The hidden costs of ownership

Many businesses aren’t aware of the hidden costs that are associated with owning a product, from inventory carrying through to obsolescence. AT MSC, we can help you avoid these hidden costs, read on to find out how.  

The total cost of ownership shows the true costs of getting your product from a supplier, including the initial search for product quotes through to purchase and use of the products on live jobs.  
 
When it comes to purchasing a product, only around 8% of the costs are associated with the product cost itself. Up to 92% of the rest of the costs can be hidden, including: 

67% of the costs of owning a product can come from inventory and operation costs, such as: 
Inventory carrying 
Obsolescence  
Tool Crib 
Receiving and Inspecting  
Material Handling 
Productivity 
Risk  

The remaining 25% of product ownership costs can be the result of procuring the product , including:  
Demand planning 
Supply planning 
Data & Supplier Management 
Accounting  
Expediting  

Engineering and manufacturing businesses face multiple challenges including the management of production pressures and addressing things like cost per part. So, it’s understandable that when you’re looking for your parts, you want to save money wherever you can.  
 
At MSC, we offer a consultative approach aimed at helping you avoid unnecessary extra costs, offering a solution that is right for you and helping free up your time to focus on what’s important to your business.  
 
From supporting you with your tool selection to our bespoke tooling packages, we are a full supply chain partner offering a non-biased approach to product selection. Find out more about how our engineering capabilities can help you here.