Total cost of ownership (TCO)

Overall economic performance

TCO (Total Cost Ownership) is an essential tool for sustainable procurement, yet it is not widely known or understood by procurement teams.

It is a concept that is difficult to grasp in theory and can take many different shapes and forms, depending on whether it is applied to a product or a service. TCO is a powerful tool that questions the notion of overall economic performance, which is a key concern for procurement functions.

WHY CALCULATE TCO?

Assess the true economic performance of a product or service (use, maintenance, end of life, etc.)
Determine a strategy to improve performance
Help a buyer to choose between two similar products or services
Assess return on investment

If we want to apply a comprehensive approach to the costs of a purchase, we need to go further by considering the life cycle cost, which also includes all the positive and negative externalities covering the social, environmental and economic impacts of the targeted purchase. For instance, by taking into account the cost to society of carbon emissions.

Nos prestations de calcul du coût global (TCO)

Practical training on TCO and life cycle costs

Fun and interactive half-day workshop “Who will ﬁnd the best TCO?” in the format of a team escape game

Standard tools for calculating TCO or lifecycle costs

Detailed calculation of a TCO for one of your products or services, provision of operational expertise or support for a major investment project

Notre proposition de valeur

Selected case studies based on one of your organisation’s products or services.

Our in-depth knowledge of TCO and lifecycle costs.

Our ability to facilitate and put participants in real-life situations, in a pleasant and challenging atmosphere.

Solution phare Asea : Notre atelier ludique et interactif

Buyers need practical, pragmatic solutions on how to calculate TCO on a day-to-day basis. Our Workshop answers this question in an innovative format: participants form teams of investigators, tasked with modelling the TCO of a real product or service and comparing suppliers’ offers against this TCO model.

Find out more about this innovative workshop:

“Who will ﬁnd the best TCO?”

Interactive role-playing to encourage participants to work together

A step-by-step workshop to help you gain a detailed understanding of TCO through two real-life scenarios: one product and one service.

A fun format, in the form of an investigation, to encourage team cohesion

A workshop that can be delivered on your premises, online or in a hybrid format

After this workshop, your teams will

Be made aware of the fundamentals of the TCO approach

Have a concrete vision of the implementation of a TCO for a product and a service

Will have at their disposal a checklist of questions for their procurement categories

And master the art of asking the right questions about TCO.

Customer case: RESAH

RESAH is a public interest group whose aim is to support the centralization and professionalisation of procurement in the healthcare sector, both public and private not-for-proﬁt. A team of procurement experts, RESAH aims to improve the culture and use of Total Cost Ownership (TCO) in its functions (procurement and pharmacists), in the context of its RFAR certification.