{"id":11239,"date":"2026-07-07T15:32:59","date_gmt":"2026-07-07T13:32:59","guid":{"rendered":"https:\/\/adconia.de\/en\/?p=11239"},"modified":"2026-07-07T15:34:54","modified_gmt":"2026-07-07T13:34:54","slug":"how-to-calculate-tco-correctly-in-procurement","status":"publish","type":"post","link":"https:\/\/adconia.de\/en\/blog\/2026\/07\/07\/how-to-calculate-tco-correctly-in-procurement\/","title":{"rendered":"How to calculate TCO correctly in procurement?"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-mraop3tg-48b4acb550fb7f9953b213739d32bb58\">\n.avia-section.av-mraop3tg-48b4acb550fb7f9953b213739d32bb58{\nbackground-repeat:no-repeat;\nbackground-image:url(https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2026\/07\/seth0s-waterdrop-4645249_1920.jpg);\nbackground-position:50% 50%;\nbackground-attachment:fixed;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-mraop3tg-48b4acb550fb7f9953b213739d32bb58 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id=\"style-css-av-mraoqtif-384b86c1179e0f3c256c05e090b1a61c\">\n.flex_column.av-mraoqtif-384b86c1179e0f3c256c05e090b1a61c{\nborder-width:1px;\nborder-color:#fa7d19;\nborder-style:solid;\nborder-radius:15px 15px 15px 15px;\npadding:15px 15px 15px 15px;\nbackground-color:rgba(0,0,0,0.75);\n}\n<\/style>\n<div  class='flex_column av-mraoqtif-384b86c1179e0f3c256c05e090b1a61c av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  avia-builder-el-last  flex_column_div  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-mraoqfdm-32cd360740d2b3baeaf5b1a3f34dfb48\">\n#top .av-special-heading.av-mraoqfdm-32cd360740d2b3baeaf5b1a3f34dfb48{\npadding-bottom:10px;\ncolor:#fa7d19;\nfont-size:32px;\n}\nbody .av-special-heading.av-mraoqfdm-32cd360740d2b3baeaf5b1a3f34dfb48 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n#top #wrap_all .av-special-heading.av-mraoqfdm-32cd360740d2b3baeaf5b1a3f34dfb48 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procurement?<\/h2><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/div><\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='after_section_1'  class='main_color av_default_container_wrap container_wrap sidebar_right'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-11239'><div class='entry-content-wrapper clearfix'><div  class='flex_column av-1s1j7mv-cf50d7dfe3e7e126b2092768cd4c2b42 av_one_fifth  avia-builder-el-4  el_after_av_section  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-mraou3oh-7f7476cf06bc2bbe75f09e8394cb38ff\">\n#top #wrap_all .avia-team-member.av-mraou3oh-7f7476cf06bc2bbe75f09e8394cb38ff .team-member-name{\nfont-size:24px;\ncolor:#004047;\n}\n.avia-team-member.av-mraou3oh-7f7476cf06bc2bbe75f09e8394cb38ff .team-member-job-title{\nfont-size:16px;\ncolor:#f25000;\n}\n<\/style>\n<section  class='avia-team-member av-mraou3oh-7f7476cf06bc2bbe75f09e8394cb38ff  avia-builder-el-5  avia-builder-el-no-sibling '  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/Person\" ><div class=\"team-img-container\"><img decoding=\"async\" fetchpriority=\"high\" class='wp-image-10876 avia-img-lazy-loading-not-10876 avia_image avia_image_team' src=\"https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_-300x300.png\" alt='Oliver Kreienbrink'  itemprop=\"image\"   height=\"300\" width=\"300\" srcset=\"https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_-300x300.png 300w, https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_-80x80.png 80w, https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_-36x36.png 36w, https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_-180x180.png 180w, https:\/\/adconia.de\/en\/wp-content\/uploads\/sites\/5\/2024\/07\/Oliver-Kreienbrink_.png 576w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div><h3 class='team-member-name '  itemprop=\"name\" >Oliver Kreienbrink<\/h3><div class='team-member-job-title av_opacity_variation'  itemprop=\"jobTitle\" >Managing Director<\/div><span class='hidden team-member-affiliation'  itemprop=\"affiliation\" >ADCONIA<\/span><\/section><\/div><\/p>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-18lulif-6ad356d7d865061126e83efc22a3192a\">\n.flex_column.av-18lulif-6ad356d7d865061126e83efc22a3192a{\npadding:10px 10px 10px 10px;\nbackground-color:#edf4fc;\n}\n<\/style>\n<div  class='flex_column av-18lulif-6ad356d7d865061126e83efc22a3192a av_three_fifth  avia-builder-el-6  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div  '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e\">\n#top .av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e{\npadding-bottom:10px;\ncolor:#004047;\nfont-size:32px;\n}\nbody .av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n#top #wrap_all .av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .av-special-heading-tag{\nfont-size:32px;\n}\n.av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .special-heading-inner-border{\nborder-color:#004047;\n}\n.av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .av-subheading{\nfont-size:15px;\n}\n\n@media only screen and (min-width: 480px) and (max-width: 767px){ \n#top #wrap_all .av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n\n@media only screen and (max-width: 479px){ \n#top #wrap_all .av-special-heading.av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n<\/style>\n<div  class='av-special-heading av-mraor5ad-9b0f12e062db62cadb0dcb7d1c06b10e av-special-heading-h2 custom-color-heading blockquote modern-quote modern-centered  avia-builder-el-7  el_before_av_textblock  avia-builder-el-first  av-inherit-size'><h2 class='av-special-heading-tag '  itemprop=\"headline\"  >How to calculate TCO correctly in procurement?<\/h2><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-mraosy76-d41278ba1126c68ace5cb8c80a414ad3\">\n#top .av_textblock_section.av-mraosy76-d41278ba1126c68ace5cb8c80a414ad3 .avia_textblock{\nfont-size:16px;\ncolor:#004047;\n}\n<\/style>\n<section  class='av_textblock_section av-mraosy76-d41278ba1126c68ace5cb8c80a414ad3 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock av_inherit_color'  itemprop=\"text\" ><p><em>This blog post explains why <strong>Total Cost of Ownership (TCO)<\/strong> in procurement is more than just the purchase price: what matters are all the costs incurred over the product\u2019s lifecycle \u2013 from procurement and operation through to maintenance, risks and disposal. You will learn <strong>which cost categories<\/strong> are involved, <strong>how<\/strong> a TCO calculation is structured, and <strong>which errors<\/strong> (e.g. missing data or an incorrect time frame) typically lead to poor decision-making. Finally, the post demonstrates how <strong>ADCONIA<\/strong> efficiently integrates TCO analyses into the procurement process through templates, data integration and reporting.<\/em><\/p>\n<p><strong>TCO calculation in procurement<\/strong> takes into account all the costs associated with a product or service throughout its entire life cycle. These include acquisition costs, operating costs, maintenance, training and disposal costs. This holistic cost analysis enables well-informed procurement decisions and provides cost transparency within complex supply chain structures.<\/p>\n<h2><strong>What is TCO in procurement, and why is it so important?<\/strong><\/h2>\n<p><strong>Total Cost of Ownership (TCO)<\/strong> refers to the total cost of a product or service from the time of purchase through to disposal. Unlike the purchase price alone, TCO takes into account all direct and indirect costs incurred throughout the product\u2019s or service\u2019s entire useful life.<\/p>\n<p>The strategic importance of TCO lies in creating genuine cost transparency. Many companies make purchasing decisions based solely on the lowest purchase price, thereby overlooking hidden follow-on costs. A thorough TCO analysis uncovers these hidden cost drivers and enables sustainable purchasing decisions.<\/p>\n<p>Particularly in complex supply chain structures, TCO becomes a crucial tool for supplier management and risk management. This methodology helps to make the value chain transparent and to identify opportunities for optimisation that have a direct impact on results.<\/p>\n<h2><strong>Which cost categories are included in the TCO calculation for procurement?<\/strong><\/h2>\n<p>A comprehensive <strong>TCO calculation<\/strong> comprises four main cost categories: acquisition costs, operating costs, hidden costs and end-of-life costs. Each category includes various sub-items, which may vary depending on the sector and product.<\/p>\n<p>The <strong>acquisition costs<\/strong> include the purchase price, transport costs, customs duties, installation and commissioning. In the case of machinery used in mechanical engineering, training costs for staff and infrastructure modifications are often added to these costs.<\/p>\n<p><strong>Operating costs<\/strong> include energy consumption, maintenance, repairs, spare parts and staff costs. In the hotel industry, for example, these also include cleaning costs and regular quality checks.<\/p>\n<p><strong>Hidden costs<\/strong> are often difficult to quantify, but they are crucial: quality risks, downtime, supplier management, compliance costs and insurance. These factors can have a significant impact on overall costs.<\/p>\n<p><strong>End-of-life costs<\/strong> are incurred at the end of a product\u2019s useful life. These include dismantling and decommissioning, transport, disposal or recycling, as well as, where applicable, costs relating to hazardous substances and data erasure (e.g. for IT equipment). Depending on the product, residual values or proceeds from sale may also be offset against these costs.<\/p>\n<h2><strong>How to calculate TCO in procurement, step by step?<\/strong><\/h2>\n<p>The <strong>TCO calculation<\/strong> begins with the systematic collection of data on all relevant cost factors over the defined period under consideration. These costs are then categorised, evaluated and summarised using the formula: TCO = acquisition costs + operating costs + hidden costs + end-of-life costs.<\/p>\n<p>The first step is to define the <strong>period under consideration<\/strong> and the relevant cost categories. Depending on the product, this period can range from one year for consumables to 20 years for capital goods.<\/p>\n<p><strong>Data collection<\/strong> is carried out across departments. In addition to procurement, the production, maintenance, quality and controlling departments are often involved. External benchmark data can supplement any missing internal information.<\/p>\n<p>During the <strong>assessment and calculation<\/strong>, all cost items are extrapolated over the period under consideration. Future costs should be discounted to determine their present value. Integration into existing procurement processes is achieved through standardised TCO templates and clear assessment criteria.<\/p>\n<h2><strong>What common mistakes should be avoided when calculating TCO?<\/strong><\/h2>\n<p>The most common mistake in <strong>TCO calculations<\/strong> is incomplete data collection. Many companies only take obvious cost factors into account and overlook hidden costs such as quality risks, training costs or compliance requirements.<\/p>\n<p>Another critical error lies in the <strong>incorrect choice of time frame<\/strong>. Time frames that are too short lead to poor decision-making, as long-term cost benefits are not apparent. Conversely, time frames that are too long may be distorted by uncertainties in the forecast.<\/p>\n<p><strong>Failure to take risk factors<\/strong> into account presents a particularly dangerous pitfall. Supplier risks, fluctuations in quality or breaches of compliance can result in significant unplanned costs. A precise TCO analysis incorporates these risks through probability calculations or risk premiums.<\/p>\n<p>To avoid these errors, a <strong>systematic approach<\/strong> is recommended, involving standardised checklists, cross-departmental collaboration and regular validation of assumptions. The implementation of a structured TCO methodology lays the foundation for sustainable cost transparency and optimised procurement <a href=\"https:\/\/adconia.de\/einkaufseffizienz\">decisions within complex organisational structures<\/a>.<\/p>\n<h2><strong>How ADCONIA supports you in calculating the TCO for your procurement:<\/strong><\/h2>\n<ul>\n<li><strong>Smart cost modelling: <\/strong>Predefined TCO templates for various sectors and product categories<\/li>\n<li><strong>Risk assessment: <\/strong>Integrated risk analysis to take account of supplier and quality risks<\/li>\n<li><strong>Reporting &amp; Analytics: <\/strong>Comprehensive dashboards and reports to support strategic procurement decisions<\/li>\n<\/ul>\n<p>Optimise your procurement strategy with data-driven TCO analyses and reduce hidden costs in the long term. <strong>Contact us today for a personalised demo and find out how ADCONIA can revolutionise your procurement process.<\/strong><\/p>\n<p><strong>ADCONIA \u2013 Out of the ordinary. <\/strong><\/p>\n<p>Consulting for purchasing, supply and value chains with a focus on cost management, digitalisation, organisational development and sustainability.<\/p>\n<\/div><\/section><\/p><\/div>\n<div  class='flex_column av-ptg153-2628265ae317df0c23bc58739c0e032d av_one_fifth  avia-builder-el-9  el_after_av_three_fifth  avia-builder-el-last  flex_column_div  '     ><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":11240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_improvement_type_select":"improve_an_existing","_thumb_yes_seoaic":false,"_frame_yes_seoaic":false,"seoaic_generate_description":"","seoaic_improve_instructions_prompt":"","seoaic_rollback_content_improvement":"","seoaic_idea_thumbnail_generator":"","thumbnail_generated":false,"thumbnail_generate_prompt":"","seoaic_article_description":"","seoaic_article_subtitles":[],"footnotes":""},"categories":[1,48],"tags":[],"class_list":["post-11239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-allgemein","category-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to calculate TCO correctly in 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