Total Cost of Ownership (TCO) – Supply Chain Strategy (Mansfield)

Often purchase cost or landed cost is the only consideration when making purchase decisions. Total Cost of Ownership (TCO) gives companies the ability to account financially for each activity along the supply chain, including costs associated with the acquisition of materials, transportation, inventory, storage, expediting and oversight. TCO helps companies make strategic sourcing decisions and the TCO Calculator can facilitate side-by-side comparisons of up to 4 suppliers, analyzing multiple sourcing possibilities on a global scale.