What do whole-life costs (WLC) assess?

Whole-life costs (WLC) focus on evaluating the total cost of an asset throughout its entire lifespan, not just its initial purchase price. This includes all costs associated with the asset, such as acquisition costs, maintenance, operation, and disposal costs. By considering the complete financial impact of an asset over time, organizations can make more informed procurement decisions that align with their long-term strategic goals and ethical standards. WLC assessments allow businesses to look beyond short-term savings and understand the bigger picture, which is essential for effective ethical procurement and supply management. This comprehensive perspective ensures that organizations aren't just minimizing costs upfront but are also recognizing potential future expenditures and sustainability impacts related to the asset.