SCM CAPEX Procurement Specialist

Function: CAPEX Procurement

Designation: Manager / Sr. Manager SCM – CAPEX Procurement

Location: Hyderabad, India / Corporate Office with Plant & Project Travel

Reporting: Head – SCM / General Manager – SCM

Experience: 6–8 Years

Industry Preference: Manufacturing / Steel / Infrastructure / Automotive / Engineering / EPC / Industrial Projects

2. Job Purpose

Responsible for end-to-end procurement of Capital Expenditure (CAPEX) items, plant machinery, equipment, projects, civil works, utilities and engineering packages, ensuring optimum cost, quality, delivery, technical compliance and commercial terms.

The position will work closely with Engineering, Projects, Plant Operations, Finance, QA/QC, Maintenance and Management to convert CAPEX requirements into commercially competitive and technically compliant purchase orders/contracts.

3. Key Responsibilities

A. CAPEX Procurement Strategy

Understand annual CAPEX budget and develop procurement plans for approved projects.

Prepare procurement strategy based on value, criticality, lead time, technology and supplier availability.

Identify opportunities for cost reduction, standardisation, value engineering and alternate sourcing.

Develop domestic and international supplier base for critical CAPEX equipment.

Conduct market intelligence for machinery, equipment, technology, raw materials and project services.

Benchmark prices with previous purchases, market rates, competitor/OEM references and alternate technologies.

B. RFQ & Vendor Development

Prepare detailed RFQs in coordination with Engineering/Projects.

Identify and qualify suitable OEMs, authorized dealers, EPC contractors and specialist vendors.

Develop alternate vendors to avoid single-source dependency.

Conduct vendor capability assessment including manufacturing capacity, QA systems, installed base and financial/commercial capability.

C. Techno-Commercial Evaluation

Coordinate with Engineering/Projects for technical evaluation of offers.

Prepare comparative statements (CS) and techno-commercial evaluation.

Prepare TCO (Total Cost of Ownership) wherever applicable.

Identify deviations, exclusions and commercial risks in vendor quotations.

Ensure commercial comparison is made on a like-to-like basis.

D. Negotiation & Cost Reduction

Commercial negotiations with OEMs, contractors and suppliers.

Negotiate : Equipment price, Project cost, Freight, Payment terms, Advance, PBG/ABG, Warranty, LD, Installation/commissioning, AMC

Conduct structured negotiations using should-cost, market benchmark and previous purchase data.

Achieve measurable annual CAPEX procurement savings.

Document negotiation history and final commercial terms.

E. Management Approval

Prepare CAPEX procurement approval notes for management.

Ensure procurement is within approved CAPEX budget and delegated authority matrix.

F. PO / LOI / Contract Management

Prepare and release PO/LOI in coordination with Purchase, Legal, Finance and Engineering.

Ensure all agreed commercial and technical conditions are incorporated.

Manage contracts for Machinery, Equipment, Civil works, PEB ,Electrical works, Mechanical works, Utilities, EPC packages,Installation & commissioning

Ensure appropriate contractual protections such as ,PBG, ABG, LD, Warranty, Retention, Performance guarantee, Insurance, Defect liability period

G. Project & Delivery Monitoring

Track CAPEX procurement from PO placement through commissioning.

Maintain CAPEX procurement tracker

Coordinate with suppliers and project teams to control delays.

Escalate critical delivery and execution issues to management.

H. Inspection, Installation & Commissioning

Coordinate with QA/QC and Engineering for:

Pre-dispatch inspection

FAT

Third-party inspection

Material inspection

Documentation

Ensure equipment reaches site as per project schedule.

Monitor installation and commissioning.

Ensure performance trials are completed before final commercial closure.

Coordinate closure of punch points and pending documentation.

I. Commercial & Contract Closure

Verify vendor invoices against PO/contract milestones.

Coordinate with Finance for advance adjustment and payment release.

Ensure recovery of LD/other contractual claims wherever applicable.

Close PO/contract after completion of contractual obligations.

4. Vendor Management

Develop and maintain an approved CAPEX vendor database.

Conduct supplier capability and capacity assessments.

Evaluate supplier performance.

Develop alternate/backup sources for critical equipment.

Conduct vendor visits and factory audits when required.

Maintain supplier performance scorecards.

6. Key Interfaces

The position will closely coordinate with:

Internal

Engineering

Projects

Plant Operations

Maintenance

Production

QA/QC

Finance

Legal

IT

EHS

Management

External

OEMs

EPC contractors

Consultants

Authorized distributors

Fabricators

Civil contractors

Inspection agencies

Logistics providers

7. Required Technical & Commercial Skills

Technical

Understanding of industrial machinery and equipment.

Ability to read basic engineering specifications and drawings.

Understanding of project execution and equipment commissioning.

Knowledge of electrical/mechanical/civil CAPEX packages.

Understanding of quality and inspection requirements.

Familiarity with Indian standards and relevant international standards.

Commercial

Strong negotiation skills.

Cost analysis and price benchmarking.

TCO analysis.

Contract management.

Understanding of GST, freight and logistics.

Payment-term and working-capital analysis.

Knowledge of PBG/ABG/LD/warranty/retention clauses.

Ability to identify commercial risks and exclusions.

Systems

SAP/ERP – PR, RFQ, PO and GRN processes.

Advanced MS Excel.

PowerPoint for management presentations.

Procurement dashboards and MIS.

Basic understanding of e-procurement systems.

8. Key Performance Indicators – KPI

KPI Suggested Measurement

CAPEX Savings Negotiated savings vs benchmark/initial quotation

Budget Adherence CAPEX procurement within approved budget

Procurement Cycle Time PR to PO/LOI

On-Time Delivery PO delivery vs committed date

Vendor Development Alternate/qualified vendors developed

Cost Benchmarking % major CAPEX items benchmarked

Contract Compliance PBG/ABG/LD/warranty compliance

Project Support Procurement milestones achieved as per project schedule

Quality Vendor-related quality issues/rejections

PO Closure Timely completion of commissioning and contractual closure

Working Capital Improvement through payment/credit-term negotiation

TCO Optimization: Reduction in lifecycle/operating cost

9. Candidate Profile

Education

Essential:

B.E./B.Tech – Mechanical / Electrical / Civil / Industrial / Production Engineering

Preferred:

MBA/PGDM – Supply Chain / Procurement / Operations

Experience

6–12 years of procurement experience with significant exposure to CAPEX procurement.

Preferred experience in:

• Manufacturing plants
• Steel/metal industry
• Infrastructure
• Automotive
• Engineering projects
• EPC
• Industrial projects