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Follow the Follow the ccountry ountry ccodeode
and obtain a winand obtain a win--win win rresultesult
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
Our farming background shows us that:Our farming background shows us that:
• NNatural atural disastersdisasters are serious lessons are serious lessons
• Nature promotes growth - so we listen & learnNature promotes growth - so we listen & learn
• We sWe support our neighbours and they support usupport our neighbours and they support us
• We bWe barter but arter but do notdo not batter – we build las batter – we build lasting ting relationshipsrelationships
• SSsuccess come from our successsuccess come from our success
• We must uWe must use the latest technologyse the latest technology
Farming mirrors businessFarming mirrors business
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
How does this How does this aaffect ffect yyou?ou?
As in agriculture wAs in agriculture we all need goals:e all need goals: • A A farmfarm is unique is unique y yetet its aims are the same as yours its aims are the same as yours
• It needs to cIt needs to control costsontrol costs as a as a penny saved is a penny made penny saved is a penny made
• It must It must be be commercially motivatedcommercially motivated
• It uIt uses the latest technologyses the latest technology (a combine harvester not a sickle) (a combine harvester not a sickle)
• Its animals will survive lowerIts animals will survive lower costs, costs, bbut not lower standards ut not lower standards
Cygnet Consultancy Ltd © 201Cygnet Consultancy Ltd © 20122
The The pparntership arntership aapproachpproach::
Help your nHelp your neighbour eighbour and she will help you:and she will help you: • Benchmark your costs with local firms (this helps both of you)Benchmark your costs with local firms (this helps both of you)
• When you help others they will help youWhen you help others they will help you
• You rely on your suppliers aYou rely on your suppliers ass they must rely upon you they must rely upon you
• Barter the price down but do not kill off the suppliersBarter the price down but do not kill off the suppliers
• Remember a good crop will not grow on unfertile groundRemember a good crop will not grow on unfertile ground
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
Use technology - The reverse auction:Use technology - The reverse auction:
• Any supply can be auctioned when specified correctlyAny supply can be auctioned when specified correctly
• A successful auction is a self funded exerciseA successful auction is a self funded exerciseee
• An auction is more efficient than traditional tender methodsAn auction is more efficient than traditional tender methods
• Auctions are totally transparent to the buyer & sellerAuctions are totally transparent to the buyer & seller
• Auctions suppliers use secure & confidential processesAuctions suppliers use secure & confidential processes
• Reverse auction use is extensive in Reverse auction use is extensive in privateprivate & & publicpublic organisationsorganisations
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
A useful tool - The reverse auction:A useful tool - The reverse auction:The reverse auction step by stepThe reverse auction step by step……
Step 1prioritise the products or services
for auction
Step 2develop the specification
Step 3source the relevant suppliers
Step 4gain the suppliers’ commitment
Step 5set up the auction
Step 6undertake the auction
Step 7complete and report final negotiation
anonymous lowest bid visible…real-time
countdown…
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
A A ggraphic raphic oof f tthe he pprocess:rocess:
Includes: -
Planning Data mining Supplier selection Supplier training Tender specification Tender construction Technical assistance Legal compliance
10% The llve trading floor(The reverse auction)
Pu
rchases
Su
pp
liers
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
90%
An auction in action:An auction in action:
Explaining an auction live to guests from all parts ofExplaining an auction live to guests from all parts of our ourGovernment including Government including aa leading Army General leading Army General
We constructed and executed this We constructed and executed this Pan - Government Pan - Government tender / auction tender / auction & saved & saved 43% 43% circa $1 circa $1665 million5 million
.
Cygnet Consultancy Ltd © 201Cygnet Consultancy Ltd © 20122
We have helped organisations to succeed in many ways including saving them $ millions.
We are here to help you
Cygnet Consultancy Ltd © 2012Cygnet Consultancy Ltd © 2012
Charles Eddolls CeoCygnet Consultancy Ltd25 North Wall,Cricklade,Swindon,Wiltshire SN6 6DU - EnglandTel +44 (0) 1793 752 485 Fax +44 (0) 1793 687 350E-mail [email protected] Site www.cygnetconsultancy.com