Total cost of ownership

Costs and revenues.

Suppliers build financial resources to invest in capabilities and facilities, and to take risks.

Get to know TCO and why?

Customers determine (if possible) the value of key functions in a process such as R&D or implementation or maintenance and ask suppliers to develop these functions for a target price with agreements on price erosion.

It is difficult to determine the value of a new collaboration. Therefore, the Total Cost of Ownership must be mapped out. Shifts will occur. If suppliers start performing activities that the customer used to do itself, costs will shift. It is also expected that benefits will occur more quickly as a result of the new collaboration. How exactly this works can be mapped out. Let us know if you want to know more.