Interactive Virtual Learning Module

Total Cost of Ownership

Our Total Cost of Ownership (TCO) module is aimed at buyers, category managers, supplier managers and contract managers. Experience of category management at a practitioner level is helpful.

In this module, delegates will understand:

  • What are the key elements within TCO and how it adds value to procurement activity including supply chain analysis
  • Understand the difference between price and cost
  • How to create a TCO model for a category
  • How to use TCO thinking to identify areas of opportunity e.g. supplier negotiations
  • Where TCO can be used for best effect
  • How TCO impacts other procurement tools and models

On completion of the module, delegates will have practiced a number of techniques to:

  • Analyse a supply & value chain
  • Understand the sources of data to create a TCO model
  • Identify the crucial differences between price and cost
  • Create an outline TCO model for a chosen category

This 2-part module can be delivered on consecutive days or over a more extended period providing just in time learning. For some of our clients, a coaching programme is offered alongside the module to embed good practice further.

Interactive Virtual Learning Modules

Total Cost of Ownership

Part 1 - Introduction & Overview  - 3 hours

Session 1:
TCO Overview & Context
Session 2:
Cost Concepts & Calculation

Part 2 -  TCO  Negotiables           - 3 hours

Session 3:
TCO Analysis
Session 4:
Value Levers & TCO