1. 1

2. West Australian basedWest Australian based
boutiqueboutique costcost
managementmanagement
consultancyconsultancy thatthat
identifies andidentifies and
implements effectiveimplements effective
cost reductioncost reduction

3. We assist our clients inWe assist our clients in
increasing theirincreasing their
profitabilityprofitability throughthrough
cost reduction whilecost reduction while
meeting their qualitymeeting their quality
and operationaland operational
requirementsrequirements

4. 1

5. Our focus is on YOUROur focus is on YOUR
non-core operatingnon-core operating
expenses whereexpenses where
savings goes directlysavings goes directly
to theto the bottom-linebottom-line

6. CouriersCouriers
Factory ConsumablesFactory Consumables
Fleet ManagementFleet Management
Food ServicesFood Services
Fork Lift ServicesFork Lift Services
FreightFreight
Information TechnologyInformation Technology
InsuranceInsurance
Janitorial ServicesJanitorial Services
Laboratory SuppliesLaboratory Supplies
Merchant Card FeesMerchant Card Fees
Office ProductsOffice Products
PackagingPackaging
Payroll ProcessingPayroll Processing
PrintPrint
Records ManagementRecords Management
TelecommunicationsTelecommunications
Temporary LaborTemporary Labor
UniformsUniforms
UtilitiesUtilities
Waste ManagementWaste Management
Customer SpecificCustomer Specific

7. 10% COST REDUCTION =10% COST REDUCTION =
18% INCREASE IN NET PROFIT18% INCREASE IN NET PROFIT
Profit *& LossProfit *& Loss Pre-SynergyPre-Synergy
WestWest
Post-SynergyPost-Synergy
WestWest
RevenueRevenue $10M$10M $10M$10M
Costs:Costs:
PurchasesPurchases $6M$6M $6M$6M
LabourLabour $1.2M$1.2M $1.2M$1.2M
General Exp.General Exp. $1.8M$1.8M $1.62M (-10%)$1.62M (-10%)
Net ProfitNet Profit $1M$1M $1.18M (+18%)$1.18M (+18%)

8. Seller Has An Unfair Advantage
DIY ?DIY ?

9. We haveWe have benchmarking databenchmarking data from the variousfrom the various
projects and industries we have served over theprojects and industries we have served over the
years;years;
OurOur widthwidth andand depth of professional expertisedepth of professional expertise
covers in dozens of overhead cost categoriescovers in dozens of overhead cost categories
that most companies cannot possibly afford tothat most companies cannot possibly afford to
employ internally;employ internally;
Reducing the cost of non-core overheadReducing the cost of non-core overhead
expenses, audited line for line isexpenses, audited line for line is ALL WE DOALL WE DO &&
Bad-cop -Bad-cop -suppliers know that “we knowsuppliers know that “we know
what they know “ – this meanswhat they know “ – this means
competitive tension!competitive tension! 1

10. YourYour
TimeTime
Value ofValue of
Money :Money :

11. Broad Industry Experience
Industry *
Company Annual
Revenue
Category Spend
Client Hours
Invested
Client
Savings
Return
per Hour
Invested
Savings
per project
Engineering $200,000,000.00 $150,000.00 3 $16,170.50 $5,390.17 22%
Labour Hire $20,000,000.00 $770,000.00 8 $135,549.00 $16,943.63 35%
Labour Hire $27,000,000.00 $877,027.00 10 $38,792.50 $3,879.25 9%
Leisure $12,000,000.00 $120,000.00 9 $8,500.00 $923.91 14%
Logistics $100,000,000.00 $403,775.00 2 $25,438.00 $12,719.00 13%
Logistics $120,000,000.00 $3,200,000.00 11 $215,000.00 $19,545.45 13%
Logistics $8,000,000,000.00 $180,000.00 3 $19,551.00 $6,517.00 22%
Manufacturing $25,000,000.00 $417,501.00 6 $21,989.93 $3,664.99 11%
Manufacturing $200,000,000.00 $460,000.00 13 $74,396.00 $5,722.77 32%
Manufacturing $180,000,000.00 $3,484,159.00 9 $120,571.00 $13,396.78 8%
Mining $1,200,000,000.00 $206,664.00 4 $17,000.00 $4,250.00 12%
Mining $100,000,000.00 $5,200,000.00 38 $258,454.00 $6,801.42 13%
Telecommunications $941,000,000.00 $103,000.00 4 $12,000.00 $3,000.00 23%
Total (Ave) $1,197,855.85 9 $7,904.18 17%
* West Australian Companies engaged with Synergy West
$7904.18$7904.18
PH:PH:

12. Seller Has An Unfair Advantage
Why we findWhy we find
savings :savings :
Your UnfairYour Unfair
AdvantageAdvantage

13. Seller Has An Unfair Advantage
TheThe largest spendinglargest spending
clients don’t alwaysclients don’t always
get the best priceget the best price

14. Seller Has An Unfair Advantage
Three companies withThree companies with
the same suppliersthe same suppliers don’tdon’t
always get the samealways get the same
discountdiscount

15. Seller Has An Unfair Advantage
Supplier loyalty doesSupplier loyalty does
not always equate tonot always equate to
best pricebest price

16. Seller Has An Unfair Advantage
The seller sells fewThe seller sells few
products to manyproducts to many
clients, whileclients, while the buyerthe buyer
purchases manypurchases many
products from manyproducts from many
different suppliersdifferent suppliers

17. 2013/142013/14
OutcomesOutcomes

18. OfficeSupplies33%OfficeSupplies33%OfficeSupplies33%OfficeSupplies33%
Energy9-35%Energy9-35%Energy9-35%Energy9-35%
Catering17%Catering17%Catering17%Catering17%
Telecoms21%Telecoms21%Telecoms21%Telecoms21%
Insurance25%Insurance25%Insurance25%Insurance25%
Freight24%Freight24%Freight24%Freight24%
Travel17%Travel17%Travel17%Travel17%

19. Risk?Risk?

20. 50% of actual measured50% of actual measured
savings for 24 months aftersavings for 24 months after
implementation:implementation:
• 10% deposit of estimated savings paid upon acceptance of10% deposit of estimated savings paid upon acceptance of
recommendation and implementationrecommendation and implementation
• Actual fee is billed monthly for the 24 months based on actual realizedActual fee is billed monthly for the 24 months based on actual realized
savings less a credit for amortizing the depositssavings less a credit for amortizing the deposits
No Savings = No FeeNo Savings = No Fee

21. ProcessProcess

22. DeliverableActivitiesTime
Analyse Recommend Implement
6 – 8 weeks/categories
Define project scope and sign agreement
Obtain financial data
Obtain incumbent supplier contracts
Understand volumes and activity
Understand business requirements with
stakeholders
Confirm business requirements
Prepare RFP
Identify and meet relevant suppliers
Manage bidding process
Benchmark costs and assist in supplier selection
24 months
Appoint supplier
Facilitate/assist implementation
Measure actual savings
Ongoing monitoring of supplier relationship and
contract terms
Opportunity Report
 Implementation
 24 Month Savings
 Reviews
Fees
None
 10% of Total Savings/
 Balance Over 24 Months

23.  If you were paying 20% moreIf you were paying 20% more
on general expenses ,on general expenses , howhow
would you know it?would you know it?
 How do you know if youHow do you know if you
compared well tocompared well to industryindustry
standardsstandards andand benchmarks?benchmarks?
 How do you know if you haveHow do you know if you have
the best program structurethe best program structure
toto ensure price tension?ensure price tension?

24. AccreditatiAccreditati
onon

25. Certified Management Consultant (CMC) is an internationally recognized award conferred
by Management Consulting Institutes that are members of the International Council of
Management Consulting Institutes (ICMCI). IMC Australia is a member of ICMCI and has
sole responsibility of awarding CMC status in Australia.
The assessment and certification process must meet strict guidelines stipulated by the
ICMCI.A Certified Management Consultant (CMC) provides formal and independent
recognition and endorsement of the consultant's competency, skills and experience as a
Management Consultant. Independently awarded by the Institute of Management
Consultants, CMC is a guarantee to clients that consultants have experience and
knowledge to deliver impartial, professional and cost-effective interventions with the
interests of the client central to the work.
CMC is internationally recognised in over 45 countries as well as well as being the pinnacle
of recognition as a management consultant.

26. TestimoniaTestimonia
lsls

27. "....were delighted to realise over $40,000 in actual gross savings at the completion of the project. By changing from five suppliers
to one enabled further efficiencies in our Company’s operations."
Chris Wessels-Company Secretary -Wood and Grieves Engineers
".... $35,000 in actual gross savings at the completion of the project. By changing from two suppliers to one enabled
furtherefficiencies in our Company’s operations."
Jason Paolone-Finance Manager -Toll Holdings
"Alba Edible Oils decided to run a trial across a few service options for a period of 4 months. At the end of the trial, we decided to
change the primary incumbent freight supplier to a secondary freight supplier and appoint a new carrier for our ISO business. The
project is presently yielding savings of 10%...".
Nigel Parker -Commercial Manager -Kimberley Industries
“.... savings of $1.17M over two years -21 %."
Ian Goldberg -Chief Financial Officer -Territory Resources
"$143,000 in gross savings at the completion of the project."
George Wilson -Chief Financial Officer -Coogee Chemicals
"Savings of $97,000 was realised and in this instance KI Group changed incumbent broker"
Peter Roebuck -Chief Financial Officer -KI Group
"Although iiNetdecided to stay with the incumbent supplier we are delighted with the outcome, and six months in, we continue to
save upwards of 20% compared to last year's spend"
Chris Brown -Company Secretary –iiNet
"Will got us a 27% savings in couriers which really opened our eyes to who else has been ripping us off. I recently negotiated
savings with the Australian Government of $100k, I never thought that was possible, but then I thought if Will can do this, I’ll give it a
go."
Steve Silberer-Chief Financial Officer -Harvey Beef

28. 1
Synergy West Pty LtdSynergy West Pty Ltd
ABN: 92106731800ABN: 92106731800
PO Box 1864PO Box 1864
Albany WA 6330Albany WA 6330
Contact: Will SingerContact: Will Singer
Tel: Tel: 0404 887 1930404 887 193
Email: wsinger@synergywest.com.auEmail: wsinger@synergywest.com.au
Web: www.synergywest.com.auWeb: www.synergywest.com.au