Capital Equipment Purchasing Optimizing the Total Cost of CapEx Sourcing

Compared to other main groups of procurement, capital equipment features numerous characteristics that significantly impact the purchasing process. The process of purchasing capital equipment therefore requires specific attention and above all a systematic approach.  To overcome these challenges, a holistic process model and specific tools and methods for capital equipment purchasing are presented.

The following topics regarding capital equipment purchasing are presented:

•             Compliance management

•             Savings measurement

•             Life cycle costs and total cost of ownership

•             Determining the optimum useful life and replacement time

•             Real options approach for the evaluation of investment alternatives

•             Performance contracting

Readers are provided with a comprehensive and structured process model for capital equipment purchasing. The comprehensive set of methods including various instruments and methods presented in this book support the establishment of a professional capital equipment purchasing process.

Introduction to Capital Equipment Purchasing.-  Characterisation of Capital Equipment.-  Characterisation of Capital Equipment Purchasing.-  Typical Challenges and Possible Solutions in the Procurement of Capital Equipment.- Process for the Procurement of Capital Equipment.-  Instruments and Methods of Capital Equipment Purchasing in Terms of the Players Involved.-  Instruments and Methods of Capital Equipment Purchasing in Terms of the Characteristics of Procurement Objects.-                Overall Conclusions on Capital Equipment Purchasing.-                References.