Do you use Life Cycle costing in your sourcing strategies? Do you know what it is?
Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc
Life-Cycle Costing is a procurement technique which considers operating costs , maintenance costs, acquisition price, and other costs of ownership in the award of contracts to ensure that the item acquired will result in the lowest total ownership cost during the time the item’s function is required. Also considered in life-cycle costing is the sum of all recurring and one-time (non-recurring) costs over the full lifecycle or a specified period of a good, service, structure, or system. This includes purchase price, installation cost, operating costs, maintenance costs, upgrade costs, and remaining (residual or salvage) value at the end of ownership or its useful life.
If you’d like to learn more about our service offerings that make it easier to understand your total product and or services costs, it’s time to learn more about SafeSourcing.
To that end, SafeSourcing is a Procure to Pay SaaS based provider with E-Procurement solutions and services that are part of our SaaS offered eSourcing suite like SafeContract™, SafePO™, SafeContract™ and our SafeSourceIt™ Global Supplier Database with over 500,000 vendor/suppliers. To learn more, please contact a SafeSourcing customer services associate.
