Total Cost of Ownership

When it comes to buying consumable goods for your business, it's easy to get caught up in the excitement of a good deal. 

But before you place that order, it's important to remember that the true cost of purchasing, also known as the Total Cost of Ownership (TCO), goes way beyond the initial purchase price.

Let's say you're on the hunt for a new pair of safety glasses for your workshop. The initial purchase price may seem like a steal, but have you considered the hidden expenses lurking beneath the surface? Freight charges, inventory holding costs, stock management costs, inward-goods processing costs, and accounts-payable processing costs are all a part of the TCO.

It's like buying a house, it's not just about the purchase price, it's also the mortgage, property taxes, insurance, and maintenance costs. Similarly, owning a product goes beyond the initial purchase price, it also involves the cost of managing and distributing the inventory, and the time and motion required for workshop staff to access the product.

But don't worry, you don't have to go through this alone! Euromarc is here to help you navigate the TCO minefield and make informed decisions that will ultimately lead to cost savings and improved efficiencies for your company.

We'll do a full workshop tour, understand your company's goals and plan a lean exercise. The analysis can take 4-8 hours to map the current state, including meetings with relevant departments to understand all aspects of your order processes.

We'll analyse the current state looking for opportunities to reduce waste and costs and come up with a detailed optimised state proposal, including a set of solutions to increase TCO savings through vendor consolidation, minimizing freight expenses, increasing productivity, improved labour utilization, and a Euromarc inventory managed program.

The savings for businesses that participate in a TCO analysis can achieve average savings of 15%. Imagine what you could do with all that extra cash! Invest 1-2 days to bring TCO under examination, identify opportunities to improve efficiencies, productivity, and profitability by discovering your optimised state.

In conclusion, TCO is a crucial concept to consider when purchasing consumable goods for your engineering workshop. Don't let the initial purchase price blind you from the hidden costs. By understanding and managing TCO, you can make informed decisions that will ultimately lead to cost savings and improved efficiencies for your business. Euromarc is here to help you navigate this process and discover your optimised state. So, why not give us a call and let's have some fun with TCO!