Capital is viewed as highly strategic in nature for all capital-intensive owner firms.
- Type of capital project work varies greatly from year to year
- Historic baseline does not exist, must look for planned future spending over the next two to three years
- Different types of projects may have very different service and supplier capability requirements
- In the service areas, engineering and construction, non-price considerations are significant drivers of total cost reduction
- Internal project management processes will differ greatly for small vs. large capital projects
- Equipment choice and design decisions can have a huge impact on spare part inventory levels and operability/maintainability
- High degree of user influence (internal engineering staff) required in the selection of supply base
Capital Procurement Expertise at Every Step
GEP’s extensive expertise in strategic sourcing covers all the nuances of capital procurement including low-cost country sourcing, value engineering, feature benchmarking, payment structuring and Total Cost of Ownership (TCO) analysis:
- Leveraging our extensive supplier database as well as live project-specific market research to put together the best possible pool of suppliers together for evaluation
- Guiding package structuring for the project depending on business priorities, determining the optimal mix between time-efficient full turnkey packages and cost-efficient itemized BOM-based packages
- Driving the creation of all RFP documents with a sharp focus on clear scoping of work, defining responsibility and accountability, getting visibility into supplier expertise and cost structures, etc.
- Executing RFP process and leading supplier negotiations to arrive at best-value solutions for the project
- Negotiating uniform, favorable commercial terms, contracting support and expediting support