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Procurement

TCO Automation

TCO Automation gives your company a clear, holistic view of all supplier costs — automatically, securely, and fully compatible with Microsoft 365 and Azure Foundry.

PromptingBirds implements the solution end-to-end, onboards your teams, and ensures smooth ongoing operations.

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  • Definition

What is TCO Automation?

TCO Automation automatically calculates the total cost of ownership of a product or service, including hidden cost drivers such as service, transport, and storage.

The process provides procurement and management teams with a reliable, structured, and complete decision foundation — consistent, transparent, and easy to understand.

  • Opportunities

The opportunities TCO Automation unlocks

Monthly evaluation of 100% of all relevant offers instead of selective samples.
Unified and transparent decision criteria for procurement and management.
Up to 80% reduction in manual research through automated data aggregation.
Improvement in decision quality through complete cost visibility.
  • Process

How does TCO Automation work?

1
Data extraction
Cost factors from ERP & documents
2
Analysis
Automated TCO calculation
3
Comparison
Supplier evaluation
4
Decision
Clear selection basis

Result

The automation connects data from ERP, Excel, and SharePoint, calculates TCO per supplier, and delivers clear decision-ready insights — fast, reliable, and secure.

  • Business Value

Benefits for companys

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Better decisions
complete cost visibility
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Less manual work
automated data collection & analysis
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Consistent processes
standardized evaluation criteria
  • ROI

Business Impact

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higher decision quality
Holistic cost transparency consistently guides teams to the optimal supplier choice.
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annual impact
TCO-driven supplier selection reduces long-term procurement spending.
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Full transparency
Every decision becomes traceable and audit-ready.
  • Security

Security & Compliance

The solution processes only internal data sources and remains fully GDPR-compliant.
Role-based access protects sensitive procurement information.
Every calculation step is documented and audit-capable.
Compatible with Microsoft 365 & Azure Foundry for maximum operational safety.
  • Expertise

Who is behind the solution?

Andreas Maring, Senior AI Product Manager at PromptingBirds
He combines strategic product thinking with practical execution, guiding companies safely into AI-supported operations.
“A good workflow doesn’t feel automated — it just works. AI makes that possible: less friction, more focus, better outcomes.”
  • AI Workflows

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  • Q&A

FAQs

1
What is TCO Automation?
TCO Automation refers to the automated calculation of all direct and indirect costs within a supplier offer. The solution gathers data from ERP systems, Excel files, and documents, analyzes them, and delivers a clear foundation for decision-making. Your teams benefit from speed, accuracy, and full transparency.
2
Which data sources are used?
The automation uses internal sources such as ERP systems, offer sheets, and Excel files. Relevant fields are extracted automatically. Missing values can be added manually without disrupting the workflow.
3
Who benefits from TCO Automation?
Procurement, controlling, and management teams gain a unified view of total costs, enabling faster and more confident decisions.
4
How reliable is the automated calculation?
The calculation is based on defined logic, structured data, and repeatable rules. This ensures consistent, audit-ready, and unbiased results.
5
When is the automation triggered?
The workflow begins as soon as multiple offers are available for a purchase. Procurement receives a complete TCO evaluation immediately.
6
How are errors or missing fields handled?
If data is missing, users receive a targeted prompt to complete the information. The workflow remains stable and transparent.
7
What advantages does the solution offer in daily work?
Teams spend less time searching for information and more time on negotiation and strategic work. Decisions become clearer, faster, and better supported.
8
Is the solution secure and GDPR-compliant?
Yes. All processing remains within internal systems. PromptingBirds relies on secure architectures, role-based permissions, and audit-ready workflows.
9
How long does implementation take?
Typically a few weeks. PromptingBirds handles implementation, integration, and enablement — without requiring complex technical preparation.
10
Can the TCO Automation be expanded?
Absolutely. The solution is modular and can be extended with additional cost factors, supplier data, or automated reports.