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PROCUREMENT-MANAGEMENT5 MIN READ

Sort Costs Into the TCO Model

Identify which supplier-decision costs belong in a TCO comparison.

Place each factor where it belongs in a supplier TCO discussion. Visible price Ownership cost Non-cost factor Monthly lease fee quoted by the supplier Estimated downtime from slower service response Extra internal support tickets caused by device failures Stakeholder preference for a familiar brand logo Supplier installation charge in the proposal End-of-term removal and disposal fees

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