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Presentation Of Phillips Consulting

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  • 1. Phillips Consulting
    Specialist Procurement Consultants
  • 2. Cost
    Service
    Phillips Consulting
    Specialist Procurement Consultants
    Objective
  • 3. Phillips Consulting
    Specialist Procurement Consultants
    The Benefits of Cost Reduction
    An Illustration
  • 4. Phillips Consulting
    Specialist Procurement Consultants
    Take a typical company:
  • 5. Phillips Consulting
    Specialist Procurement Consultants
    What happens if we can reduce
    material costs by just 5%?
  • 6. Phillips Consulting
    Specialist Procurement Consultants
  • 7. Phillips Consulting
    Specialist Procurement Consultants
    If the same profit increase were to
    be generated by increasing sales,
    what level of sales increase
    would be required?
  • 8. Phillips Consulting
    Specialist Procurement Consultants
    28.8%
    6:1 ratio
  • 9. Phillips Consulting
    Specialist Procurement Consultants
    At the existing 8% profit margin:
    Profit increase = New sales x 0.08
    £115,000 = New sales x 0.08
    New sales = 115,000 = £1,437,500
    0.08
  • 10. Phillips Consulting
    Specialist Procurement Consultants
    This represents a sales increase of 28.8%:
    28.8% = 1,437,500 x 100
    5,000,000
  • 11. Phillips Consulting
    Specialist Procurement Consultants
    Why use the Phillips Consulting
    route to cost saving?
  • 12. Phillips Consulting
    Specialist Procurement Consultants
    Well, for a start,
    what do our clients say?
  • 13. Phillips Consulting
    Specialist Procurement Consultants
  • 14. Phillips Consulting
    Specialist Procurement Consultants
  • 15. Phillips Consulting
    Specialist Procurement Consultants
  • 16. Phillips Consulting
    Specialist Procurement Consultants
    You can find further client
    comments on our website at:
    www.phillipsconsulting.co.uk/client_comments.htm
  • 17. Phillips Consulting
    Specialist Procurement Consultants
    Other reasons to use the
    Phillips Consulting
    route to cost saving?
  • 18. Phillips Consulting
    Specialist Procurement Consultants
  • Phillips Consulting
    Specialist Procurement Consultants
    Proven
    • 13 years practicing successfully
    • 25. Millions of pounds saved
    • 26. Satisfied clients include:
  • Phillips Consulting
    Specialist Procurement Consultants
    Solartron Metrology Ltd Trifast plc
    Caradon plc Humbrol Ltd
    AEA Battery Systems Ltd Harkness Hall Ltd
    Access International Ltd Pall Filtration
    B&W Loudspeakers Ltd Raymarine Ltd
    APV-Invensys Varian Medical
    Crowcon Detection Palmer Environmental
  • 27. Phillips Consulting
    Specialist Procurement Consultants
    Risk-free
    • Highly experienced consultants
    • 28. Board-level composure
    • 29. Qualified engineers
    • 30. Unrivalled expertise in negotiation
  • Phillips Consulting
    Specialist Procurement Consultants
    Self-financing
    • Fees linked to performance
    • 31. We pay for ourselves many times over
    • 32. We have never had an “out of pocket” client
  • Phillips Consulting
    Specialist Procurement Consultants
    Transparent
    • Client involvement throughout assignment
    • 33. You can stop our work at any time
    • 34. There are no tantalizing mysteries
  • Phillips Consulting
    Specialist Procurement Consultants
    Focussed
    • No distractions
    • 35. No meetings to attend
    • 36. No staff issues
    • 37. No historical issues
    • 38. No supplier relationship problems
    • 39. Simply focussed expertise
  • Phillips Consulting
    Specialist Procurement Consultants
    Fast
    • Assignments usually completed in 3/4 months
    • 40. Savings often start flowing from month one
    • 41. Delays cost money!
  • Phillips Consulting
    Specialist Procurement Consultants
    Guaranteed Results
    Our Unique Performance Guarantee
    If at the end of our agreed assignment period we have not been able to identify savings exceeding the value of our fees, we will give you a complete refund
  • 42. Phillips Consulting
    Specialist Procurement Consultants
    What about fees?
  • 43. Phillips Consulting
    Specialist Procurement Consultants
    Daily consultancy rate
    plus
    Cost-reduction share
  • 44. Phillips Consulting
    Specialist Procurement Consultants
    £350 per day
    plus
    25% of first year savings
  • 45. Phillips Consulting
    Specialist Procurement Consultants
    Why do we think we can get results in your business?
  • 46. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 47. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 48. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 49. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 50. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 51. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 52. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 53. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 54. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 55. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 56. Phillips Consulting
    Specialist Procurement Consultants
    Typical Breakdown of a Purchasing Manager’s Time
  • 57. Phillips Consulting
    Specialist Procurement Consultants
    Out of necessity, today’s purchasing manager is like a decathlete
  • 58. Phillips Consulting
    Specialist Procurement Consultants
    We are sprinters!
  • 59. Phillips Consulting
    Specialist Procurement Consultants
    • Our commercial ‘muscles’ are highly developed
    • 60. Our experience is intensified
    • 61. Our goals are completely focussed
    • 62. Our commitment is total
  • Phillips Consulting
    Specialist Procurement Consultants
    How do we go about achieving
    cost savings?
  • 63. Phillips Consulting
    Specialist Procurement Consultants
    Typically:
    • 3/4 months duration, two days per week (35 working days)
    • 64. Working alongside incumbent purchasing staff
    • 65. Positioned as a member of the purchasing team to suppliers
    • 66. Totally focussed on detailed analysis, supplier selection,
    development and negotiation
  • 67. Phillips Consulting
    Specialist Procurement Consultants
    Possible downsides?
  • 68. Phillips Consulting
    Specialist Procurement Consultants
    You won’t be able to make savings
    Our performance guarantee means that we have to refund our fees
    if we don’t make savings, so we simply wouldn’t take on a client if we
    didn’t feel we could get results. In the final analysis, you don’t have
    to worry about whether we can make savings - our expertise enables
    us to carry all the risk.
  • 69. You won’t be able to make savings
    Phillips Consulting
    Specialist Procurement Consultants
    Why pay consultants - we should do this!
    Effectively, there is no cost to this service, as we guarantee to
    make savings. Also, our specialist skills and the level of detailed
    analysis that we complete, mean that we uncover savings that
    otherwise would not be identified.
    We work in a very co-operative and open way with your incumbent
    staff who, even if a little wary at the beginning, will come to value
    our service as a welcome boost in helping them achieve success.
  • 70. Phillips Consulting
    Specialist Procurement Consultants
    You won’t be able to make savings
    Why pay consultants - we should do this anyway!
    We’re going to see what savings we can get first
    We recently saved a client over £800,000. That’s equivalent to over
    £15,000 every week, over £66,000 every month! Delaying is very likely
    to be the most expensive option you could consider.
  • 71. You won’t be able to make savings
    Why pay consultants - we should do this anyway!
    We’re going to see what savings we can get first
    Phillips Consulting
    Specialist Procurement Consultants
    We don’t have time for this!
    Although we prefer to work with your purchasing staff and we welcome
    involvement, the amount of time they put in is totally governed by your
    preferences. We get on with the work ourselves and we work in a
    completely self-contained manner.
  • 72. Phillips Consulting
    Specialist Procurement Consultants
    You won’t be able to make savings
    Why pay consultants - we should do this anyway!
    We’re going to see what savings we can get first
    We don’t have time for this!
    Will you reduce quality, or increase our stock levels?
    Your current quality and logistical arrangements are our starting point.
    We will only ever make recommendations that maintain or improve
    your current arrangements. If you don’t like our recommendations,
    you are completely free to reject them. And, of course, if this means
    you don’t make savings, we don’t take our percentage.
  • 73. Phillips Consulting
    Specialist Procurement Consultants
    You won’t be able to make savings
    Why pay consultants - we should do this anyway!
    We’re delay to see what savings we can get first
    We don’t have time for this!
    Will you reduce quality, or increase our stock levels?
    Do we pay you your share before we actually make savings?
    Absolutely not! Our incentive payments come out of your positive cash
    flow. Only after savings have been implemented do you start to share
    some of your savings with us.
  • 74. Phillips Consulting
    Specialist Procurement Consultants
    In Summary
    • This is a ‘win-win’ service
    • 75. If we can’t make significant savings, you pay nothing but you have the re-assurance of a thorough ‘health-check’ of your purchasing arrangements.
    • 76. If we do make significant savings, you get cash benefits direct to your bottom line
  • Phillips Consulting
    Specialist Procurement Consultants
    £79,000 saved on Electronic Components
    £103,000 saved on Injection Mouldings
    £100,000 saved on PCB Assemblies
    £51,000 saved on Batteries
    £40,000 saved on Cable Assemblies
    £116,000 saved on Printing Costs
    £23,000 saved on Integrated Circuits
    £80,000 saved on Electronic Relays
  • 77. Phillips Consulting
    Specialist Procurement Consultants
    £132,000 saved on PVC Sheet
    £43,000 saved on Labels
    £55,000 saved on Wiring Looms
    £123,700 saved on Turned Parts
    £31,000 saved on Investments Castings
    £87,000 saved on RFI Shielding
    £162,500 saved on Fine Blankings
    £69,000 saved on PCBs
    £36,800 saved on Springs
  • 78. Phillips Consulting
    Specialist Procurement Consultants
    Thank you for taking the time to view this presentation.
    Phillips Management Consultants LLP (T/A Phillips Consulting)
    Hydon House
    High Street
    Partridge Green
    West Sussex RH13 8HR
    United Kingdom
    Tel: +44 (0) 1403 711129
    Fax: +44 (0) 1403 711654
    Email: enquiries@phillipsconsulting.co.uk
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