CAPEX Procurement: The Underrated Success Factor in German Projects

In many companies, procurement tends to focus on OPEX – operational expenses. However, underestimating CAPEX procurement, the acquisition of capital goods, can lead to long-term inefficiencies, budget overruns, and delays in strategic projects. Especially in Germany, where industrial projects are often complex, highly regulated, and capital-intensive, smart CAPEX procurement is crucial for success. It’s not just about finding the cheapest supplier – quality, lifecycle costs, lead times, and contractual risks must be strategically managed. Poor decisions in the early planning phase are often difficult, if not impossible, to correct later. Best practices? Involving procurement early in project planning, conducting clear total cost of ownership (TCO) analyses, and building strategic supplier partnerships. Companies that view CAPEX procurement not just as a cost factor but as a strategic lever secure long-term competitive advantages.