Many businesses use some form of Total Cost of Ownership model to support their Procurement and sourcing decisions. In fact these models are not just used casually, but they often are designed to inform and make optimal sourcing choices.
But many dynamics that we have experienced in the last few years suggest that these models are less than optimal. From chronic global Supply Chain breakdowns during the pandemic through to disruptions caused by outsourcing and single points of failure, sourcing decisions have been exposed as being less than ideal.
What is the current nature of these Total Cost of Ownership models, and what needs to change to make their use more robust and responsive?
Continue reading “Total Cost of Ownership Procurement Model Failure – What’s Missing?”