MAKING LONG-TERM INVESTMENT DECISIONS
Capital Expenditures (CapEx) tie up capital in the company in the long term. In contrast to Operational Expenditures (OpEx), their potential for flexibility is limited, i.e. the ability to adjust to short-term fluctuations in the market. At the same time, considerable burdens can result if CapEx-related market forecasts do not materialize. Effective CapEx optimization counteracts this.
With ROI-EFESO you can make the most of your business investments. Together, we first find hidden capacities to reduce investments to a minimum. We then optimize the remaining investments in terms of technology deployment, flexibility and sustainability.
As an international operations consultancy, we assess capital deployment from the entire value chain. We know what makes these deployments successful - and what does not. With our CapEx experts, you can transform your capital investments into strategic assets.
Dr. Thomas Troll, Senior Vice President, ROI-EFESO
Use effective levers to keep an eye on long-term investments in highly automated production. With ROI-EFESO, you can reduce and avoid costs by implementing these and other approaches.
In manufacturing companies, forecast capacity requirements and asset age are among the key CapEx drivers. Beside other aspects, this needs to be checked:
Efficiently used space is an alternative to costly extensions or new building projects. You can therefore minimize your total investment by answering the following questions:
Not every product needs to be manufactured in a highly automated way - especially not if production has been outsourced to best-cost countries. Helpful questions are:
Andrea Montermini, Vice President & Managing Director Western Europe, EFESO
Companies that deal intensively with sustainability issues and specifically with their carbon footprint are realizing that they need to manage their capital expenditure differently than before. In some cases, access to CapEx funds is even strictly tied to contributions to the achievement of sustainability goals.
With ROI-EFESO you can develop your CapEx management into a driving force in fulfilling this task. Focal points can include:
Energy-efficient technologies should be considered when upgrading existing machinery and equipment. Appropriate motors, HVAC systems (heating, ventilation and air conditioning), lighting or air pressure systems can provide a significant ROI in terms of energy costs and consumption.
In this context, progressive companies identify inefficient processes and areas in energy audits. This enables them to make more targeted and profitable investment decisions for the improvements.
To reduce a company's CO2 footprint, investments in efficient means of transport and digitalization technologies are generally necessary. Further investment decisions need to be made in supplier management.
Examples in technology include a supply chain control tower to minimize risks and systems to accurately record and report on key sustainability figures.
In the context of the circular economy, companies can achieve long-term cost savings through efficient use of resources. Recycling materials, for example, reduces dependence on expensive raw materials and vulnerability to price fluctuations on the raw materials markets.
Perspectives and points of reference for sustainable CapEx optimization are summarized in this issue of our customer magazine DIALOG.
A plant and mechanical engineering company had to ensure its competitiveness. ROI-EFESO identified all the adjustment screws for the necessary changes at a production site in Germany and got the turnaround going with a multi-layered restructuring approach.
Champions do not rest contentedly with their success, but always have their sights set on the next milestone. A technology group with around 20,000 employees at over 16 locations worldwide is also orienting itself in the direction of such a “North Star”. His starting points: an operational strategy and the initiatives derived from it, which should be implemented at every location in order to make them even more efficient.
Cost transformation from premium to volume provider. Mass manufacturers who expand their Product portfolio into higher price segments are not uncommon. A premium manufacturer of refrigeration appliances, on the other hand, takes the opposite approach. What seems banal from a technological point of view is an enormous challenge from a cost perspective. ROI-EFESO accompanied the company in this demanding transformation project.
The Italian group Marcolin S.p.A. has been designing, manufacturing and selling sunglasses and optical lenses for well-known brands such as Tom Ford, Bally, Moncler, Sportmax and Ermenegildo Zegna for 60 years. In 2018, she sold more than 14 million pairs of glasses through 150 distributors in 125 countries. Optimal management of the fashion company's international supply chains and production processes is correspondingly important.
With hard targets for the entire operations area, a valve manufacturer is aligning a plant location for the future - and thus securing the site in Germany. Together with ROI-EFESO, the company restructures its manufacturing and logistics and achieves, among other things, an OEE of more than 85%.
A dairy group identifies the topic of energy efficiency as a lever to cushion cost pressure from falling production volumes. The case study explains, how the company determines with ROI-EFESO suitable starting points for one of its plants. The potential of the measures in terms of possible energy savings, their CapEx and their amortization are specifically quantified.
