Tag: TCO

Category Strategy

Sourcing Strategy Development: Complete Procurement Guide

A procurement team can analyze spend, study supplier markets and evaluate costs, but these activities create limited value unless they lead to a clear sourcing strategy. Sourcing strategy development is the process of converting procurement intelligence into a structured plan for how, where, and from whom an organization should source goods or services. A strong

Cost Management

Total Cost of Ownership (TCO) in Procurement: Complete Guide

A supplier offering the lowest price is not necessarily offering the lowest overall cost. A lower purchase price may come with higher freight, inventory, quality, maintenance, operating, administrative or end-of-life costs. Total Cost of Ownership, commonly called TCO, provides a broader view by evaluating the costs associated with a purchase across its relevant lifecycle. CIPS