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Supply Chain Management, SCM, SCRC Supply Chain Resource Cooperative, Poole College of Management, North Carolina State University

Tackling real-world supply chain management challenges by applying research, experience and knowledge.

SCRC Article Library: Total Cost of Ownership (TCO)

Total Cost of Ownership (TCO)

Published on: Jan, 20, 2011

In supply chain management, the total cost of ownership of the supply delivery system is the sum of all the costs associated with every activity of the supply stream. The main insight that TCO offers to the supply chain manager is the understanding that the acquisition cost is often a very small portion of the total cost of ownership.

Source: http://www.apics.org/ (10th ed.)

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