Charles Eddolls©Copyright 2013My support serviceMy support serviceI hope you get the chance to read aboutI hope you get th...
ThyssenKrupp AGThyssenKrupp AGThyssenKrupp - 150,000 employees in over 80 countriesThyssenKrupp - 150,000 employees in ove...
To me savings are not a problemTo me savings are not a problem(The same applies to you!)(The same applies to you!)The larg...
My largest auctionMy largest auction(I can only publish whats in the public domain!)(I can only publish whats in the publi...
Pan European Transport (UK Military)Pan European Transport (UK Military)(Read the link its fascinating!)(Read the link its...
The London UndergroundThe London Underground(I saved $5 million on hourly consultancy rates)(I saved $5 million on hourly ...
A skeletal view of the firstA skeletal view of the firstUK Central Government eAuctionUK Central Government eAuctionThe Fi...
DCSA Magazine - AV auctionDCSA Magazine - AV auction(There are often be big savings in IT!)(There are often be big savings...
Some of my firstsSome of my firstsI introduced reverse auctions to many leaders including:I introduced reverse auctions to...
Some more of my clients:Some more of my clients: Acquire ServicesAcquire Services Alternative NetworksAlternative Networ...
 Air filters 36% Aluminium Extrusion 12% Architects services 14% Audio & Video Cassettes 26% Audio/Visual/installatio...
Testimonials"I allocated a member from my team to work with GS to"I allocated a member from my team to work with GS toiden...
Testimonials"I would like to thank Group Supplies for their support"I would like to thank Group Supplies for their support...
Testimonials"Group Supplies has developed a unique procurement"Group Supplies has developed a unique procurementprocess ap...
TestimonialsTo Dr Phillip Mason a colleague and a fellow director:To Dr Phillip Mason a colleague and a fellow director:"I...
ConclusionConclusionI would be pleased to help you with any procurement orI would be pleased to help you with any procurem...
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My support service

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A presentation showing how I have made unrivaled savings using the tender/reverse auction process with guides as to how I can help others do the same.

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My support service

  1. 1. Charles Eddolls©Copyright 2013My support serviceMy support serviceI hope you get the chance to read aboutI hope you get the chance to read about some of mysome of myexperiences as I know the details can only benefit you.experiences as I know the details can only benefit you.This presentation is designed to give you an insight intoThis presentation is designed to give you an insight intohow I have structured & competed some of the mosthow I have structured & competed some of the mostsuccessful tenders & reverse auctions in Europe.successful tenders & reverse auctions in Europe.http://www.cygnetconsultancy.com/http://www.cygnetconsultancy.com/
  2. 2. ThyssenKrupp AGThyssenKrupp AGThyssenKrupp - 150,000 employees in over 80 countriesThyssenKrupp - 150,000 employees in over 80 countries(Ask they will only help or turn you down!)(Ask they will only help or turn you down!)At the turn of the Century I approached ThyssenKrupp AG toAt the turn of the Century I approached ThyssenKrupp AG tosee if I could use their actual purchases to help me tosee if I could use their actual purchases to help me todevelop my reverse auction process.develop my reverse auction process.They gave me a free hand which allowed me and my team toThey gave me a free hand which allowed me and my team toproduce a unique purchasing process. Our in-house reverseproduce a unique purchasing process. Our in-house reverseauction software was years ahead of its timeauction software was years ahead of its timeThe trials were so successful that ThyssenKrupp issued aThe trials were so successful that ThyssenKrupp issued apress release confirming that we saved them 29%press release confirming that we saved them 29%http://dld.bz/cA7shhttp://dld.bz/cA7sh
  3. 3. To me savings are not a problemTo me savings are not a problem(The same applies to you!)(The same applies to you!)The largest saving I am allowed to publish is £100 million+The largest saving I am allowed to publish is £100 million+(($155 million)$155 million) (43%). In this competition I split the existing(43%). In this competition I split the existingsingle source contract into manageable portions. Thissingle source contract into manageable portions. Thisenabled me to invite more companies to complete. Ienabled me to invite more companies to complete. Istructured the tenders to meet the suppliers needs andstructured the tenders to meet the suppliers needs andmanaged and ran three auctions to replace the contractmanaged and ran three auctions to replace the contractThe AuctionsThe Auctions2,432 bids were received which was the highest no of bids2,432 bids were received which was the highest no of bidsin an MoD auction. The extension period was 13 hours & 45in an MoD auction. The extension period was 13 hours & 45minutes and the final auction produced the highest hourlyminutes and the final auction produced the highest hourlysaving for an MoD auction at circa $10. million per hoursaving for an MoD auction at circa $10. million per hourhttp://http://dlddld..bzbz//cAwTzcAwTz ..
  4. 4. My largest auctionMy largest auction(I can only publish whats in the public domain!)(I can only publish whats in the public domain!)My largest reverse auction was for a £1.5My largest reverse auction was for a £1.5 BillionBillion commoditycommoditysupply. I competed all aspects from ship chartering to productsupply. I competed all aspects from ship chartering to productprocessing and final delivery. The result was a great successprocessing and final delivery. The result was a great successMy most unusual competitionMy most unusual competition(Do not be afraid to seek the impossible)(Do not be afraid to seek the impossible)I purchased over 500 vehicles from a motor manufacturer whoI purchased over 500 vehicles from a motor manufacturer whowere aware that I could only buy from them. They hadwere aware that I could only buy from them. They hadprofessed to have given my client their rock bottom prices.professed to have given my client their rock bottom prices.I competed the supply between the manufacturer’s sales andI competed the supply between the manufacturer’s sales andfinance departments.Despite all parties knowing that I wouldfinance departments.Despite all parties knowing that I wouldhave to buy from them I saved over $500,000have to buy from them I saved over $500,000
  5. 5. Pan European Transport (UK Military)Pan European Transport (UK Military)(Read the link its fascinating!)(Read the link its fascinating!)The contract covered:The contract covered:The movement of general stores and medical equipment between theThe movement of general stores and medical equipment between theUK and Germany, including a daily express run from Bicester in theUK and Germany, including a daily express run from Bicester in theUK to Dulmen in GermanyUK 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://dld.bz/cA74Chttp://dld.bz/cA74C
  6. 6. The London UndergroundThe London Underground(I saved $5 million on hourly consultancy rates)(I saved $5 million on hourly consultancy rates)Tube Lines (whilst owned by Bechtel & Amey)were inTube Lines (whilst owned by Bechtel & Amey)were inpartnership with London Underground rebuilding thepartnership with London Underground rebuilding theJubilee line, Northern line and Piccadilly line.AndrewJubilee line, Northern line and Piccadilly line.AndrewGeffryes, Head of Corporate Procurement for TubeGeffryes, Head of Corporate Procurement for TubeLines commented:Lines commented:““As Tube Lines had no direct previous experience weAs Tube Lines had no direct previous experience welooked for a reliable and trusted partner to lead us in thelooked for a reliable and trusted partner to lead us in theuse of reverse auctions. We chose GSA and the initial trialsuse of reverse auctions. We chose GSA and the initial trialsproved very successful, this led to us extending our use ofproved very successful, this led to us extending our use ofGSA to run a series of reverse auctions in both theGSA to run a series of reverse auctions in both thetraditional commodity type areas as well as moretraditional commodity type areas as well as morespecialist ones, achieving saving up to 42%”specialist ones, achieving saving up to 42%”
  7. 7. A skeletal view of the firstA skeletal view of the firstUK Central Government eAuctionUK Central Government eAuctionThe First OGCbuying.solutionreverse auction1. Who supplied & at what Cost2. Is the specification correctMany changes6. Make it simple5. Encourage Competition4. Structure to suppliers need3. Evaluate “Best Value”11% more tissues freeless labour & wastagePackaging &order procedureEnsure all can competePre Condition the BiddersCompare to database(assess the result)66% savings ($1+Million)+11% betterment66% savings ($1+Million)+11% bettermenthttp://dld.bz/cA7mFhttp://dld.bz/cA7mF
  8. 8. DCSA Magazine - AV auctionDCSA Magazine - AV auction(There are often be big savings in IT!)(There are often be big savings in IT!)I competed the three existing contracts for the supply &I competed the three existing contracts for the supply &installation of audio visual & equipment associated supportinstallation of audio visual & equipment associated supportservices and video teleconferencing (VTC)services and video teleconferencing (VTC)The participants could bid on some 200 lines and we hadThe participants could bid on some 200 lines and we hadstructured 1,000+ price factors in the cost model.structured 1,000+ 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% ofThe saving was over $6.3 million this being some 33.5% ofprojected contract value compared with historic costs.projected 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://dld.bz/cA7q9http://dld.bz/cA7q9
  9. 9. Some of my firstsSome of my firstsI introduced reverse auctions to many leaders including:I introduced reverse auctions to many leaders including:
  10. 10. Some more of my clients:Some more of my clients: Acquire ServicesAcquire Services Alternative NetworksAlternative Networks Barnet Enfield and HaringeyBarnet Enfield and Haringey CalumetCalumet Cheltenham CouncilCheltenham Council DBC FoodserviceDBC Foodservice Gloucester (GPP)Gloucester (GPP) HadenHaden Hammersmith NHSHammersmith NHS J P BeallsJ P Bealls LDVLDV Nottingham UniversityNottingham University Mayflower Vehicle SystemsMayflower Vehicle Systems MilklinkMilklink The University of OxfordThe University of Oxford Newham NHSNewham NHS North Middlesex NHSNorth Middlesex NHS Nottingham UniversityNottingham University NUS ServicesNUS Services TransBus InternationalTransBus International UK HydrographicsUK Hydrographics Whittington NHSWhittington NHSMany other leading organisationsMany other leading organisations
  11. 11.  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(Remember a high percentage is always meaningful)(Remember a high percentage is always meaningful)
  12. 12. 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 Automotive
  13. 13. 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)
  14. 14. 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 Company
  15. 15. 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 experienceexpectations and I am sure without your experienceknowledge 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 Group
  16. 16. ConclusionConclusionI would be pleased to help you with any procurement orI would be pleased to help you with any procurement oroperational needs so if you would like a chatoperational needs so if you would like a chatdrop me an email and I’ll get back to youdrop me an email and I’ll get back to youcharleseddolls@cygnetconsultancy.com(All detail and discussion will be confidential(All detail and discussion will be confidentialunless you wish to publicise the content).unless you wish to publicise the content).http://www.cygnetconsultancy.com/http://www.cygnetconsultancy.com/

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