--- title: Efficiencies Blog | Total Cost of Ownership description: Total Cost of Ownership | --- [![Supply-Tech-Logo](https://www.supplytechnologies.com/hs-fs/file-590229488-png/site-images/Supply-Tech-Logo.png?width=426&name=Supply-Tech-Logo.png "Supply-Tech-Logo")](https://supplytechnologies-2.hs-sites.com/home) [UK/Ireland Site ](http://www.supplytechnologies.co.uk)[India Site](http://www.supplytechnologies.co.in)  [Request Free Quote or Process Analysis](https://www.supplytechnologies.com/about-contact) [OVERVIEW & LOCATIONS](https://supplytechnologies-2.hs-sites.com/about-overview-locations)  ![lock](https://www.supplytechnologies.com/hs-fs/file-595480430-png/site-images/lock.png)  [PARTNER PORTAL](http://extranet.supplytechnologies.com/ils/usr_pwd.htm)  |  [CONTACT](https://supplytechnologies-2.hs-sites.com/about-contact) - ![](https://www.supplytechnologies.com/hs-fs/file-612630860-jpg/site-images/headers/header5.jpg) ## Insights On Efficiency # [NEXT LEVEL BLOG] ## [12 Key Elements of Total Cost of Ownership](https://www.supplytechnologies.com/blog/12-key-elements-of-total-cost-of-ownership) Posted by [John Chrzanowski, Senior VP Operations & Admin](https://www.supplytechnologies.com/blog/author/john-chrzanowski-senior-vp-operations-admin) - [Tweet](https://twitter.com/share) [![](https://www.supplytechnologies.com/hs-fs/file-2355288440-jpg/Blog_Photos/iceberg_for_TCO-524754-edited.jpg) ](https://www.supplytechnologies.com/blog/12-key-elements-of-total-cost-of-ownership) Traditionally,** Total Cost of Ownership** (**TCO**) has been a calculation intended to help buyers and owners determine the direct and indirect costs of procuring a product. In supply chain management, vendor managed inventory programs involve managing the process up to and including point of use on an assembly line. In this case, the calculation includes the direct and indirect cost of procuring a product but extends beyond the procurement process to include the costs incurred throughout the supply chain to assure a smooth integration into a final assembly. The materiality and value of each component of the TCO in Supply Chain Management will vary significantly by item depending on specific characteristics, **some of which include**: - Item value - Minimum order quantities - Material content - Physical characteristics - Method of delivery/lead time/freight and logistics - Source of supply - Volatility of demand - Product life cycle/obsolescence - Order processing costs - Application - Program management costs - Opportunity costs <[Read More](https://www.supplytechnologies.com/blog/12-key-elements-of-total-cost-of-ownership) 0 Comments [Click here to read/write comments](https://www.supplytechnologies.com/blog/12-key-elements-of-total-cost-of-ownership#comments) Topics: [Total Cost of Ownership](https://www.supplytechnologies.com/blog/topic/total-cost-of-ownership) [All posts](https://www.supplytechnologies.com/blog/all) ### Subscribe to Email Updates ### Recent Posts ### Posts by Topic - [Supply Chain, (5)](https://www.supplytechnologies.com/blog/topic/supply-chain) - [Custom VMI Program, (4)](https://www.supplytechnologies.com/blog/topic/custom-vmi-program) - [VMI Program (2)](https://www.supplytechnologies.com/blog/topic/vmi-program) - [lean (2)](https://www.supplytechnologies.com/blog/topic/lean) - [Acquisition (1)](https://www.supplytechnologies.com/blog/topic/acquisition) - [Apollo Aerospace Components (1)](https://www.supplytechnologies.com/blog/topic/apollo-aerospace-components) - [Data Discipline (1)](https://www.supplytechnologies.com/blog/topic/data-discipline) - [Data Governance (1)](https://www.supplytechnologies.com/blog/topic/data-governance) - [Data Integrity, (1)](https://www.supplytechnologies.com/blog/topic/data-integrity) - [Engineering Efficiencies (1)](https://www.supplytechnologies.com/blog/topic/engineering-efficiencies) - [Hydrogen embrittlement (1)](https://www.supplytechnologies.com/blog/topic/hydrogen-embrittlement) - [Impact of the US West Coast Port Disruptions (1)](https://www.supplytechnologies.com/blog/topic/impact-of-the-us-west-coast-port-disruptions) - [Supplier Collaboration (1)](https://www.supplytechnologies.com/blog/topic/supplier-collaboration) - [Supply Chain Information Flow (1)](https://www.supplytechnologies.com/blog/topic/supply-chain-information-flow) - [Supply Chain Risk Mitigation Strategies (1)](https://www.supplytechnologies.com/blog/topic/supply-chain-risk-mitigation-strategies) - [Supply Technologies (1)](https://www.supplytechnologies.com/blog/topic/supply-technologies) - [Total Cost of Ownership (1)](https://www.supplytechnologies.com/blog/topic/total-cost-of-ownership) - [demand planning (1)](https://www.supplytechnologies.com/blog/topic/demand-planning) - [failing parts due to hydrogen embrittlement (1)](https://www.supplytechnologies.com/blog/topic/failing-parts-due-to-hydrogen-embrittlement) - [risk management with mechanical fasteners (1)](https://www.supplytechnologies.com/blog/topic/risk-management-with-mechanical-fasteners) - [statistical analysis (1)](https://www.supplytechnologies.com/blog/topic/statistical-analysis) [see all](https://www.supplytechnologies.com/blog/topic/total-cost-of-ownership#) ### Follow Me Supply Technologies and Total Supply Management are trademarks of Supply Technologies LLC. All other trademarks are the properties of their respective companies. [Privacy Policy](https://www.supplytechnologies.com/privacy)