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Cygnet Buyers Guide – Part One “Five Secret Strategies For Saving Millions” Cygnet Consultancy Ltd © 2013

Presentation a Buyers Guide

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Cygnet Buyers Guide – Part One “Five Secret Strategies For Saving Millions”

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Page 1: Presentation a Buyers Guide

Cygnet Buyers Guide – Part One

“Five Secret Strategies

For Saving Millions”

Cygnet Consultancy Ltd © 2013

Page 2: Presentation a Buyers Guide

Farming has shown me that :

When you help others they will help you:

• My raison d’être is to supply self help and support

• Provide guides that reflect actual experiences

• To help your friends circularize this presentation

• The savings are scalable and will benefit all

Cygnet Consultancy Ltd © 2013

Page 3: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

Item One - Contracted Professionals:

Tube Lines asked for help (The company was jointly owned by

Amey plc and the Bechtel Group)

I competed their needs for professional services: Project managers, building surveyors architects, risk,

value, civil, structural and mechanical engineers

I saved them more than $5 million

The lesson – when they are addressed in a commercial way, professional services can be successfully competed

Page 4: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

Item Two - Logistics :

I competed a world wide logistics need and:

• Simplified the processes

• Highlighted that existing suppliers, that were claiming to be loosing money, were in fact profitable

• Reduced our client’s costs by $millions

• Improved the contracted services

The lesson – Understand your suppliers needs in detail and you will be able to improve the commerciality of your supply contracts

Page 5: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

Item Three - The Fallacies :

It often pays to view suppliers with a jaundiced eye assome of the fallacies put forward by suppliers are:

• The Big is Beautiful & The Economy of Scale Fallacies

(International suppliers are always capable of offering the lowest prices but seldom do)

• The Market Share Fallacy- (Dominant manufacturers must offer the best prices)

The lesson – Encourage your SME suppliers as they keep contracts competitive

Page 6: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

Item Four - Savings on Branded Products:

Seriously investigate the supply market:

• Monitor the progress of your selected suppliers

• See who is growing their market share

• In your competitions introduce new suppliers

The lesson – It pays to involve suppliers new to you and to remember that discounts of up to 50% are often available

Page 7: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

Item Five - Leverage Buying achieves lower cost?

There is a widely believed misconception!

• You can increase your costs if the supply contract is too large as it reduces competition

• Combining supplies can encourage increases in price

• Organizations that you work with may have poor payment records that will affect your buying terms

The lesson – Benchmark but do not enter into blind agreements

Page 8: Presentation a Buyers Guide

Cygnet Consultancy Ltd © 2013

I have helped organizations succeed in many ways including saving them millions of dollars

If you need advice I would be pleased to help

Charles

Charles Eddolls CEOCygnet Consultancy Ltd

25 North Wall,Cricklade,Swindon,Wiltshire

SN6 6DU - EnglandTel +44 (0) 1793 752 485

Fax +44 (0) 1793 687 [email protected]

www.saving.with-charles.com

(See our PDF for more detail)