Global Sourcing Tools > Tools and Services > TOCO2010 - Total Cost of Ownership Tool

TOCO2010 - Total Cost of Ownership-Tool

The state of the art TCO method was initially developed by Texas Instruments and implemented for the Total Cost Analysis of electronics circuit in the mid 1980s.

Total Cost of Ownership is the most powerful tool in Global Sourcing and its implementation represents the supreme discipline and core competence in determining possible savíngs in strategic procurement.

The basic approach is:

Our Basic TOCO Approach

In comparison of several suppliers, apparently on a similar level of price, additional procurement costs, technical status, quality, delivery reliability and confidentiality, it becomes clear, which is really the optimal one from total cost and strategic view. In Global Sourcing is it similar to buying a car: You will not just buy it due to being the cheapest one, but most likely have also a look at reliability, availability of service, spare parts and other issues.

In TOCO2010 we have implemented this appoach in a simple, logical and for every company adaptable way. It was introduced by Global Procurement Services and Global Sourcing Tools during the Hanover Fair 2010.

Structure of TOCO 2010

The advantages of TOCO2010

  1. Holistic Approach: Classic Total Cost of Ownership + Strategic evalauation
  2. Easy handling of the software tool: fill Excel cells and graphics will be generated automatically
  3. Support in comment fields by experienced and reference values , i.e. customs tariff, packaging charges, etc.
  4. Up-to-date currency exchange rates via the web or use of assumed exchange rates (ERP)

  5. tl_files/global_sourcing_tool/pics/toolsundservice/Bild323engl.jpg
  6. Alternative Normalizing of the calculated values into the currencies EUR, CHF or USD
  7. Presentation of the savings and strategic results in a graphic way, each 1 per page
  8. Proposal for default criteria, which can be modified
  9. The software tool works with Excel 2003 + Excel 2007 + Excel 2010, available in German or English