What is the overall cost of ownership?Metaphorically, an iceberg, the exposed portion of the visible representativehand modelthe purchase price or the purchasing costs below the surface of the "ice" represents a hidden cost, the two are to minimize the total cost of ownership, purchase price plus the supply chain in each step to generate additional costs, such as transport and logistics, inventory, operating,Maintenance and scrapping parts.Reduce the cost of the three key enterprises. For example: the quality, consistency, speed.Manufacturing expansion in accordance with the partnership, the companies often underestimate the cost, according to a survey, using only the purchase price, not considering the total cost of ownership, may underestimate the hidden costs of 20%,Contributing to this trend of supply chain cost is one factor that may be higher than most imagine.The total cost of ownership is provided on the visible and hidden costs of a more comprehensive and more comprehensive measure.
More and more companies have begun to focus on the quality, consistency and punctual performance rather than just the purchase price, as the economy tightens, more recently, with the financial and consumer decision - making and the development of more influence.Since the companies decide where to purchase or manufacture parts, and therefore, the overall cost of ownership is also getting more consideration.In order to effectively help companies understand the cost of the purchase decision, from labour cost to the product quality and to the political and security risks, these additional costs are likely to include products across international borders with a view to the coordination of inventory, transportation, tariffs or duties,Supplier product quality in terms of reliability problems, and meet the on - time delivery of a quotation.Supplier ability to expand production and long - term relationship with suppliers.It is very difficult to completely reduce the purchasing products in each of the elements, but the idea is to use more than the traditional method of measures and, more importantly, you're trying to extend it further, and in these decisions is to include more measures.
