Total Cost of Ownership & Serve

In today’s volatile market, Total Cost of Ownership (TCO) has become a critical concept for procurement and supply chain professionals. This course from SCMDOJO Academy helps you go beyond purchase price — teaching you how to measure every cost component that impacts your bottom line.

You’ll learn to calculate, analyze, and optimize TCO and Total Cost to Serve (TCS), empowering you to make smarter sourcing decisions and build more cost-effective, sustainable supply chains.

What You’ll Learn in This Total Cost of Ownership Course

This course provides a comprehensive understanding of the financial, operational, and strategic dimensions of cost management.

Key Learning Outcomes:

• What is Total Cost of Ownership (TCO) – definition, scope, and business value

• Key considerations for effective TCO management

• Impact of the Green Economy and sustainability on ownership costs

• Post-COVID Supply Chain realities and how they affect TCO

• Cost Calculation Checklist – step-by-step guide to computing total ownership cost

• Understanding Total Cost to Serve (TCS) – definition, importance, and application

• Downstream cost drivers and their financial implications

• Approaches to cost determination for informed decision-making

By completing this course, you’ll be able to quantify total costs, identify savings opportunities, and enhance procurement’s strategic value.

Why Total Cost of Ownership Matters in Procurement

Most organizations focus on price — not cost.
Total Cost of Ownership (TCO) helps you make smarter procurement decisions by looking at the entire lifecycle cost of goods and services.

Benefits of Understanding TCO:

• Identify hidden costs in procurement and supplier contracts

• Make data-driven decisions that reduce long-term spend

• Strengthen supplier evaluation and performance management

• Support sustainability and circular economy goals

• Build stronger business cases for sourcing strategies

In the post-COVID supply chain, companies that master TCO thinking achieve higher resilience, profitability, and supply chain visibility.

Why learn with Corey Weekes CPIM CIRM CSCP

Corey Weeks is based in Toronto, Canada, and is a co-founder and Managing Partner at the EIGHTY-FOUR GROUP  Supply Chain Consulting company. As well as a Senior Warehousing and Transportation Director at one of Canada’s leading and most globally recognized luxury apparel brands.

He is also a former Vice President of supply Chain, Director – Supply Chain, Senior Manager – Supply Chain Optimization, Supply Chain Consultant, Production Control Manager, and e-Commerce brand founder. And a part-time online University Lecturer.

He has acquired over 20 years of experience, across many aspects of global supply chain management, including. E-commerce logistics operations, global supply chain network design, and integration/improvement. Global sales and operations planning, procurement, vendor relationship management, operational strategy development, and implementation. Production scheduling process improvement, and manufacturing/production management.

He has also managed the implementation of several key operations and supply chain multi-million dollar initiatives across various industries in North America and Asia. Including apparel retail, medical devices, corrugated paperboard, petroleum services, and legalized cannabis (Canada).

Corey Weekes received his B.Sc in Mechanical Engineering from the University of the West Indies and his M.Sc in Operations Management from the University of Manchester Institute of Science and Technology (UMIST), Manchester, UK. He has also completed the Certified Production and Inventory Manager (CPIM), Certified Integrated Resource Manager (CIRM) and Certified Supply Chain Professional (CSCP) certifications from the Association of Supply Chain Management (APICS).

Who Should Take This Total Cost of Ownership Course?

This course is ideal for anyone involved in procurement, supply chain, or operations, looking to strengthen their understanding of TCO and cost analysis.

Perfect For:

• Procurement Professionals: Learn to evaluate suppliers beyond price

• Supply Chain Managers: Gain tools to measure cost-to-serve and efficiency

• Finance & Operations Teams: Improve cost transparency and accountability

• Business Leaders: Drive profitability through smarter total cost strategies

Suitable for the following roles:

• Entry-Level: Procurement Assistant, Procurement Coordinator, Purchasing Clerk, Sourcing Specialist
• Mid-Level: Procurement Specialist, Sourcing Analyst, Contract Specialist, Supplier Relationship Manager, Operational Buyer, Buyer, Inventory Contoller
• Senior-Level: Senior Procurement Specialist, Senior Sourcing Analyst, Lead Buyer, Procurement Manager, Category Manager, Strategic Sourcing Manager, Commodity Manager, Regional Commodity Manager
• Executive-Level: Director of Procurement, Chief Procurement Officer (CPO)
• Specialized Titles: Commodity Manager, Global Sourcing Manager, Indirect Procurement Manager, E-Procurement Manager

Requirements

• Access to the Internet
• Computer / Laptop / Mobile Device

What is included?

• Immediate unlimited access to course materials
• 30-day money-back guarantee
• Exercises and quizzes to help you put theory into practice
• English Closed Captions
• Full transcripts in pdf for each lesson
• Suitable for mobile or desktop
• SCMDOJO Certification when you pass the course quiz (accessible from Learning Center post-sign-in)

What Is Total Cost of Ownership (TCO) and How Is It Calculated?

Total Cost of Ownership (TCO) is a comprehensive financial estimate used to determine the direct and indirect costs of a product or service over its entire lifecycle.

Instead of focusing solely on purchase price, TCO includes:

• Acquisition Costs – purchase price, taxes, shipping, installation

• Operating Costs – energy use, maintenance, repairs

• Downtime Costs – lost productivity or service interruptions

• Disposal Costs – recycling, decommissioning, or replacement

By evaluating all cost components, organizations can make informed procurement decisions that minimize lifetime costs and maximize ROI.

The smarter the TCO analysis, the stronger your procurement strategy.

What Is Total Cost to Serve (TCS)?

Total Cost to Serve (TCS) extends beyond ownership to capture all downstream costs of delivering products or services to customers.

It helps organizations:

• Identify unprofitable customers or channels

• Improve logistics and fulfillment efficiency

• Align pricing strategies with true service costs

Understanding TCS ensures that your supply chain strategy aligns with profitability and customer value.

Frequently Asked Questions

FAQ 1: What factors are considered in the Total Cost of Ownership (TCO) analysis?

Answer: Total Cost of Ownership (TCO) analysis considers factors such as purchase price, operating costs, maintenance costs, and disposal costs.

FAQ 2: How can Total Cost of Ownership (TCO) analysis help in procurement decisions?

Answer: Total Cost of Ownership (TCO) analysis helps in procurement decisions by providing a more comprehensive understanding of a product or service’s actual cost of ownership.

FAQ 3: What are the challenges of conducting a Total Cost of Ownership (TCO) analysis?

Answer: Challenges of conducting a TCO analysis include data collection, accurate cost estimation, and considering all relevant factors.

FAQ 4: How can technology assist in TCO analysis?

Answer: Technology can assist in Total Cost of Ownership (TCO) analysis by automating data collection, performing complex calculations, and generating reports.

FAQ 5: What are the benefits of using Total Cost of Ownership (TCO) analysis in procurement?

Answer: Using TCO analysis in procurement leads to more informed decisions, reduced costs, and improved supplier selection.