Why should performance be at the center of cost management?
Too often, purchasing decisions are driven by price or Total Cost of Ownership (TCO). While these metrics matter, they overlook a critical dimension: asset availability. Every hour of downtime can generate losses that far exceed maintenance savings through missed operations, dissatisfied customers, and even contractual penalties.
This position paper addresses a common blind spot: Finance and Procurement frequently operate in silos, each optimizing part of the problem without securing overall performance. The real shift lies in moving from “buying a product or service” to “buying its ability to create value.”
Inside, you’ll explore:
- Why TCO alone is not enough and how to factor revenue contribution into decisions
- The essential KPIs for performance management: availability rate, MTBF, MTTR, and cost of downtime
- Practical levers for performance-based contracting, including SLAs, bonus-malus systems, and RAM reporting
- A governance model that unites Finance and Procurement to align costs, performance, and value creation
Download the full position paper to discover how availability can become a strategic advantage and why performance should be the cornerstone of your procurement strategy.
