Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How a Buyer Used Total Cost of Ownership to Cut Spend
In this episode, Lucas and Luna explore a real-world procurement case: a mid-sized manufacturer of industrial pumps used total cost of ownership (TCO) analysis to cut overall spend by 11 percent, even though the initial purchase price rose 6 percent. They walk through how the buyer modeled acquisition cost, maintenance, energy use, downtime, and disposal costs across two competing suppliers, and the surprising result. The conversation covers why most procurement teams still default to unit price, how TCO changes negotiation leverage, and a practical framework any buyer can apply next quarter…
The skinny
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