Total Cost of Ownership (TCO) Analysis
3-year TCO analysis across the full vendor portfolio including projected volumes and costs.
3-Year TCO Calculation Methodology
Volume Estimation
Annual Volume = monthly_capacity × 12 × 0.5
Logic: Assumes 50% capacity utilization as realistic operational level unless demand forecast is available.
Total Landed Cost
TLC = unit_price + freight_cost + (unit_price × tariff_rate)
Components: Base unit price, freight costs, and applicable tariffs per part.
3-Year TCO
TCO = Σ(Annual Volume × TLC × 3)
Aggregation: Sum across all parts per vendor, then across selected portfolio.
TCO Methodology
Volume Calculation
Annual volume = Forecast demand OR 50% of monthly capacity × 12 months
Cost Components
Total landed cost = Unit price + Freight + Tariffs (per unit)
3-Year TCO
TCO = Annual volume × Total landed cost × 3 years
TCO Distribution by Vendor
Top vendors by 3-year total cost of ownership
CN • 2 parts
EU • 2 parts
EU • 3 parts
US • 2 parts
KR • 3 parts
CN • 4 parts
KR • 4 parts
CN • 3 parts
US • 1 parts
EU • 2 parts
Vendor TCO Analysis
| Rank | Vendor | Region | Parts Count | 3-Year TCO | TCO per Part | Portfolio % | Actions |
|---|---|---|---|---|---|---|---|
| 1 | China Manufacturer 1 | CN | 2 | $300,256,616 | $150,128,308 | 26.0% | Details |
| 2 | European Advanced Systems | EU | 2 | $214,213,153 | $107,106,577 | 18.5% | Details |
| 3 | European Battery Systems | EU | 3 | $197,291,206 | $65,763,735 | 17.1% | Details |
| 4 | US Premium Electronics | US | 2 | $166,877,739 | $83,438,869 | 14.4% | Details |
| 5 | Korea Electronics Corp | KR | 3 | $66,999,233 | $22,333,078 | 5.8% | Details |
| 6 | China Manufacturer 3 | CN | 4 | $66,464,137 | $16,616,034 | 5.7% | Details |
| 7 | Korea Advanced Materials | KR | 4 | $61,284,277 | $15,321,069 | 5.3% | Details |
| 8 | China Manufacturer 2 | CN | 3 | $57,437,677 | $19,145,892 | 5.0% | Details |
| 9 | US Specialty Materials | US | 1 | $8,466,429 | $8,466,429 | 0.7% | Details |
| 10 | European Precision Tech | EU | 2 | $4,872,831 | $2,436,415 | 0.4% | Details |
| 11 | China Manufacturer 4 | CN | 1 | $3,431,988 | $3,431,988 | 0.3% | Details |
| 12 | European Precision Components | EU | 1 | $3,369,921 | $3,369,921 | 0.3% | Details |
| 13 | Vietnam Specialty Co | VN | 1 | $1,237,493 | $1,237,493 | 0.1% | Details |
| 14 | US Standard Components | US | 2 | $935,245 | $467,623 | 0.1% | Details |
| 15 | European Basic Electronics | EU | 5 | $811,020 | $162,204 | 0.1% | Details |
| 16 | India Circuit Systems | IN | 5 | $616,422 | $123,284 | 0.1% | Details |
| 17 | China Manufacturer 5 | CN | 3 | $548,183 | $182,728 | 0.0% | Details |
| 18 | Mexico Components Ltd | MX | 6 | $473,440 | $78,907 | 0.0% | Details |
| 19 | Vietnam Tech Assembly | VN | 5 | $455,684 | $91,137 | 0.0% | Details |
| 20 | India Sensor Works | IN | 4 | $185,593 | $46,398 | 0.0% | Details |
| 21 | Mexico Advanced Components | MX | 3 | $167,997 | $55,999 | 0.0% | Details |
Highest TCO Vendors
Top 3 vendors by total cost impact
CN • 2 parts
EU • 2 parts
EU • 3 parts
Cost Optimization Opportunities
Potential areas for cost reduction
21 vendors with TCO > $100K
1 vendors with 5+ parts
Top 3 vendors: 61.5% of portfolio