Total cost of ownership
Total Cost of Ownership (TCO) is a comprehensive financial estimate that shows how much the purchase, maintenance and use of a system will cost over its entire service life. The TCO covers all system-related costs, including installation, maintenance, operation and disposal, for companies in the industrial sector.
Advantages of TCO
- Informed decisions: Helps to make better purchasing decisions by comparing long-term costs.
- Cost optimization: Identifies areas to reduce operating costs.
- Accurate budgeting: Provides a clear picture of future expenditure.
- Value assessment: Assesses the actual value of an investment over time.
In order for industrial companies to effectively manage their assets, it is essential that they understand the total cost of ownership. By taking all costs into account, companies can make strategic decisions, streamline processes and improve financial performance.
Further links: