Gartner Research

Use Total Cost of Ownership to Optimize Costs and Increase Savings

Published: 19 January 2018

ID: G00344949

Analyst(s): Miguel Cossio

Summary

Reducing costs is often top of mind for supply chain leaders in sourcing and procurement, yet a narrow focus on unit price alone can lead to increased supply chain costs. Use this research to identify different types of cost that can be optimized to ensure savings accomplished hit the bottom line.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Identify Areas of Opportunity to Implement TCO Based on Data Availability and Potential Cost Savings
  • Incorporate Total Cost of Ownership Into Sourcing Processes
  • Showcase Savings Regardless of What Is Reported Financially by Procurement

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