Companies often conduct RFP’s and tend to select the low bid based on a great price or rate. However, low bids often do not consider all the factors necessary to ensure work is done efficiently and properly, resulting in added costs. This session will connect Total Cost of Ownership (TCO) concepts developed by the PRSM Sourcing Committee and Supplier Relations Committee to ensure RFP’s and responses adequately address the full scope of service.
By attending this session, you will:
- Discuss helpful tools you can use to determine direct and indirect costs.
- Review TCO elements and TCO calculations.
- Evaluate TCO to make strategic sourcing decisions.
- Identify how to connect rates and price to TCO.
- Define non-cost elements that should be part of the sourcing process.