Glossary
Total cost of ownership (TCO)
Total cost of ownership is the full cost of acquiring and using a product over its life, including purchase, logistics, compliance, quality failures and disposal.
Where it appears in procurement
In sourcing, TCO thinking is what makes a compliant supplier with a higher unit price the better commercial choice when the alternative is a held shipment or a recall.
Example
A non-compliant batch stopped at customs adds storage, re-testing and lost sales to a price that looked lower.
In Complyra
Complyra surfaces compliance results and required evidence alongside price and delivery so those costs are visible before the order, not after.