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Total Cost of Procurement (TCP)

Total Cost of Procurement (TCP) is a cost concept that includes all of the costs associated with buying goods, services or assets. Generally it includes the net price plus all other costs incurred to purchase the item and get it to the point of use or a designated storage holding place; for example sourcing, logistics, tracking and expediting, regulatory compliance, financing, all-party’s G&A and fulfillment errors including stock outs.