Utilisation of a total cost of ownership approach for selection of logistics providers at manufacturing industries in Brazil
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
When calculating the cost of a service, the focus is often extensively on the price, and, to a lesser extent, to the related costs. Previous research has introduced the concept of Total Cost of Ownership (TCO), as a comprehensive approach to include all components of the cost, even the qualitative values. The previous studies have although focused more on products than services, and furthermore towards developed markets than developing. This study is a multiple case study at manufacturing companies in São Paulo, Brazil, which aims to examine if the previous literature findings are applicable for the selection and evaluation of logistics providers in Brazil. The results show that TCO is utilisable for services with some minor modifications. The findings also point out that the need for a deviation management system when developing a TCO model is greater in Brazil compared to more developed markets. We conclude that there is no single best way to manage TCO for services. Moreover, there is a set of approaches and models with common components, which are applicable and provide good results.
Place, publisher, year, edition, pages
2014. , 84 p.
Total Cost of Ownership, Supplier selection, Services, Logistics providers, Manufacturing industry
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-159288OAI: oai:DiVA.org:kth-159288DiVA: diva2:784113