Provide an example of higher TCO based on international trade, global supply chain.
As a supply chain consultant for a global company one has to be aware of the extra costs of importing goods into the US. US Customs can add significant costs to ownership when you add Anti-Dumping (AD) and Countervailing (CV) Duties to the equation. The amount of these duties are not know at the time of purchase or importation. US Department of Commerce International Trade has 5 years to review and assess AD/CV duties. The percent of duty plus interest on the duty can double the cost of ownership and can vary greatly by manufacturer and country of origin. These duties are setup to protect US manufacturers from foreign government subsidizes (CV) or selling/dumping product in the US below the US market or cost of production (AD). Ultimately, the difference in perspective between a traditional adversarial and more con- temporary collaborative procurement strategy can be summarized as a focus on Total Cost of Ownership (TCO) as contrasted to a focus on purchase price.
Each of you should provide an example of higher TCO based on international trade, global supply chain. Initial post should be at least 250 words.
As a supply chain consultant for a global company one has to be aware of the extra costs of importing goods into the US. US Customs can add significant costs to ownership when you add Anti-Dumping (AD) and Countervailing (CV) Duties to the equation. The amount of these duties are not know at the time of purchase or importation. US Department of Commerce International Trade has 5 years to review and assess AD/CV duties. The percent of duty plus interest on the duty can double the cost of ownership and can vary greatly by manufacturer and country of origin. These duties are setup to protect US manufacturers from foreign government subsidizes (CV) or selling/dumping product in the US below the US market or cost of production (AD). Ultimately, the difference in perspective between a traditional adversarial and more con- temporary collaborative procurement strategy can be summarized as a focus on Total Cost of Ownership (TCO) as contrasted to a focus on purchase price.
Each of you should provide an example of higher TCO based on international trade, global supply chain. Initial post should be at least 250 words.
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