Identified purchasing-related costs through the lens of the costs of TCO
| Purchasing-related costs | Groups of costs in TCO |
|---|---|
| 1. transportation | transaction |
| 2. delivery quality assessment | transaction |
| 3. contract negotiations | transaction |
| 4. periodic evaluation of a supplier | pretransaction |
| 5. storage | transaction |
| 6. initial supplier evaluation | pretransaction |
| 7. processing documents related to the order | transaction |
| 8. definition of product requirements and specifications | pretransaction |
| 9. customs duties (duties) | transaction |
| 10. utilization/scrapping | post-transaction |
| 11. technical service/servicing (inspections, repairs) | post-transaction |
| 12. conducting the transaction (letter of credit, exchange rates) | transaction |
| 13. operation and use (e.g. devices) | post-transaction |
| 14. transaction financing (e.g. credit, leasing, factoring) | transaction |
| 15. reference visits to existing customers served by potential vendors | post-transaction |
| 16. training connected with the use of a product | post-transaction |
| 17. modernization/upgrading (e.g. devices) | post-transaction |
| 18. commissioning (for devices) | post-transaction |
| 19. installation at the place of use | post-transaction |
| 20. insurance | transaction |
| Purchasing-related costs | Groups of costs in TCO |
|---|---|
| 1. transportation | transaction |
| 2. delivery quality assessment | transaction |
| 3. contract negotiations | transaction |
| 4. periodic evaluation of a supplier | pretransaction |
| 5. storage | transaction |
| 6. initial supplier evaluation | pretransaction |
| 7. processing documents related to the order | transaction |
| 8. definition of product requirements and specifications | pretransaction |
| 9. customs duties (duties) | transaction |
| 10. utilization/scrapping | post-transaction |
| 11. technical service/servicing (inspections, repairs) | post-transaction |
| 12. conducting the transaction (letter of credit, exchange rates) | transaction |
| 13. operation and use (e.g. devices) | post-transaction |
| 14. transaction financing (e.g. credit, leasing, factoring) | transaction |
| 15. reference visits to existing customers served by potential vendors | post-transaction |
| 16. training connected with the use of a product | post-transaction |
| 17. modernization/upgrading (e.g. devices) | post-transaction |
| 18. commissioning (for devices) | post-transaction |
| 19. installation at the place of use | post-transaction |
| 20. insurance | transaction |
Source(s): Own elaboration
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