STRATEGIC PLANNING USING THE TOTAL COST OF OWNERSHIP MODEL

Abstract

In a highly competitive global scenario, companies seek new ways to optimize production and implement continuous improvement mechanisms to reduce costs. An essential tool in this context is the Total Cost of Ownership model, applied to the acquisition processes of inputs to determine the costs involved and compare the economic viability between domestic and international suppliers. Given the unstable economic scenario and high exchange rate fluctuations, the possibility of nationalizing production is evaluated. The case study method is adopted, characterized as applied and exploratory research, with the objective of generating knowledge for practical application and solving specific problems. This method combines a literature review with exploratory field analysis. The studied company faces a loss of profitability due to rising import costs, reduced demand, and the loss of purchasing power of the national currency against international suppliers. The increase in costs resulting from exchange rate fluctuations necessitates the search for new supply options, primarily in the domestic market, where exchange rate influence is lower. Thus, the nationalization of inputs becomes crucial in business decisions to minimize costs and maintain competitiveness. The results indicate that the nationalization of production using the Total Cost of Ownership model is viable. This model considers all costs involved in the acquisition of inputs, unlike the traditional acquisition model, which focuses exclusively on the unit price.