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Article: Quest for total cost of ownership continues.(Statistical Data Included)
- Article from:
- Purchasing
- Article date:
- October 5, 2000
- Author:
CopyrightCOPYRIGHT 2000 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The quest to make total-cost-of-ownership calculations a solid part of the purchasing process is still proving elusive.
Purchasing managers say their companies aren't using the proper tools. They don't have accurate calculation systems or their companies don't even believe in the calculation's value. They say they are working with other departments to try to get an answer, but in too many cases they are still coming up short.
So goes the search for so-called "total cost of ownership." Companies can save money and promote quality if they calculate this cost and use it to guide purchasing decisions. But many purchasing managers say their companies don't ...