Capital Equipment Price Negotiation Strategy

Capital Equipment Price Negotiation Strategy

About the project: This Switzerland based conglomerate specialises in delivering effective procurement solutions to global energy companies. The project required strategic intelligence with respect to oil & gas capital equipment strategic sourcing and procurement, particularly compressors, pressure vessels, pumps, rigs and turbines.

The overall intelligence included capital equipment contracts analysis spanning 10 year period, top suppliers’ competitive dynamics, cost break-down analysis along with drivers, price trend overtime and across regions and price response to change in technical specifications. Based on this intelligence, price negotiation strategies were developed along with intended potential savings. Our role in the project was primarily conduction overall secondary research, contracts research and analysis and top supplier margin estimation and analysis.

About the client: The company is a major engineering and procurement services company headquartered in Switzerland. The company operates primarily in the Power and Oil & Gas sectors, and has extensive experience in the areas of engineering services, energy project development and control, EPC, PMC capabilities, procurement and strategic sourcing, and providing all these services while ensuring highest standards of safety, quality and logistics.


Posted on

September 20, 2016

ENVECOLOGIC is a fast growing new age research and consulting firm focusing on providing energy and sustainability solutions. The name itself, which is a synthesis of ‘Environment’ and ‘Economic Logic’, conveys our area of expertise. The present age is characterised by multi-dimensional problems emerging everyday due to depleting resources, global warming, climate change and an unstable energy sector. We seek to deep dive into understanding those challenges and find solutions which make economic sense.