PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
How to control the total cost of ownership in change market dynamics? Saving Changes...
Sort By:
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
The only way you can control TCO is by having a sufficient demand to influence costs. If you a a government or a Walmart, you can drive costs down for yourself, usually on the back of the suppliers. Saving Changes...
With supply chains as deeply distributed as they often are, you cannot completely control them. Even companies like Walmart who have enormous leverage over their suppliers only have influence down to 2nd tier suppliers, and they are a rarity.
Some companies try to integrate vertically and own more pieces of the supply chain, which comes with significant costs and owning all the risks. Then the next CEO comes in and divests portions of their supply chain and act more as integrators.
What you can do instead is mitigate the risks from different parts of your supply chain to maintain stability and resilience to disruptions. Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
The obvious answer is that you can't. However, you can manage costs by identifying the risks, putting in place mitigating measures including appropriate contract language, pre-qualifying vendors, follow up on purchases, minimizing product changes, avoiding 'custom made' items, using corporate wide purchasing power, etc.
Just because you don't have total control does not mean you can't provide meaningful management. Saving Changes...
Community Champion
