Procurement decisions are often made on piecemeal costs ignoring supply chain and other indirect costs. In the world of global sourcing such decisions can end up being very expensive mistakes. In this course, the focus is on developing the skills to correctly evaluate total landed costs (TLC) and estimate total costs of ownership (TCO).
Who Should Attend
This Introductory course is designed for procurement professionals one who want to understand the critical cost drivers in procurement functions and are interested in ensuring they are calculating costs correctly for sourcing decisions.
Module: Total Landed Cost, Total Cost of Ownership - The session will define the fundamental concepts of TLC and TCO as well as the basics of net present value analysis. Examples will be discussed to illustrate common sourcing errors from incorrect cost analysis and how to avoid them.