Suppose Takealot.com is considering replacing its packaging supplier with a new vendor offering lower unit prices. However, the new supplier is located in a remote province and has longer lead times. The finance and supply chain teams are concerned about the long-term financial implications. Which one of the following factors should Takealot.com consider when evaluating the total cost of ownership (TCO) of the new supplier?

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Transportation costs, lead times, delays frequency, and stockouts' impact on customer satisfaction.

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Indirect costs, such as the marketing potential due to the supplier’s environmentally friendly brand.

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Direct costs such as the quoted unit price per packaging box offered by the new supplier.

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The new supplier's administrative and additional logistics costs.

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Suppose Takealot.com is considering replacing its packaging supplier with a new ...

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