Reducing the total cost of procurement while improving local service levels
VNA's Total Cost of Ownership (TCO) programs are designed to improve the efficiency of all of the resources implied within our customer's facilities, be it technical, financial, or labor related. When we are able to improve the efficiency of these resources, the direct result is a Lower Total Cost of Ownership for our customers.
Our focus on TCO goes way beyond considering delivered price as the only factor in reducing costs. We want to expand the view of where there are other costs, which can be reduced. We want to help our customers reduce their costs associated with their operations and manufacturing; an area where the additional strengths of the VNA channel gives us a clear advantage for our customers.
Since our channel has many other advantages besides competitive pricing, we try to pinpoint additional influences to the customer's bottom line such as:
- High-performance channel logistics
- Operational efficiency
- Technical expertise which enhances production
- The value of local support and training
- Product standardization, consolidation and migration
- Inventory reduction and optimization related services
The goal of our TCO program is to show our customers where we can help lower your overall TCO within your operations. Also, remember that when we look at the different ingredients that make up TCO, we will show how different elements are "visible" to different functional areas, e.g.: Purchasing, Engineering, Manufacturing and Finance.
Program Significance
Our TCO programs create the opportunity to engage in a dialog for increased commitment to partnership. The VNA channel has many existing tools that can help to do this.
Technology migration is a key part of our ability to reduce purchase price. It is our goal to reduce cost while increasing the functionality of the products we sell. When we work in partnership with a customer, we get to know their application needs better, and we capitalize on that knowledge with cost effective technology solutions and value-add investments. We break TCO into categories. Each category symbolizes areas in which a customer can truly impact their bottom line.
A new beginning to National Contracts
Vanguard National Alliance now offers a selection of integrated products and self-assessment services to help you develop your TCO strategy and tactics to measure and reduce your company's Total TCO. With our Logistics Supply and TCO programs, customers are able to have confidence that their selection of a supplier is for the long term and that they will not have to "re-bid" the same commodity group year after year based on supplier lack of performance and lack of showing savings beyond just price related savings.
Total Cost of Ownership (TCO)
Our TCO Measurement methods help you gain an understanding of your visible and hidden costs within the electrical supply MRO environment and then suggest improvements within your processes, asset management expenditures and services platform. Armed with this knowledge you will be better equipped to: - Tactically plan your MRO direction with effective planning
- Provide better service to your plant with less expenditures
- Lower the average cost of procurement across all your locations
- Measure and manage your costs and need for services which will eliminate future expenditures
- Lower cost through leverage and migrating into newer technology plant wide
Our process consists of creating a TCO vision, developing the TCO plan, removing the obstacles and developing a system and culture to support the ongoing development, expansion and execution of the program.