What does the procurement function primarily depend on when evaluating TCO procedures?

The procurement function primarily relies on input from cross-functional teams when evaluating Total Cost of Ownership (TCO) procedures because such assessments require diverse perspectives and expertise. A cross-functional team brings together members from various departments—including finance, operations, supply chain, and quality control—each of whom can contribute unique insights into different aspects of the procurement process. This collaborative approach helps ensure that all relevant factors, such as cost, quality, supplier reliability, and service support, are considered when calculating the total costs associated with a procurement decision.

While market trends, supplier performance, and industry regulations are all important components to consider in the procurement function, they mainly inform specific aspects of decision-making rather than provide a holistic evaluation. Market trends allow organizations to stay agile in response to external changes, supplier performance metrics help assess current suppliers, and industry regulations ensure compliance. However, the integration of insights across multiple functions through a cross-functional team is essential to effectively evaluate TCO, leading to more informed and strategic procurement decisions. This comprehensive evaluation ultimately supports better alignment of objectives and enhances the overall effectiveness of procurement operations.