Notes
Slide Show
Outline
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Executive Summary
  • Over 70% of respondents are only at the initial stages of planning and/or implementing a TCO approach.  Yet, TCO is recognized as the touring pro's edge in driving Supply Chain performance and value.
  • 100% of respondents recognize the value of TCO buy / sell philosophies, at the same time their companies have not advanced the concept beyond discussions and informal processes.
  • Over 80% of respondents personally believe a TCO approach delivers good to very high value .  There in lies the paradox, the vast majority of business professionals firmly believe in TCO value, yet their companies do not have in place the philosophies, practices or metrics – Corporate TCO performance lags person beliefs.
  • 100% of the respondents  see TCO as the future for developing and improving supply chain performance.  Almost a 50/50 split, 48% believe some will use it, yet most won't, while 52% believe most will use it, indicating this is not just another short term business fad.


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Agenda
Mastering the Best Practice Paradox
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Background
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Which of the following best describes why you’re at this session ?
  • Boss made me come
  • We’re planning to try TCO
  • We’ve started, < 50% complete
  • We’re started, > 50% complete
  • We’re good now (+75%)
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Current State
  • Price stability
  • Supply Assurance
  • Shrinking Supply Base
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Which of the following best describes your firm’s TCO buy/sell philosophy ?
  • Don’t have a TCO buy/sell philosophy
  • Talk about it, not written
  • Talk about it, informal process infrequently used
  • Written TCO approach, most decisions are price and delivery
  • Written, cross functionally ratified strategy.  Buy/sell on TCO
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Current State
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In today’s business environment, I believe using TCO in establishing buy/sell relationships has;
  • No real value
  • Limited value, diminishes through time
  • Some value, sustained at this level
  • Good value, that can be the determining factor
  • High value, TCO will be the determining factor
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TCO Philosophies
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Current State
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I believe the future of TCO in establishing and maintaining buy/sell relationships
  • No future, is dead now
  • Useless, once we get back to a buyer’s market
  • Some will use it, most won’t
  • Most will use it
  • It will become the universal standard, like price is today
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14 Clubs of Performance
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What’s In Your ESC-TCO Bag?
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What’s In Your ESC-TCO Bag?
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Coaches and Caddies
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Want to Go Pro?
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Integrated Strategies Team
Steve Trecha – President and CEO
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Integrated Strategies
Mission Statement
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Integrated Strategies
Core Capabilities and Strengths
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Integrated Strategies
Capabilities: Driving Client Competitive Advantage
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