The TCO Toolkit™ is an independent, vendor neutral, "value calculator" that leverages activity based costing principles. It is used to document cost savings and incremental profit gains delivered to sourcing’s internal customers by target TCO Case Study products and services. The TCO Toolkit™ serves as a "how-to" kit for value based sourcing approaches in a B2B context. The TCO Toolkit™ is for the business leader or sourcing manager that buys products for businesses (B2B) who wants to get a better return on their spend by quantifying (in terms of dollars) the benefits and savings for their strategic applications in their strategic sourcing initiatives.
The TCO Toolkit™ provides better credibility than creating your own TCO tools, because TCO Toolkit™ is an independent vendor neutral SaaS tool that will be* easily sharable, templatable, and measureable. Because of this, you can also ask your vendors to sign up, complete their TCO analysis in the TCO Toolkit, and send the link* to you, so you can outsource some of the analysis, yet use a common TCO/value rollup format. In time*, this tool will also be integratable into your ERP apps via API. In addition to documenting the value at initial purchase, you and your supplier can* use the TCO Toolkit™ to “Keep score” on value performance based contracts.
Going through the TCO Toolkit™ process can help make stronger value propositions for your spend, quantify vendor value claims, construct business cases for change, tailor spend, and transform the sourcing team into "value buyers" for the select strategic sourcing applications that require this review. We are also working* on a TCO Toolkit vendor rating tool, where you can share/post your TCO Case study within your network.
The TCO Toolkit approach is based off the founders’ experience implementing similar tools at Industrial B2B Fortune 500 companies, with an installed base experience of hundreds of end users, thousands of TCO Case Studies, and many millions of dollars of customer value delivered and documented, along with supporting performance based contracts.
Disclaimor: We are in Beta. "*" indicates product vision based on past related experience.