Total Cost of Ownership Total Cost of Ownership Posttransaction Components Pretransaction Components Transaction Components 1.Line fallout 1.ldentifying need 1.Price 2.Defective finished goods 2.Investigating sources 2.Order placement/ Rejected before sale 3.Qualifying sources preparation 3.Field failures 4.Adding supplier to 3.Delivery/transportation 4.Repair/replacement Internal systems 4.Tariffs/duties in field 5.Educating: 5.Billing/payment 5.Customer goodwill/ .Supplier in firm's operation 6.Inspection reputation of firm .Firm in supplier's operation 7.Return of parts 6.Cost of repair parts 8.Fllow-up and correction 7.Cost of maintenance and repairsPretransaction Components 1.Identifying need 2.Investigating sources 3.Qualifying sources 4.Adding supplier to Internal systems 5.Educating: •Supplier in firm’s operation •Firm in supplier’s operation Transaction Components 1.Price 2.Order placement/ preparation 3.Delivery/transportation 4.Tariffs/duties 5.Billing/payment 6.Inspection 7.Return of parts 8.Fllow-up and correction Posttransaction Components 1.Line fallout 2.Defective finished goods Rejected before sale 3.Field failures 4.Repair/replacement in field 5.Customer goodwill/ reputation of firm 6.Cost of repair parts 7.Cost of maintenance and repairs Total Cost of Ownership Total Cost of Ownership