TCO – Total Cost of Ownership
TCO stands for Total Cost of Ownership: the total costs over the period of use being considered. For thermal packaging, this assessment goes beyond the purchase price. A meaningful comparison allocates all relevant costs to a common reference unit, such as a shipment completed in accordance with its specification.
Which costs belong in the comparison?
- Packaging and spare parts, storage, preconditioning, energy and packing labour.
- Freight, including any effects of volumetric weight and additional handling.
- For reusable systems: return transport, inspection, cleaning, failures, losses and the required circulating stock.
- Qualification, monitoring and appropriately assessed consequential costs of excursions or product losses.
How can single-use and reusable packaging be compared fairly?
Both solutions must meet the same transport requirements and quality standards. Assumed cycles, return rates and costing periods must be disclosed. For example, the cost of reusable packaging is spread over a realistic number of uses, rather than an unsubstantiated maximum. TCO is a cost assessment; an environmental assessment requires additional data and its own evaluation method.
Related terms: Reusable Packaging · Single-Use Packaging