EXPLORING THE BLACK BOX OF PURCHASING: TOTAL PROCUREMENT COSTS

摘要

Unraveling Total Procurement Cost (TPC) aids buyers by considering all costs associated with buying an item. This paper seeks to understand TPC in the light of supplier performance and proposes a framework for buyers to comprehend TPC as a tool for supplier evaluation and subsequently for supplier selection. Our TPC framework provides the necessary fuel towards supplier development, touted as an important first step towards long-term buyer-supplier relationships.