Understanding the Significance of Capital Procurement
Capital procurement is a critical aspect for capital-intensive owner firms, where the type of capital project work can vary substantially from year to year. Without a historical baseline, it becomes essential to forecast planned future spending over the next few years. Different projects may have unique service and supplier requirements, with non-price considerations playing a significant role in cost reduction, particularly in engineering and construction services. Internal project management processes also differ significantly based on project size, emphasizing the importance of equipment selection and design decisions on spare part inventory levels and operability.
GEP’s Expertise in Strategic Sourcing for CapEx Projects
GEP’s strategic sourcing expertise extends to capital procurement, encompassing a wide array of specialized services such as low-cost country sourcing, value engineering, feature benchmarking, payment structuring, and Total Cost of Ownership (TCO) analysis. Leveraging a vast supplier database and real-time market research, GEP assembles a superior pool of suppliers for evaluation. The company guides package structuring based on business priorities, balancing time-efficient turnkey packages with cost-efficient itemized BOM-based packages. From creating comprehensive RFP documents to leading supplier negotiations, GEP ensures the selection of best-value solutions for capital projects. Commercial term negotiations, contracting support, and expediting services are also part of GEP’s comprehensive Capital Procurement Expertise.
Extensive Solution Offerings by GEP SMART in Procurement
Aside from capital procurement, GEP SMART offers a spectrum of procurement solutions, including procurement consulting, digital transformation, strategic cost management, opportunity assessment, and supply chain risk management. The software arm provides procurement software, supply chain software, source-to-contract solutions, procure-to-pay platforms, and various tools for supply chain planning, collaboration, visibility, and control. Moreover, GEP’s managed services cover areas like strategic sourcing, category management, procurement support, supply chain outsourcing, planning, forecasting, inventory management, and logistics management, catering to diverse business needs across industries.