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In the same way that acquisitive organizations have become more savvy about TCO — Total Cost of Ownership — they should rethink TCP: the Total Cost of Procurement. The real-world drawback with this declaration of innovation interdependence is neither cultural nor operational. It's leadership.
We need to adopt something similar to a “total cost of ownership” (TCO) analysis. Now common in industry, TCO considers both direct and indirect costs over time. For example, once Generation managers realized the power of CPED, they used it to make operational improvements. And accountability drives results.
Then the family's CFO, my wife, who also happens to be a CPA, demanded to know their TCO. cost of improving the operating systems; unfortunately, the new OS could not be loaded from the internal CD drive and required an external DVD player, which cost $120. I figured these computers couldn't possibly depreciate much further.
The number of industrial robots in operation around the world has grown rapidly in recent years, but nowhere more so than in China, where some 30% of the world’s robots are in operation. Internalize the costs of automation (and their benefits) – With a particular focus on the total cost of ownership (TCO).
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