06/06/2026
If your procurement team is optimizing for piece price, you might be solving the wrong problem.
GE Appliances made this discovery after years of effective supplier negotiations. A part sourced from a lower-cost region might look like a win on the spreadsheet, but that changes when you factor in transportation costs, logistics complexity, carbon impact, and supply risk. The standalone savings can disappear entirely when you account for total landed cost.
The company's response: move away from a cost-first philosophy and adopt a full total cost of ownership (TCO) model across the product lifecycle. That shift required new data, new processes, and a different conversation with senior leadership. One focused on margin impact rather than just savings.
Their former Chief Procurement Officer put it plainly: sometimes there's no piece price reduction. But the total value chain landed cost is where procurement actually creates a competitive advantage.
See how GE Appliances restructured its sourcing around TCO and what that shift actually required 👉 https://www.apriori.com/blog/how-ge-appliances-optimized-its-supply-chain/?utm_source=facebook&utm_medium=social-media&utm_campaign=fy27-q1-en&utm_content=ge-appliances-optimized-its-supply-chain-blog-060626