Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How One Buyer Used Total Cost of Ownership to Beat a Low Price
Episode 47 of The Buyer's Side with Fexingo: Lucas and Luna dive into total cost of ownership (TCO) as a procurement superpower. They break down a real case where a buyer for a mid-tier automotive parts supplier rejected a 15% cheaper bid after calculating hidden costs — freight, rework, downtime, and warranty risk. The higher-priced supplier saved the company $2.3 million over three years. Lucas shares a simple TCO framework: purchase price plus logistics plus quality risk plus maintenance minus residual value. Luna pushes back on when TCO is overkill versus essential. No theory — just…
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