Capital Equipment Purchasing Optimizing the Total Cost of CapEx Sourcing

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Professional Supply Management
              Volume            22012
Capital Equipment PurchasingOptimizing the Total Cost of CapEx SourcingAuthors:

• Erik Hofmann,
• Daniel Maucher,
• Jens Hornstein,
• Rainer den Ouden
• …show all 4hide
  

ISBN: 978-3-642-25736-0 (Print) 978-3-642-25737-7  (Online)



Optimizing the Total Cost of CapEx Sourcing

Series: Professional Supply Management

Hofmann, E., Maucher, D., Hornstein, J., den Ouden, R.

2012, XI, 121 p. 60 illus.

ISBN 978-3-642-25737-7

  Immediately available per PDF-download (no DRM, watermarked)

About this book

• Shows, how challenges in capital equipment purchasing can be managed
•                                         Contains a comprehensive set of tools with numerous instruments and methods for capital equipment purchasing
•                                         The presented instruments and methods are explained with numerous examples
  

Capital equipment purchasing can significantly influence companies’ economic success. However, in many companies the degree of professionalism of this particular form of procurement has not yet reached the required level. Likewise, from a scientific perspective, the topic leads more of a “shadowy existence”. 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.
Due to these features, numerous challenges arise within the scope of capital equipment purchasing. 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.

Contents
ix
1 Introduction to Capital Equipment Purchasing

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