The Use of Total Cost of Ownership Concepts to Model the Outsourcing Decision

Lisa Marie Ellram · Arnold Maltz

69 citations0/0 files storedThe International Journal of Logistics Management

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Outsourcing and Supply Chain Management Multi-Criteria Decision Making Life Cycle Costing Analysis

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Abstract The outsourcing decision considers the issue of whether an organization should perform certain activities internally or purchase these services from third parties. One of the key issues in outsourcing is the potential for cost reduction. This paper suggests the use of total cost of ownership (TCO) analysis as an excellent approach for understanding the true cost implications of the outsourcing decision, rather than focusing on price.

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2017A multi-criteria sustainability assessment for biodiesel and liquefied natural gas as alternative fuels in transport systems 2014Management accounting and decision making: Two case studies of outsourcing 2009Low cost country sourcing and its effects on the total cost of ownership structure for a medical devices manufacturer 2005A Balanced Approach to Research in Supply Chain Management 2007Total acquisition cost of overseas outsourcing/sourcing: a framework and a case study 2010Value co‐creation and resource based perspectives for strategic sourcing 2010A FOUR-FILTER METHOD FOR OUTSOURCING TO LOW-COST COUNTRIES 2001Views on inter-enterprise relationships

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