| 1/27/2009 |
Paula Rosenblum |
| TCO of Inventory? |
We spend so much time talking about Total Cost of Ownership (TCO) of IT solutions. Maybe it’s time to think about TCO of inventory. Not just return on invested capital, but the total cost to the enterprise of designing, acquiring, distributing and selling merchandise. And maybe we ought to not just measure it, but compensate the acquirer based on it. We have all the tools in the world at our disposal to perform the calculations. One might argue the state of the economy demands we do them. Perhaps we’ll still end up sourcing merchandise far from the point of demand, with long lead times…or perhaps we’ll become a more efficient industry in the truest sense of the world.
TCO of Inventory. I like the term. Do you?
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| keywords: Retail, IT, Inventory, TCO, Merchants |
