The Walt Disney Company Strategic Sourcing and Procurement ...

Supplier Evaluation and Selection Selecting Potential Vendors TCO
After thoroughly examining potential supplier sources and gathering pertinent supplier information,
S&P should select suppliers for a competitive bidding opportunity based on the likelihood that the
supplier can meet TWDC’s requirements on a best-value/total-cost-of-ownership basis.
Total cost-of-ownership (TCO) represents a collection of cost elements including:
Purchasing Cost Factors
Total Cost Factors
1. Initial purchase price 1. Maintenance costs
2. FOB point 2. Training costs
3. Cash terms 3. Installation costs
4. Discounts 4. Defects costs/rate
5. Transportation costs 5. Allocated overhead costs
6. Lead time 6. Disposal costs
7. Inventory cost
8. Quality control
9. Packaging and handling costs
10. Financial costs