Total Cost of Ownership (TCO) allows companies to account financially for each activity along the supply chain including costs associated with the acquisition of materials, transportation, storage, and the selling of purchased goods or services. The goal is to equip companies to make informed strategic sourcing decisions. The TCO Calculator facilitates a side-by-side comparison of suppliers, analyzing multiple sourcing possibilities on a global scale. TCO helps minimize total costs while maximizing value to the customer.
- Review key elements of TCO
- Contrast Piece-Part Variance method with TCO costing
- Understand the importance of implementing an effective TCO strategy
- Learn how to identify and measure TCO cost drivers
- Demonstrate the use of the TCO calculator
- Learn how to input data, interpret results and use the output of the analysis to make strategic sourcing decisions.