From cost reduction and restructuring to marketing and implementation, the Cygnet team will support and help you to achieve your goals. Whether you work for a private sector company or public sector organisation you only need to tell us what you believe are the issues which are inhibiting the success of your business and whatever the size of the problem we can help.
2. What is my aim?What is my aim?
To help you to achieve best value.To help you to achieve best value.
To successfully compete complex supply needs.To successfully compete complex supply needs.
To address problems in your procurement.To address problems in your procurement.
To suggest other business benefits.To suggest other business benefits.
3. How can I help?How can I help?
I have hands on experience in many sectors.I have hands on experience in many sectors.
I have led reverse auction development.I have led reverse auction development.
Leaders ask me for help on commercial issues.Leaders ask me for help on commercial issues.
I have direct hands on experience having managed aI have direct hands on experience having managed a
workforce of over 600 people at multiple locations.workforce of over 600 people at multiple locations.
4. Some of my positionsSome of my positions:
• CEO – Cygnet Consultancy Ltd - ConsultancyCEO – Cygnet Consultancy Ltd - Consultancy
• CEO - Group Supplies Plc – Leading UK RA providerCEO - Group Supplies Plc – Leading UK RA provider
• CEO - AWOI – One of the first UK internet sales portalsCEO - AWOI – One of the first UK internet sales portals
• CEO - Internet Marketing Management Plc –software specialistsCEO - Internet Marketing Management Plc –software specialists
• Founding Dir. - European Metal Recycling Ltd – One of the worlds largestFounding Dir. - European Metal Recycling Ltd – One of the worlds largest
recycling firms, which has a turnover of circa £3recycling firms, which has a turnover of circa £3 BillionBillion
• Opps. Dir. - Cooper GroupOpps. Dir. - Cooper Group – For over 20years I helped to grow this family– For over 20years I helped to grow this family
business until it became the largest UK metal recycling company.business until it became the largest UK metal recycling company.
Coopers merged with a smaller company to formCoopers merged with a smaller company to form
European Metal Recycling Ltd.European Metal Recycling Ltd.
5. Group Supplies PlcGroup Supplies Plc ((typical clients)
• BalfourBeattyBalfourBeatty
• Bax GlobalBax Global
• BechtelBechtel
• BMWBMW
• Compass GroupCompass Group
• EMREMR
• Hellman World WideHellman World Wide
• Holt JCBHolt JCB
• Pall CorporationPall Corporation
• P&OP&O
• ThyssenKruppAGThyssenKruppAG
• The Ministry of DefenceThe Ministry of Defence
• Her Majesty’s Revenue & CustomsHer Majesty’s Revenue & Customs
• The Home OfficeThe Home Office
• Dept of Constitutional AffairsDept of Constitutional Affairs
• The Metropolitan PoliceThe Metropolitan Police
• The Foreign & Commonwealth OfficeThe Foreign & Commonwealth Office
• HM TreasuryHM Treasury
• The Office of Government CommerceThe Office of Government Commerce
• HM Prison ServiceHM Prison Service
• The University of OxfordThe University of Oxford
• Nottingham UniversityNottingham University
• Birmingham City (largest UK council)Birmingham City (largest UK council)
• Numerous HospitalsNumerous Hospitals
• ETC….ETC….
Private Sector Public SectorPrivate Sector Public Sector
7. European Metal Recycling LtdEuropean Metal Recycling Ltd
• 150 Locations around the world150 Locations around the world
• Over 10 million tons of product per yearOver 10 million tons of product per year
• An environmentally motivated companyAn environmentally motivated company
• An annual turnover of circa $5 billionAn annual turnover of circa $5 billion
• As a founding director I set up their quality proceduresAs a founding director I set up their quality procedures
gaining ISO 9001 & 1401and promoted a rigorousgaining ISO 9001 & 1401and promoted a rigorous
health & safety policy with in-house traininghealth & safety policy with in-house training
• As their operations director I directly managedAs their operations director I directly managed
over 60 % of the company's operationsover 60 % of the company's operations
8. The Cooper GroupThe Cooper Group
Samples of contracts that I negotiated:Samples of contracts that I negotiated:
• £ 60 million 10-year contract with the Rover£ 60 million 10-year contract with the Rover
• Rolling contract with NissanRolling contract with Nissan
• Rolling contract with Nissan YamatoRolling contract with Nissan Yamato
• Disposal contract for Nuclear Electric (Magnox Plc)Disposal contract for Nuclear Electric (Magnox Plc)
• £100 million supply contract with ThyssenKruppAG£100 million supply contract with ThyssenKruppAG
Coopers Holdings Ltd 1987 –’94 Group Ops DirectorCoopers Holdings Ltd 1987 –’94 Group Ops Director
Coopers (Metals) Ltd 1975 – ‘87 Group Ops DirectorCoopers (Metals) Ltd 1975 – ‘87 Group Ops Director
Coopers (Metals) Ltd 1970 – ‘75 Local DirectorCoopers (Metals) Ltd 1970 – ‘75 Local Director
9. Reverse Auction DevelopmentReverse Auction Development
ThyssenKrupp - 150,000 employees in over 80 countriesThyssenKrupp - 150,000 employees in over 80 countries
At the turn of the Century ThyssenKrupp AG allowed me to useAt the turn of the Century ThyssenKrupp AG allowed me to use
their actual purchases to develop my reverse auction process.their actual purchases to develop my reverse auction process.
They gave me a free hand that resulted in the creation of unique RAThey gave me a free hand that resulted in the creation of unique RA
software and purchasing procedures.software and purchasing procedures.
My in-house reverse auction software was years ahead of its time.My in-house reverse auction software was years ahead of its time.
The trials were so successful that ThyssenKrupp issued a pressThe trials were so successful that ThyssenKrupp issued a press
release confirming that I had saved them 29%.release confirming that I had saved them 29%.
http://http://dlddld..bzbz/cA7sh/cA7sh
10. Some clients that I introduced to RAsSome clients that I introduced to RAs
• AramarkAramark
• AmaryllisAmaryllis
• Acquire ServicesAcquire Services
• Alternative NetworksAlternative Networks
• BMW (UK)BMW (UK)
• Barnet Enfield and Haringey (NHS)Barnet Enfield and Haringey (NHS)
• CalumetCalumet
• Cheltenham CouncilCheltenham Council
• DBC FoodserviceDBC Foodservice
• European Metal RecyclingEuropean Metal Recycling
• Gloucester (GPP)Gloucester (GPP)
• Grant ThorntonGrant Thornton
• Hammersmith (NHS)Hammersmith (NHS)
• London TaxisLondon Taxis
ETC - ETCETC - ETC
• Mayflower Vehicle SystemsMayflower Vehicle Systems
• MilklinkMilklink
• Ministry of DefenceMinistry of Defence
• The University of OxfordThe University of Oxford
• Newham (NHS)Newham (NHS)
• North Middlesex (NHS)North Middlesex (NHS)
• OGC Buying SolutionsOGC Buying Solutions
• Pall CorporationPall Corporation
• P&OP&O
• RUH Bath (NHS)RUH Bath (NHS)
• Schneider ElectricSchneider Electric
• Sims RecyclingSims Recycling
• ThyssenKrupp AG (UK)ThyssenKrupp AG (UK)
• Tube LinesTube Lines
• UK HydrographicsUK Hydrographics
• University of ExeterUniversity of Exeter
• Whittington NHSWhittington NHS
11. Reducing costsReducing costs
My largest publicised saving was £100 million + (My largest publicised saving was £100 million + ($155 million)$155 million) (43%)(43%)
This was a complex competition that was successful because I split up anThis was a complex competition that was successful because I split up an
existing single source contract into manageable portions.existing single source contract into manageable portions.
This enabled smaller companies to complete in tenders that wereThis enabled smaller companies to complete in tenders that were
structured to meet all of the suppliers needsstructured to meet all of the suppliers needs
The AuctionThe Auction
2,432 bids were received. The extension period was 13 hours & 452,432 bids were received. The extension period was 13 hours & 45
minutes with an hourly saving of circa $10. millionminutes with an hourly saving of circa $10. million
http://http://dlddld..bzbz//cAwTzcAwTz ..
12. What size are reverse auctions?What size are reverse auctions?
My largest auction was for £1.5 BillionMy largest auction was for £1.5 Billion
My smallest £20KMy smallest £20K
To save money you do not have to use an auction!To save money you do not have to use an auction!
I purchased 500 estate cars from a leading motor manufacturer whoI purchased 500 estate cars from a leading motor manufacturer who
had professed to have already given my client their rock bottom prices.had professed to have already given my client their rock bottom prices.
I competed the need between their sales and finance departmentsI competed the need between their sales and finance departments
using e-mail and telephone.using e-mail and telephone.
All parties knew that I would only buy from them:All parties knew that I would only buy from them:
I saved over $500,000!I saved over $500,000!
13. Air filters 36%
Aluminium 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 Products 19%
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%
Examples of savingsExamples of savings
(a small part of our 30% average)(a small part of our 30% average)
14. Positive points re an RAPositive points re an RA
(for the buyer)(for the buyer)
• Improves the cost of products/servicesImproves the cost of products/services
• Reduces negotiation process timeReduces negotiation process time
• Is an easy process to repeat with other productsIs an easy process to repeat with other products
• Encourages development of closer supplier relationshipsEncourages development of closer supplier relationships
• Raises competitivenessRaises competitiveness
15. Positive points re an RAPositive points re an RA
(for the supplier)(for the supplier)
• Improves discipline in the tendering processImproves discipline in the tendering process
• Encourages transparency of pricing and ability to react toEncourages transparency of pricing and ability to react to
competitors' pricescompetitors' prices
• Reduces negotiation process timeReduces negotiation process time
• Low entry costs & raises competitivenessLow entry costs & raises competitiveness
16. Negative points re an RANegative points re an RA
(for an incumbent supplier)(for an incumbent supplier)
• Risk of loosing a contractRisk of loosing a contract
• Have to explain how the contract worksHave to explain how the contract works
• Potential loss of margin and profitPotential loss of margin and profit
• May bring tension to an existing relationshipMay bring tension to an existing relationship
17. Example auctionsExample auctions Pan European TransportPan European Transport
The contract covered:The contract covered:
The movement of general stores and medical equipmentThe movement of general stores and medical equipment
between the UK and Germany, including a daily express runbetween the UK and Germany, including a daily express run
from Bicester in the UK to Dulmen in Germanyfrom Bicester in the UK to Dulmen in Germany
The movement of stores within North-West EuropeThe movement of stores within North-West Europe
The provision of transport services for the movement of stores fromThe provision of transport services for the movement of stores from
the UK, to Germany and to the Pan-Balkan States.the UK, to Germany and to the Pan-Balkan States.
Client quote “Following the auction, it was clear to thoseClient quote “Following the auction, it was clear to those
involved that the realised savings were far greater than expected”involved that the realised savings were far greater than expected”
http://http://dlddld..bzbz/cA74C/cA74C
18. ExampleExample The London UndergroundThe London Underground
(I saved $5 million on hourly consultancy rates)(I saved $5 million on hourly consultancy rates)
Tube Lines was owned by Bechtel & Amey and were in partnershipTube Lines was owned by Bechtel & Amey and were in partnership
with London Underground rebuilding thewith London Underground rebuilding the
Jubilee line, Northern line and Piccadilly line.Jubilee line, Northern line and Piccadilly line.
Andrew Geffryes, Head of Corporate Procurement commented:Andrew Geffryes, Head of Corporate Procurement commented:
““As Tube Lines had no direct previous experience we looked for a reliableAs Tube Lines had no direct previous experience we looked for a reliable
and trusted partner to lead us in the use of reverse auctions.and trusted partner to lead us in the use of reverse auctions.
We chose GSA and the initial trials proved very successful, this led to usWe chose GSA and the initial trials proved very successful, this led to us
extending our use of GSA to run a series of reverse auctions in both theextending our use of GSA to run a series of reverse auctions in both the
traditional commodity type areas as well as more specialist ones,traditional commodity type areas as well as more specialist ones,
achieving saving up to 42%”achieving saving up to 42%”
19. ExampleExample First UK Central Government RAFirst UK Central Government RA
66% savings ($1+Million)+11% betterment66% savings ($1+Million)+11% betterment
http://http://dlddld..bzbz/cA7mF/cA7mF
A resounding success for the client!A resounding success for the client!
““This is a fine example of a reverse auction achieving tremendousThis is a fine example of a reverse auction achieving tremendous
success and the DCG is delighted to have made such significantsuccess and the DCG is delighted to have made such significant
savings. The commercial staff adopted a dynamic approach insavings. The commercial staff adopted a dynamic approach in
selecting this method of purchasing and we will certainly be usingselecting this method of purchasing and we will certainly be using
the process again in the future when and where appropriate. I canthe process again in the future when and where appropriate. I can
thoroughly recommend the procedure ….”thoroughly recommend the procedure ….”
- Brigadier Little, Head of the Defence Catering Group- Brigadier Little, Head of the Defence Catering Group
20. ExampleExample AV auctionAV auction
We competed three existing contracts for the supply and installation ofWe competed three existing contracts for the supply and installation of
audio visual & equipment associated support services and videoaudio visual & equipment associated support services and video
teleconferencing (VTC)teleconferencing (VTC)
The participants could bid on some 200 lines and we had structured 1,000+The participants could bid on some 200 lines and we had structured 1,000+
price factors in the cost model.price factors in the cost model.
Circa 1,700 separate bids were placed across the baskets.Circa 1,700 separate bids were placed across the baskets.
The saving was over $6.3 million this being some 33.5% of projectedThe saving was over $6.3 million this being some 33.5% of projected
contract value compared with historic costs.contract value compared with historic costs.
The auction ran for nine hours into the extension periodThe auction ran for nine hours into the extension period
http://http://dlddld..bzbz/cA7q9/cA7q9
21. Testimonials
"I allocated a member from my team to work with GS to"I allocated a member from my team to work with GS to
identify areas of possible cost savings. At each stageidentify areas of possible cost savings. At each stage
of the process, GS summarized their findings for approval.of the process, GS summarized their findings for approval.
From the initial analysis that GS made, we agreed thatFrom the initial analysis that GS made, we agreed that
they would focus on the product areas of safety wear,they would focus on the product areas of safety wear,
packaging, oils & lubricants and welding. GS made apackaging, oils & lubricants and welding. GS made a
forecast at this stage of the likely cost savings."forecast at this stage of the likely cost savings."
We were very pleased with the results. The savingsWe were very pleased with the results. The savings
were 29% of the total tender value."were 29% of the total tender value."
Robert Soen,Robert Soen,
General Manager - ThyssenKrupp AutomotiveGeneral Manager - ThyssenKrupp Automotive
ThyssenKrupp AutomotiveThyssenKrupp Automotive
22. Testimonials
"I would like to thank Group Supplies for their support"I would like to thank Group Supplies for their support
and assistance to date and I look forward to workingand assistance to date and I look forward to working
collaboratively with you on promoting reverse auctionscollaboratively with you on promoting reverse auctions
as an alternative route to acquisition in delivering realas an alternative route to acquisition in delivering real
value for our forces.value for our forces.
Where the auction process has been utilised withinWhere the auction process has been utilised within
MoDMoD
it has consistently delivered results"it has consistently delivered results"
Grant Morris whenGrant Morris when
Director General - Commercial (Project Delivery)Director General - Commercial (Project Delivery)
The Ministry of DefenceThe Ministry of Defence
23. Testimonials
"Group Supplies has developed a unique procurement"Group Supplies has developed a unique procurement
process applicable across the whole spectrum ofprocess applicable across the whole spectrum of
procurement. They have successfully completed an initialprocurement. They have successfully completed an initial
project in liaison with our buyers, which produced savingsproject in liaison with our buyers, which produced savings
and are now involved in reviewing our activity relating toand are now involved in reviewing our activity relating to
lubrication oils.lubrication oils.
We are in the process of identifying a thirdWe are in the process of identifying a third
commodity for assessment as we develop our relationship.commodity for assessment as we develop our relationship.
The approach contrasts with traditional cost saving methodsThe approach contrasts with traditional cost saving methods
in the depth and scope of research and culminates in anin the depth and scope of research and culminates in an
innovative live trading floor generating cost reductionsinnovative live trading floor generating cost reductions
against bespoke tenders."against bespoke tenders."
David J Russell, Purchasing Manager (Indirect),David J Russell, Purchasing Manager (Indirect),
Swindon Pressings Ltd - a BMW Group CompanySwindon Pressings Ltd - a BMW Group Company
BMWBMW
24. Testimonials
To Dr Phillip Mason a colleague and a fellow director:To Dr Phillip Mason a colleague and a fellow director:
"I would like to thank both you and Charles for all your"I would like to thank both you and Charles for all your
hard work associated with this challenging project.hard work associated with this challenging project.
The solution you have come up with exceeded myThe solution you have come up with exceeded my
expectations and I am sure without your experience,expectations and I am sure without your experience,
knowledge and support we would not have been ableknowledge and support we would not have been able
to get the proposal to market in such an innovativeto get the proposal to market in such an innovative
way."way."
Simon GoswellSimon Goswell
Fuels Category Management TeamFuels Category Management Team
Defence Fuels GroupDefence Fuels Group
Defence Fuels GroupDefence Fuels Group