Total Cost of Ownership Analysis
Total Cost of Ownership Analysis is a procurement capability that assesses all direct and indirect costs associated with the lifespan of a product or service, including acquisition, usage, maintenance, and disposal. It aids in making cost-effective procurement decisions by accurately predicting long-term expenditures.
Level 1: Emerging
At an emerging level, you are beginning to understand the principles of Total Cost of Ownership Analysis. You can apply basic methodologies, but still need guidance in complex Procurement contexts.
Level 2: Proficient
At a proficient level you are able to conduct thorough Total Cost of Ownership Analysis, considering all relevant costs associated with procurement activities to make strategic sourcing decisions within the organization.
Level 3: Advanced
At an advanced level, you are able to conduct intricate Total Cost of Ownership Analysis in procurement, considering all costs associated with a product/service to make informed decision-making for the organization's benefit.
