Phillips Consulting<br />Specialist Procurement Consultants<br />
Cost<br />Service<br />Phillips Consulting<br />Specialist Procurement Consultants<br />Objective<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />The Benefits of Cost Reduction<br />An Illustration<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Take a typical company:<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />What happens if we can reduce<br />material costs by just...
Phillips Consulting<br />Specialist Procurement Consultants<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />If the same profit increase were to<br />be generated by ...
Phillips Consulting<br />Specialist Procurement Consultants<br />28.8%<br />6:1 ratio<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />At the existing 8% profit margin:<br />Profit increase = ...
Phillips Consulting<br />Specialist Procurement Consultants<br />This represents a sales increase of 28.8%:<br />28.8% =  ...
Phillips Consulting<br />Specialist Procurement Consultants<br />Why use the Phillips Consulting<br />route to cost saving...
Phillips Consulting<br />Specialist Procurement Consultants<br />Well, for a start,<br />what do our clients say?<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />You can find further client<br />comments on our website ...
Phillips Consulting<br />Specialist Procurement Consultants<br />Other reasons to use the<br />Phillips Consulting<br />ro...
Phillips Consulting<br />Specialist Procurement Consultants<br /><ul><li> Proven
 Risk-free
 Self-financing
 Transparent
 Focussed
 Fast
Guaranteed results</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Proven<br /><ul><li>...
 Millions of pounds saved
 Satisfied clients include:</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Solartron M...
Phillips Consulting<br />Specialist Procurement Consultants<br />Risk-free<br /><ul><li> Highly experienced consultants
 Board-level composure
 Qualified engineers
 Unrivalled expertise in negotiation</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Se...
 We pay for ourselves many times over
 We have never had an “out of pocket” client</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants...
 You can stop our work at any time
 There are no tantalizing mysteries</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Foc...
 No meetings to attend
 No staff issues
 No historical issues
 No supplier relationship problems
Simply focussed expertise</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Fast<br /><ul...
 Savings often start flowing from month one
 Delays cost money!</li></li></ul><li>Phillips Consulting<br />Specialist Procurement Consultants<br />Guaranteed Results<...
Phillips Consulting<br />Specialist Procurement Consultants<br />What about fees?<br />
Phillips Consulting<br />Specialist Procurement Consultants<br /> Daily consultancy rate<br />plus<br /> Cost-reduction sh...
Phillips Consulting<br />Specialist Procurement Consultants<br /> £350 per day<br />plus<br /> 25% of first year savings<b...
Phillips Consulting<br />Specialist Procurement Consultants<br />Why do we think we can get results in your business?<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Typical Breakdown of a Purchasing Manager’s Time<br />
Phillips Consulting<br />Specialist Procurement Consultants<br />Out of necessity, today’s purchasing manager is like a de...
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Presentation Of Phillips Consulting

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

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