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Total cost of ownership(TCO) (Determining what costs to include in the…
Total cost of ownership(TCO)
Use of TCO
Strategic rather than tactic tool
Determining what costs to include in the analysis
Landed costs
Purchase price
Transportation cost
Customs and related costs
Inventory costs
Outsourcing costs
Monitoring and control costs
Some costs might be omitted
Financial cost or opportunity costs
Sales and marketing
Administrative costs
Reverse SC
Insurance and risk management
Taxes and foreign exchange
Process change costs
Requirements identification and research
Product development
Contract sourcing
Process change and training of supplier and organization in each other's operation
Plant opening/closing, hiring/layoff
Supplier education and integtation
Ongoing costs
Life cycle costs
Maintenance, repair, and operations and other ongoing service and repair parts costs
Cost of quality
Sustainability costs
Reputation costs
Net costs