White Paper Total Cost of Ownership - What companies should look for in capital goods
The Total Cost of Ownership (TCO) approach is about defining an accounting procedure that is intended to help companies in particular to collect all costs incurred by capital goods and to consider them over the entire period of use of the investment. The white paper examines the following factors, among others:
- Distinction between direct and indirect costs
- Practical examples for the calculation of costs
- Calculation of the Return of Investment
What should be taken into account when calculating a TCO for industrial supplies?
TCO considerations and analyses are becoming increasingly important in the industry due to global competition. Suppliers of machines and systems, for example in the packaging sector, are required to submit TCO calculations to prove their efficiency in use. Uniform evaluations are essential in this context.
Indirect and direct costs of a TCO - Where are the differences?
In a complete cost statement, a distinction is made between these two cost types: Direct costs are clearly identifiable and are directly related to the planned investment. Indirect costs are not incurred as a result of the purchase itself, but rather as a result of unproductive use by the end user: i.e. situations in which productivity is negatively affected or a device fails. A precise listing of all costs often provides insight into hidden savings potentials.
Who benefits from this White Paper?
Everyone who is about to make a new investment in production benefits from this white paper: The document shows how the topic of Total Cost of Ownership can be approached in a structured way and which factors contribute significantly to clear and efficient cost planning.