering realas an alternative route to acquisition in delivering realvalue for our forces.value for our forces.Where the auction process has been utilised withinWhere the auction process has been utilised withinMoDMoDit has consistently delivered results"it has consistently delivered results"Grant Morris whenGrant Morris whenDirector General - Commercial (Project Delivery)Director General - Commercial (Project Delivery)The Ministry of DefenceThe Ministry of Defence
  • 23. Testimonials"Group Supplies has developed a unique procurement"Group Supplies has developed a unique procurementprocess applicable across the whole spectrum ofprocess applicable across the whole spectrum ofprocurement. They have successfully completed an initialprocurement. They have successfully completed an initialproject in liaison with our buyers, which produced savingsproject in liaison with our buyers, which produced savingsand are now involved in reviewing our activity relating toand are now involved in reviewing our activity relating tolubrication oils.lubrication oils.We are in the process of identifying a thirdWe are in the process of identifying a thirdcommodity for assessment as we develop our relationship.commodity for assessment as we develop our relationship.The approach contrasts with traditional cost saving methodsThe approach contrasts with traditional cost saving methodsin the depth and scope of research and culminates in anin the depth and scope of research and culminates in aninnovative live trading floor generating cost reductionsinnovative live trading floor generating cost reductionsagainst bespoke tenders."against bespoke tenders."David J Russell, Purchasing Manager (Indirect),David J Russell, Purchasing Manager (Indirect),Swindon Pressings Ltd - a BMW Group CompanySwindon Pressings Ltd - a BMW Group CompanyBMWBMW
  • 24. TestimonialsTo Dr Phillip Mason a colleague and a fellow director:To Dr Phillip Mason a colleague and a fellow director:"I would like to thank both you and Charles for all your"I would like to thank both you and Charles for all yourhard work associated with this challenging project.hard work associated with this challenging project.The solution you have come up with exceeded myThe solution you have come up with exceeded myexpectations and I am sure without your experience,expectations and I am sure without your experience,knowledge and support we would not have been ableknowledge and support we would not have been ableto get the proposal to market in such an innovativeto get the proposal to market in such an innovativeway."way."Simon GoswellSimon GoswellFuels Category Management TeamFuels Category Management TeamDefence Fuels GroupDefence Fuels GroupDefence Fuels GroupDefence Fuels Group
  • 25. Charles Eddolls© 2013Charles Eddolls© 2013ConsultancyConsultancyI find the best course of action is arrived at byI find the best course of action is arrived at bydiscussing problems on a one to one basis.discussing problems on a one to one basis.Following a conference call I would suggest aFollowing a conference call I would suggest abespoke support service to meet your needs.bespoke support service to meet your needs.To get started why not click on the following linkTo get started why not click on the following linkand book an initial consultation.and book an initial consultation.www.consultancy.with-www.consultancy.with-charlescharles.com.com

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