Look Past Unit Price With TCO
Compare supplier offers using total cost of ownership rather than unit price alone.
TCO is the antidote to quote-sheet blindness. Unit price is the visible cost The quote is easy to compare because it is explicit. That makes it seductive. But the organization experiences the whole supplier decision, not only the invoice line. Ownership costs move across budgets A low purchase price can push cost into maintenance, expediting, production downtime, quality inspection, or user training. Procurement creates better decisions when it pulls those costs into the award conversation. TCO is not an excuse to avoid savings The point is not to pick the expensive supplier. The point is to compare offers on the…
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