Capital Equipment Purchasing - Optimizing the Total Cost of CapEx Sourcing (Hardcover, 2012 ed.)

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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