Capital Equipment Purchasing: Optimizing the Total Cost of CapEx Sourcing

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Springer Science & Business Media, Apr 23, 2012 - Business & Economics - 124 pages
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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.

 

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Contents

Chapter1
2
Chapter2
7
Chapter3
13
Chapter4
18
Chapter5
23
Chapter6
39
Chapter7
67
Chapter8
112
References
117
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About the author (2012)

The authors of this series are researchers of the University of St.Gallen, scientists of other leading international research centers with the focus on procurement and supply chain management, consultants of Kerkhoff Consulting and practitioners. As a result of the frequent formation of mixed teams, consisting of authors with theoretical and practical background, a close link between these disciplines occurs.

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