Total cost of ownership

Save on your local purchasing costs

Total Cost of Ownership is an important key performance indicator in today’s business operations. It refers to the overall cost of a component or consumable throughout its life cycle.

The TCO is much more than just the purchase price and it incorporates all the costs that can occur during the lifetime of a product, such as: purchases, stock, logistics, maintenance and repairs.

Knowing this total cost of ownership provides an additional opportunity to create value. A real decision-making aid, the TCO calculation opens the way to optimizing expenses and long-term savings.

Long-term approach

Improve your processes and save money in the long term

For SOFENGI, the TCO approach is not limited to a one-time discount on the purchase price, which will gradually increase due to inflation. It is a mutual commitment in which we examine together the options to reduce the total costs of the chain.


Of course, by optimizing the purchasing process, but also, for example, by looking for alternatives to business-critical components or consumables for the company. First, quick save, then process improvements that have more impact and allow long-term savings.

Sustainable savings

The path to sustainable savings regarding total cost of ownership


The total cost of ownership of a product is the sum of all costs incurred to have an item available. With low-value products, acquisition costs alone can represent more than 80% of the purchase costs of the products. Acquisition costs include inventory maintenance, transportation costs, management ...

TCO identification is often only addressed when there is a problem with a machine or component. But to have the greatest possible impact, it must be taken into account from the start of the investment.

There are four main areas where TCO can be reduced:

      Technical
      Security
      Process
      Storage

Business process analysis

Create value and optimize your expenses

SOFENGI is your partner and will assist you in defining where exactly in your business processes the TCO can be reduced quickly and permanently . Our team supports you in performing a quick analysis of your purchases and offers you alternatives to assess the expected savings. You will be surprised at the improvements you can get with SOFENGI and the resulting savings.

Some concrete examples:

  • Increase availability; improve available production time
  • Reduce unplanned and planned downtime
  • Reduce energy costs
  • Work in safe conditions


Technical aspect

Reduce your downtime and optimize your processes

When it comes to the technical aspect, having the right product in the system is essential. Using components such as valves and gauges that do not withstand the requirements of the application can lead to premature failure and frequent failures. Whenever this happens, costly unexpected downtimes are associated.


You may first think that a cheaper product will be more profitable. But often it will not perform as well or last as long as a more expensive part. Extending life is the single most important parameter in reducing TCO. If you can extend the length of maintenance and service intervals, you can significantly improve your TCO. A product with a higher purchase cost is likely to have better performance, resulting in less maintenance costs.