Capital investments optimization yields significant savings

Food4Thoughts

How spending and sourcing of capital investments (manufacturing & material handling equipment and buildings) can be optimized.

Across all industries, hundreds of billions of euros are invested each year in new production technologies and facilities globally

New products, e-mobility ramp-up, global footprint, new trade policies (local for local) and capacity expansions across all industries require significant capital investments (CAPEX) and force firms to continuously improve competitiveness and cash flow.

How to define best practice target costing for capital investments and how to realize them sustainably

Rising procurement volume with a complex and heterogeneous technology portfolio
Increasing complexity and cost of maintenance
Lack of cost transparency
Procurement largely takes place using commercial levers only
True total cost of ownership (TCO)

How to optimize cash for capital investments by getting best value for money

What are the best practice solutions for manufacturing equipment & buildings?
What is the cost impact of changing production concepts?
Where should manufacturing facilities be located?
How do we mitigate risks pertaining to excess capacity and ramp-up phase?

Focus of TC investment optimization is production equipment along the value-add process

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Cost Engineering of capital investments

We are well experienced in reducing the cost of production facilities and equipment across production technologies and industries on a global scale.

We have developed a specific cross-functional approach and a set of tools to optimize the costs of machinery and equipment as well as buildings.

We know exactly what levers to apply across the entire capital investment procurement process.

We calculated, estimated, and negotiated the best cost for machinery and equipment, material handling, commercial component parts and buildings. In addition, we conducted cost workshops with suppliers.

Six (6) levers are identified with different tasks and possibilities to optimize the cost situation of an investment along the process

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The CE-Invest approach has led to savings of -30% in average across industries and technologies

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With our proprietary CAPEX calculation and estimation approach & software we can easily identify cost savings potentials and help our clients to realize them.

Average savings of 30 percent realized
Development of best practice cost base for machinery and equipment, conveyor systems, buildings, and commercial component parts
Conclusion of various multi-year sourcing agreements with suppliers to reduce transaction cost and maintain cost level in the long term

Speak to an expert

Working with the most qualified Tsetinis Consultants is key to your success.

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

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