Applying Total Costs of Ownership (TCO) to Examine the Best Logistics Providers

Abstract

Further scientifically finding of total logistics costs model during execution the cement projects in Indonesia, the consecutive further tasks are how to examine the best logistics' provider to perform the logistics' works. This is the ultimate goal of this chapter. The methodology developed is by case study, elaborate techniques of focus group discussion (FGD), expert judgment (EJ), and enriched by the analytical hierarchical process (AHP) to obtain the best decision. The finding is the total costs of ownership (TCO) as the best tool to examine several considerations to select the best provider's candidates can be applied. Data as sources of this chapter are consolidated from the cement projects in Indonesia from 2010 to 2018. During the period, cement projects in Indonesia were rampant, and certainly, it demanded logistics providers. The TCO in practical fits during procurement-processes, it is also valuable during the selection of the logistics' providers. The TCO is fair enough as the best tool to build governance during procurement to avoid miss-discrimination-treated.