Total Cost of Ownership can be an overwhelming topic. In many cases, it is extremely challenging to calculate Total Cost of Ownership.

Don’t miss updates on Procurement & Supply Chain, Subscribe here!

Now, you can start trying to understand Total Cost of Ownership for the first time when you are in a complex situation in your work. But I think it helps to take a basic example and learn from it first. You can always build your knowledge from there, applying what you already know to a more challenging purchase.

We recently did some printer purchasing here at Next Level Purchasing headquarters. Total Cost of Ownership was at the forefront of our decision making. Check out this article on Total Cost of Ownership as it relates to printers. It’s basic stuff, but the principles can be expanded upon for higher-level procurements.

One aspect of Total Cost of Ownership that we considered that the article didn’t cover was the cost of labor. Changing printer cartridges, dealing with printer performance problems, and waiting for documents to print all require someone’s time. That time is a resource that is being paid for, so minimizing wasted time further reduces Total Cost of Ownership.

I hope that you find this helpful.

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

More Posts