Power Point.Reverse Auctions


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Details of Cygnet Consultancy reverse Auctions

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Power Point.Reverse Auctions

  1. 1. Glide Forwards with Cygnet Consultancy & The Buying Group Reducing Cost Not Quality
  2. 2. Glide Forwards with Cygnet Consultancy Award Winning Software “ User friendly and easy to operate” “ bids to server in one second ” Developed in conjunction with Industrial Conglomerate ThyssenKrupp AG Copyright © Cygnet Consultancy Ltd 2011 100% Reliability in all auctions Genuine Savings of up to £100 million in a single event Cut cost of Royal Navy refits
  3. 3. Largest Public Sector Auction Saving Over £100 Million on a £232 million contract (43%) Copyright © Cygnet Consultancy Ltd 2011 <ul><li>Biggest UK public sector reverse auction </li></ul><ul><li>£100M Saving on a £232 million spend (approx 43%) </li></ul><ul><li>2,432 bids the highest on a public sector reverse auction </li></ul><ul><li>Over 14 hours of continuous bidding </li></ul><ul><li>Unrivaled savings performance @ £6.4 million per hour </li></ul><ul><li>MoD combined its own office requirement with: </li></ul><ul><ul><ul><li>Her Majesty’s Revenue and Customs </li></ul></ul></ul><ul><ul><ul><li>Home Office </li></ul></ul></ul><ul><ul><ul><li>Dept of Constitutional Affairs </li></ul></ul></ul><ul><ul><ul><li>Metropolitan Police </li></ul></ul></ul><ul><ul><ul><li>Foreign & Commonwealth Office </li></ul></ul></ul><ul><ul><ul><li>HM Treasury, </li></ul></ul></ul><ul><ul><ul><li>Office of Government Commerce </li></ul></ul></ul><ul><ul><ul><li>HM Prison Service </li></ul></ul></ul>
  4. 4. Glide Forwards With The Buying Group The Cygnet Buying Group Leverage Buying The Cygnet Buying Group Copyright © Cygnet Consultancy Ltd 2011 <ul><ul><li>Cygnet invites select companies to join their buying group </li></ul></ul><ul><ul><li>We combine supply volumes to leverage costs </li></ul></ul><ul><ul><li>Cygnet negotiate contracts with major suppliers for goods and services </li></ul></ul><ul><ul><li>By comparing existing prices we achieve the best deals </li></ul></ul>
  5. 5. Examples of clients that our consultants have helped   Acquire services - ASW Celsa Steel (UK) - Aga Rangemaster - Amaryllis Group - Aramark - ABRO Barnet Enfield and Haringey NHS - Bibby Distribution - Birmingham City Council - BMW Swindon Pressings - Booker  - The Bristol & Weston Purchasing Consortium - Buy as you view - Burton International Plc -  Capital Vehicle Sales - Calumet Photographic  - Chelsea & Westminster Healthcare NHS Trust - Club Car UK - Compass Group PLC - Combat Support Equipment IPT  Crown Castle - DBC Foodservice - Defence Aviation Repair Agency - Defence Catering Group Department of Health - DSCA - Environment Agency - European Metal Recycling - Faber Prest   Foreign & Commonwealth Office - Gloucestershire NHS - Grant Thornton UK LLP - Green & Kassab Ltd - Haden Building Management - Hammersmith & Royal Free - Hellman Worldwide Logistics - HM Treasury - Hydrex Equipment  - IoD - Intenda UK - J P Bealls – Kelly Holdings London Taxi International - Maidstone & Tunbridge Wells NHS Trust - Mandeville Mayflower Vehicle Systems - Metropolitan Police - Milk Link Group - Ministry of Defence National Grid Transco - Newham Hospital NHS Trust -   Nottingham (University) - NUS Services buying.solutions - OGC - P&O - Pall Corporation – PPS - Price Trak - PSCA - Royal Hospital for Neurodisability - RUH Bath – Schneider Electric - Servicespan - Simmsmetal UK  -  Tameside MBC- The Warship Support Agency  Thyssen Stairlifts - ThyssenKrupp AG - ThyssenKrupp Automotive -  Trafford MBC – TransBus Dennis International Tube Lines - University of Exeter University of Oxford  -  UK Hydrographic Office - Whittington NHS - WSP Group etc  Glide Forwards with Cygnet Consultancy
  6. 6. Glide Forwards with Cygnet Consultancy Our Support & Advice Copyright © Cygnet Consultancy Ltd 2011 The team provides support to enable clients to achieve their goals.   Whatever the size of the problem our support will help. Green Targets Climate change and your carbon foot-print offer unique problems and opportunities for your procurement professionals. We will assist you through every step to ensure you are better placed to meet your green targets. Experience The list is extensive so regardless of your need be assured we will be able to guide you to the most commercial result. For a consultation contact us +44 (0) 1793 752485 www.cygnetconsultancy.com
  7. 7. <ul><li>Contrast Media 65% </li></ul><ul><li>Computer Consumables 63% </li></ul><ul><li>Diving Apparel 63% </li></ul><ul><li>Fuel Transportation 62% </li></ul><ul><li>Bespoke Mounts 54% </li></ul><ul><li>Audio/Visual/installations 49% </li></ul><ul><li>Printing 47% </li></ul><ul><li>Clothing 47% </li></ul><ul><li>Welding 45% </li></ul><ul><li>CCTV service contract 43% </li></ul><ul><li>Gloves and Linen 43% </li></ul><ul><li>Printer Consumables 40% </li></ul><ul><li>Hand and Cutting Tools 39% </li></ul><ul><li>Oils and Lubricants 37% </li></ul><ul><li>PPE 37% </li></ul><ul><li>Air filters 36% </li></ul><ul><li>Branded Food 36% </li></ul><ul><li>International Freight 32% </li></ul><ul><li>Tarpaulins 27% </li></ul><ul><li>Plastic bins 26% </li></ul><ul><li>Power Cables 26% </li></ul><ul><li>Lifts maintenance 25% </li></ul><ul><li>Domestic Couriers 23% </li></ul><ul><li>Courier parcel services 22% </li></ul><ul><li>Lease 22% </li></ul><ul><li>Trailer Hire 22% </li></ul><ul><li>BT Lines 20% </li></ul><ul><li>Mobile Phone 17% </li></ul><ul><li>Temporary staff 16% </li></ul><ul><li>Trailer Hire 16% </li></ul><ul><li>Steel 15% </li></ul><ul><li>Architects services 14% </li></ul><ul><li>Building Surveyor 14% </li></ul><ul><li>Quantity Surveyors 13% </li></ul><ul><li>Risk and Value 13% </li></ul><ul><li>Aluminum Extrusion 12% </li></ul><ul><li>Derv & Gas Oil exc duty 12% </li></ul><ul><li>European Freight 11% </li></ul><ul><li>Lorry Tyres & Services 11% </li></ul><ul><li>Stainless Steel Sheets 9% </li></ul><ul><li>Tube Lines £3.5 million on outsourced professional costs </li></ul><ul><li>A food Industry World Leader 35% on the supply of branded food </li></ul><ul><li>ThyssenKrupp Automotive 37% on Oil & Lubricants </li></ul><ul><li>LTI 10% on steel without the need to change their supplier </li></ul><ul><li>BMW tendered a supply & created good savings. We re-competed the same supply </li></ul><ul><li>and increased their savings by 40% </li></ul><ul><li> Sample Savings </li></ul>Some Consultancy / Reverse Auction Results Reducing Costs with Cygnet Consultancy
  8. 8. Commercial facts <ul><li>Our service generates instantaneous cost reduction </li></ul><ul><li>Our costs are paid for out of savings so our costs are not an issue </li></ul><ul><li>We support from the initial OJEU / advertised tender to the auction event </li></ul><ul><li>Our aim is to secure incredible savings with ongoing quality of supply </li></ul><ul><li>Post competition supplier relationships are excellent </li></ul><ul><li>Your commercial information will be treated in total confidence </li></ul><ul><li>We understand your issues and perform to meet your needs </li></ul>Commercial facts Copyright © Cygnet Consultancy Ltd 2011
  9. 9. FAQs <ul><li>How does our involvement affect current suppliers? </li></ul><ul><ul><li>We find few problems as we explain that a good supplier has little to fear from fair competition </li></ul></ul><ul><li>How do we address quality of supply? </li></ul><ul><ul><li>In partnership with you. The specifications of supply and tender construction are all important </li></ul></ul><ul><li>Why do you need us? </li></ul><ul><ul><li>Our experience brings an extra resource and a dimension that will save you money </li></ul></ul><ul><li>Will your current suppliers take part? </li></ul><ul><ul><li>Yes as their prices submitted into our initial tenders become their starting price in the auction </li></ul></ul><ul><li>What does this service cost? </li></ul><ul><ul><li>This varies dependant on how much we do but normally after savings there are no net costs </li></ul></ul><ul><li>Can we factor in cost of change? </li></ul><ul><ul><li>The software is infinitely variable and can cover any need </li></ul></ul>Copyright © Cygnet Consultancy Ltd 2011
  10. 10. Answers to questions that are seldom asked! <ul><li>“ Will the savings you achieve make our team </li></ul><ul><li>look incompetent?” </li></ul><ul><li>No not at all </li></ul><ul><li>By using our services you will be seen as innovators using the latest commercial processes and technology </li></ul><ul><li>By strategically using us you will obtain quick wins at no net cost </li></ul><ul><li>Our processes will produce beneficial changes in supplier behaviour </li></ul><ul><li>We will be an additional part of your team under your control </li></ul><ul><li>We supply a detailed and fully auditable report </li></ul><ul><li>Advise on how to manage “Core Drift” </li></ul><ul><li>Alert you to any pitfalls in future or past contracts </li></ul><ul><li>Advise on and deal with any supplier queries </li></ul><ul><li>Analysis bidders actions to understand their commercial drivers </li></ul><ul><li>This unique process can addresses any supply or service need </li></ul>Post Competition Actions Copyright © Cygnet Consultancy Ltd 2011
  11. 11. <ul><li>We advise on compliance and have never been involved in a challenge </li></ul><ul><li>Our software receives bids in one second with a 100% reliability record </li></ul><ul><li>This process can addresses any supply or service need </li></ul><ul><li>A bespoke support service to clients and their suppliers </li></ul><ul><li>In house expertise and knowledge allows us to solve any of your issues </li></ul><ul><li>A challenge to the status quo with average savings of over 25% </li></ul><ul><li>Unique knowledge transfer and after sales support </li></ul>USP’s Copyright © Cygnet Consultancy Ltd 2011
  12. 12. <ul><li>Address your needs, aims and issues </li></ul><ul><li>Analysis current suppliers volume and pricing </li></ul><ul><li>Detail the contract you want </li></ul><ul><li>Structure a tender to suit your aspiration </li></ul><ul><li>Pre-qualify suppliers </li></ul><ul><li>Send e-tenders to your chosen suppliers </li></ul><ul><li>Evaluate tender returns to structure a commercial reverse auction </li></ul><ul><li>Replicate auction for suppliers to use one week before the event </li></ul><ul><li>Open auction 24 hours before event for suppliers to view </li></ul><ul><li>Host the event </li></ul><ul><li>Comprehensive support following the auction </li></ul>A part of our competition input (Re Auctions) Copyright © Cygnet Consultancy Ltd 2011
  13. 13. Testimonials &quot;I allocated a member from my team to work with GS to identify areas of possible cost savings. At each stage of the process, GS summarized their findings for approval. From the initial analysis that GS made, we agreed that they would focus on the product areas of safety wear, packaging, oils & lubricants and welding. GS made a forecast at this stage of the likely cost savings.&quot; We were very pleased with the results. The savings were 29% of the total tender value.&quot; Robert Soen, whilst General Manager for ThyssenKrupp Automotive Copyright © Cygnet Consultancy Ltd 2011
  14. 14. Testimonials &quot;I would like to thank Group Supplies for their support and assistance to date and I look forward to working collaboratively with you on promoting reverse auctions as an alternative route to acquisition in delivering real value for our forces. Where the auction process has been utilised within MoD it has consistently delivered results&quot; Grant Morris when Director General - Commercial (Project Delivery) Copyright © Cygnet Consultancy Ltd 2011
  15. 15. Testimonials &quot;Group Supplies has developed a unique procurement process applicable across the whole spectrum of procurement. They have successfully completed an initial project in liaison with our buyers, which produced savings and are now involved in reviewing our activity relating to lubrication oils. We are in the process of identifying a third commodity for assessment as we develop our relationship. The approach contrasts with traditional cost saving methods in the depth and scope of research and culminates in an innovative live trading floor generating cost reductions against bespoke tenders.&quot; David J Russell, Purchasing Manager (Indirect), Swindon Pressings Ltd a BMW Group Company Copyright © Cygnet Consultancy Ltd 2011
  16. 16. Testimonials &quot; I would like to thank both you and Charles for all your hard work associated with this challenging project. The solution you have come up with exceeded my expectations and I am sure without your experience knowledge and support we would not have been able to get the proposal to market in such an innovative way.&quot; Simon Goswell Fuels Category Management Team Defence Fuels Group Copyright © Cygnet Consultancy Ltd 2011
  17. 17. Glide Forwards with Cygnet Consultancy Cygnet Consultancy Ltd Contact us on: +44 (0) 1793 752485 www.cygnetconsultancy.com