This is a total cost of ownership model used in supply chain that maps out all cost components and provides a related visual for communication purposes. This tool is highly effective when dealing with customers who are always looking for price breaks, as it shows key cost drivers, often times which are out of your control (ie. commodities, energy, freight, etc).
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Source: Supply Chain - Total Cost of Ownership Model + Waterfall Excel (XLS) Spreadsheet, T. Glassman // Exelis Capital & Advisory
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