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.
We leverage our extensive supplier database as well as live project-specific market research to put together the best possible pool of suppliers together for evaluation. We also identify and select top suppliers, structure project packages, create detailed RFPs, and negotiate best-value solutions.
CAPEX: Strategic Considerations
Capital is highly strategic for owner firms, with project types varying annually. Without reliable historical baselines, companies focus on 2-3 year planned spending. Projects demand diverse service and supplier approaches, where non-price factors drive total cost reduction in engineering and construction. Equipment selections impact spare part inventories, and strong user influence is critical in supplier selection, recognizing that internal project management processes differ between small and large initiatives.
Why GEP
Cost Reduction
- Reduced costs through competitive bidding
- Decreased labor costs through improved productivity and re-engineered project processes
- Reduced rework and scope/budget change orders
- Increased value awareness and value engineering process
Cycle Time Reduction
- Reduced coordination time required through consolidated supply base
- Smooth start-up and commissioning
- Decreased waiting period for realizing ROI through earlier start-up
- Reduced capitalized interest costs
Quality Customer Satisfaction
- Well-planned start-up and commissioning
- Performance measures and focus on continuous improvement
- Quicker access to capable resources through supplier
- Improved safety performance
