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Cut Costs Expert Saves Over 30
1. ..
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 QualityJanuary 2016
2. Cut Costs Not CornersJanuary 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
3. Cut Costs Not CornersJanuary 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
4. Cut Costs Not CornersJanuary 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
5. Cut Costs Not CornersJanuary 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 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%
Charles Eddolls - Cygnet Consultancy Ltd
6. Cut Costs Not CornersJanuary 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 free
less 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%
7. Cut Costs Not CornersJanuary 2016
approach
supply
the
other
way
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
8. Cut Costs Not CornersJanuary 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
9. Cut Costs Not CornersJanuary 2016
I help clients to succeed and would be pleased to help you.
Charles Eddolls
Tel +44 (0) 797 008 2797
Tel +44 (0) 1793 752 485
www.cygnetconsultancy.com
Contact me
Email me for free information:
charleseddolls@cygnetconsultancy.com
Use paypal at http://dld.bz/ej2Nh
Charles Eddolls - Cygnet Consultancy Ltd
10. Cut Costs Not CornersJanuary 2016
I help clients to succeed and would be pleased to help you.
Charles Eddolls
Tel +44 (0) 797 008 2797
Tel +44 (0) 1793 752 485
www.cygnetconsultancy.com
Contact me
Email me for free information:
charleseddolls@cygnetconsultancy.com
Use paypal at http://dld.bz/ej2Nh
Charles Eddolls - Cygnet Consultancy Ltd