TCO-1
What is TCO and why is it so important? 
Every activity, use of a material or contracting of a service implies a cost to the business. When it comes to materials or services from a supplier, more often than not, the  focus is on the price as per contract. 

Associated to the use of the material or service, there are always additional costs involved, some obvious, some not so obvious. 

The quantification of all these direct and indirect  costs is the Total Cost of Ownership or TCO. 

Similarly known as the Total Cost of Acquisition or Total Life-Cycle Costs, TCO is a complex issue . It is most definitely  multi-disciplinary and often multi-dimensional.

It is not uncommon for the TCO to be several multiples the price paid to a supplier for a material or service. 

Understanding, quantifying and reducing TCO is not an exact science, as there is often a lot of subjectivity. Even so, the cost reduction opportunities that reveal themselves when working in the TCO world can be  dramatic. 

Real, sustainable operational cost reduction can only be achieved by working with TCO.

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