TOTAL COST OF OWNERSHIP (TCO) IN PROCUREMENT

TOTAL COST OF OWNERSHIP (TCO) IN PROCUREMENT
WHAT IS TOTAL COST OF OWNERSHIP (TCO)
IMPORTANCE IN PROCUREMENT AND SCM
Holistic Approach Decision-Making
More Accuracy in Budgeting
Supports Investment Justification
Mitigating Future & Hidden Costs
Avoiding Low-Quality Purchases
More Operational Efficiency
Promotes Better Lifecycle Management
Better Suppliers Selection
THE COMPONENTS OF TCO.
1. Acquisition Costs
2. Operating Costs
3. Maintenance and Supports Costs
4. Upgrade and Scalability Costs
5. Downtime Costs
6. Training Costs
7. Energy and Resource Costs
8. Disposal or Decommissioning Costs
9. Opportunity Costs
10. Compliance Costs
11. Financing Costs
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[@AlphaKamara-l1q]

Well received sir, Thank you for your effort.

[@learningwithisrar]

Thanks