So your enterprise is operating over twenty manufacturing and assembly plants worldwide, servicing over 5,000 customers in more than 150 countries. Undoubtedly, you are dealing with big figures in the procurement of capital equipment and maintenance.
You need someone to manage and streamline this operation. Is there a role that can oversee all the moving parts in dealing with so much and of so much importance?
The role you are looking to fill is that of a CapEx Manager.
CapEx Managers are becoming a high-ticket item for enterprises where capital expenditure (CapEx) is a significant operational component. Organizations that implement CapEx to maximize capital programs and projects are working to reduce spending and increase ROI. And, they need someone to actually make this happen.
CapEx investments need to be managed as they determine how much a company is investing in existing and future assets for the maintenance and growth of a business. To ensure the financial health of a company, there needs to be a system in place that enables the best decisions to be made and the right processes to be in place for high-cost investments. So, CapEx processes – from beginning to end, need to be managed to ensure there is no financial drain on the enterprise.
Let’s take a look at the role of the CapEx Manager so that you understand better what to look for when hiring for the role.
The CapEx Manager is responsible for administrating all the processes that are associated with the procurement of capital investments cost-effectively, to the highest quality, and by keeping in accordance with timeframes. The result? Savings of up to millions of dollars for your enterprise.
On the surface, this is the primary goal. But, forward-thinking enterprises are spending money to ensure that all components of the CapEx process are running seamlessly by aiming higher.
The role of the CapEx Manager calls upon the management and the streamlining of CapEx processes. To achieve this, the manager needs to have impeccable soft skills to effectively communicate with stakeholders – those in manufacturing, product, and process engineering, and the legal department.
At top enterprises, the CapEx Manager ensures that the global footprint of the manufacturing facilities is reduced; this way, procurement of equipment and services are delivered in accordance with corporate responsibility.
To save millions, there are specific duties that need to be taken care of.
Let’s take a closer look.
When hiring a CapEx Manager, make sure that they excel at working closely in a team environment. Leading enterprises make sure that the role is filled by someone who can work with product, process, and plant engineering and legal departments using effective communication as both performance expectations for equipment and commercial terms and conditions aim at mitigating risk.
The CapEx Manager needs to source potential equipment suppliers and assess their capabilities. She has to establish and foster relationships with equipment providers to ensure the attainment of enterprise objectives and the establishment of competitive bidding environments.
Another responsibility is the solicitation of RFPs, analyzing the results, and presenting them to internal customers and decision-makers. In cooperation with the legal department, the role is to be filled by someone who can administer contracts for the purchase of CapEx expenditures.
There also needs to be proactivity in exploring new equipment and processing methods for continuous improvements in manufacturing equipment. The collection and publication of data relating to CapEx purchases need to also be overseen. Finally, monthly reporting activities need to be prepared and the status of implementation projects and expenditures need to be continuously updated.
Analyst bottom line
As you can see, there is a lot to do.
CapEx projects could go terribly wrong when things like cost, market conditions, and future implications aren’t taken as factors leading to significant expense overruns. That’s why finances must be managed and are imperative to budget, plan, and analyze assets effectively (the CapEx Manager needs to work closely with Finance to ensure this.)
When hiring a CapEx Manager, ensure that he or she takes it into her hands to manage the entire capital expenditure portfolio to enable your business to grow by helping YOU make the right and best investment decisions.
