Total Cost of Ownership

Maximizing Value, Minimizing Cost

As procurement professionals, we can reduce the essence of everything we do to one single word—cost. 

Just about any enterprising business can negotiate the lowest price. But does the lowest price automatically result in the best Return on Investment (ROI)? In reality, our acquisition cost, or unit pricing, only represents a small proportion of the Total Cost of Ownership (TCO). For those of us focused on the highest efficiency, there is a compelling need to break free from the narrow confines of price analysis and focus instead on achieving the lowest TCO—the sum of all costs associated with every activity of the supply chain. 

TCO is a cost-efficiency strategy associated with the procurement sector of supply chain management to support decision-making that overrides the emphasis on purchase prices. Instead, TCO repositions the focus to evaluate both the direct and indirect costs of a product or service—from acquisition of materials and transportation and storage to the selling and delivery or purchased goods and services. The goal is to provide a more accurate basis for choosing among differing alternatives in a purchasing decision, thereby empowering us to make more strategically advantageous financial decisions. 

Why does TCO matter?

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Discover where and when to connect with Reveal at upcoming webinars and industry events.

Business Guide to S/4 vs. ECC's New Planning Features & Functions

February 15, 2023
11:00 am
CST
With
Kristie
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Martin
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Business Guide to S/4 vs. ECC's Production Finite Scheduling

April 12, 2023
11:00 am
CST
With
Eacliffe
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David
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Business Guide to S/4 vs. ECC's Extended Warehouse Management

June 21, 2023
11:00 am
CST
With
Steve
and
Jason
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Business Guide to S/4 vs. ECC's Sales Order Monitoring & ATP

August 16, 2023
11:00 am
CST
With
Marcie
and
Kristie
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Business Guide to S4 vs. ECC's Purchasing Spend Analysis

October 18, 2023
11:00 am
CST
With
Wayne
and
Peyton
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SAPinsider Vegas 2023

Mar 20, 2023
Mar 23, 2023
Bellagio Hotel, Vegas, NV
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MasterClass SAP Supply Chain Bootcamp

Apr 19, 2023
Apr 21, 2023
Virtual
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Gartner Supply Chain Symposium Xpo 2023

May 8, 2023
May 10, 2023
Orlando, FL
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MasterClass SAP Supply Chain Bootcamp

Jul 19, 2023
Jul 20, 2023
Virtual
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