A procurement manager is evaluating two potential suppliers for a critical component. Supplier A offers a lower price per unit, but their facility is located overseas, leading to higher transportation costs, longer lead times, and potential import duties. Supplier B has a higher unit price but is located domestically, offering lower shipping costs and faster delivery. To make the most cost-effective decision for the organization, which of the following concepts should the manager primarily apply?
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A
Landed Cost Analysis
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B
Total Cost of Ownership (TCO)
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C
Make-or-Buy Analysis
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D
Spend Analysis