CAPITAL EXPENDITURE CASE STUDY
Tendering and Negotiating Capex
A UK leading food manufacturing business with instantly recognisable brands and aggressive growth plans.
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.
Maintain current specifications, reduce Capex cost by 3% and negotiate contract terms
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
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.
• 3.4% Savings
• Extended Warranties
• Low Down Payments
• Consignment Stock
• Free Critical Spares