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Capex procurement

CAPITAL EXPENDITURE CASE STUDY  

Tendering and Negotiating Capex 

THE COMPANY  

A UK leading food manufacturing business with instantly recognisable brands and aggressive growth plans. 

THE SITUATION  

Due to capacity constraints, the company decided to build a new manufacturing facility and needed procurement support to help them tender and negotiate with suppliers for each work package. 

THE OBJECTIVE  

Maintain current specifications, reduce Capex cost by 3% and negotiate contract terms 

THE STRATEGY  

Engage multiple OEM’s and general equipment suppliers to provide equipment for the new manufacturing facility. Engaging a wide range of manufacturers provides greater visibility of market pricing for each work package 

THE APPROACH  

A one stage tender process was adopted with carefully selected manufacturers invited to participate; these suppliers were invited after a rigorous due diligence process. Negotiation plans, variables and tactics were developed in conjunction with the company. 

THE OUTPUT  

• 3.4% Savings 
• Extended Warranties 
• Low Down Payments 
• Consignment Stock 
• Free Critical Spares 

CONTACT GATEWAY PROCUREMENT 01482 645 844 | enquiries@gatewayprocurement.co.uk   

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