PART 2 (10 marks Total) Total Cost of Ownership (TCO) is an important concept when evaluating the procurement of a product that is closely aligned with the Strategy of the Company. Assume you are acquiring a new existing, built facility for your new warehousing function in your organization.
Question 1 (4 marks) Describe 4 costs that would be a part of your Total Cost of Ownership analysis?
Question 2 (4 marks) Purchasing has access to the full company administration and support staff. Assuming the Accounting and Finance teams would play a crucial role, describe what would you require from Accounting to contribute to your Total Cost of Ownership analysis? (use examples)
Question 3 (1 mark) Outline why current TCO (Total Cost of Ownership) is important for accurate future budget forecasting?
Question 4 (1 mark) Is there a unique step you would take to engage accounting? (they are always occupied and very busy).