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LCC-driven procurement |
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| Life cycle costs are the most complete cost indicator and at the same time favour energy efficient technologies.
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Technology field: Management and organisation
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General information
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General criteria
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Environmental criteria
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Economic criteria
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Application outside railway sector (this technology is railway specific)
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Overall rating
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Overall potential: very promising |
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Time horizon: mid-term |
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An increased role of LCC in railway purchasing decisions is one of the key success factors for a rapid diffusion of innovative technologies for energy efficiency. At the same time, in a cost perspective focusing on the whole company rather than individual departments or sub-companies, a more LCC-driven procurement could make a valuable contribution to cost efficiency. Success factors are bonus rules in procurement contracts or better verification of LCC guarantees. Barriers are high and are mainly concerned with the high degree of cost segmentation within railways and the lack of corresponding financial interfaces between individual departments. In view of the clear win-win situation for the environmental and economic performance of both railways and industry, the issue should be given high priority. |
 date created: 2002-10-09 |
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| © UIC - International Union of Railways 2003 |
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