What is PCB Total Cost of Ownership?In layman's terms, TCO involves determining the total cost of purchasing a printed circuit board. When buyers become too focused on Price they tend to lose sight of Cost. Accurately calculating PCB cost requires accounting for purchase price as well as hard / soft costs.
- Inventory holding costs
- Impact of extended lead times
- Difficulties in communication
- Increased MOQ’s
- Increased Time to Market
- Lost incentives
- Potential intellectual property loss
Total Cost Tools
These free TCO tools provide manufacturers insight when comparing Reshoring to Offshoring. They delineate effects of offshoring’s poor quality, trade secret thefts, supply chain disruptions and lengthy delivery times while demonstrating how to eliminate the waste and instability caused by offshoring.
Total Cost of Ownership Estimator
The Total Cost of Ownership Estimator is a complimentary tool that enables aggregation of all cost and risk factors into one cost for simpler, more objective decision making.Most companies make sourcing decisions based on price alone, resulting in a 20 to 30 percent miscalculation of actual offshoring costs. With the Total Cost of Ownership Estimator, users account for all relevant factors when determining their total cost of ownership including overhead, balance sheet, corporate strategy and other external and internal business costs.
In the last several years, the perception has been that manufacturing in the U.S. was too costly, especially by companies operating with razor-thin margins in high volume, labor intense industries. But with rapid changes in the economies of developing countries and the emergence of a more unpredictable global supply chain, that trend is changing. You need to calculate all costs of offshoring, including the cost of risk.
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