Xyz Pharma Case Analysis

Xyz pharma are currently one of the leading drug wholesale dealer in India with an annual sales of 200 million US$ and daily shipments of over 75,000 units. The business of the company is basically healthcare services.
The company has 16 distribution centers located throughout India.IT conducts business through two operating units : Medi corps and Vaidya retail stores,inc : the latter is dealing with franchising and wholesaling to the franchised store while the former deals with distribution to individual stores and in the provision of information-based services and managed care.
The company currently uses traditional accounting softwares and different softwares for each process to run its business. Their distribution and warehouse directors

Ownership brings not just the cost of purchase but also other costs like installation, deployment, operations, upgrading and the maintenance of the technology. Due to this TCO is often called the analysis of life cycle costs.
Many times organizations seek only the lowest bid on a new solution or system purchase. This approach can lead to overlooking many of the above mentioned costs thereby drive the ultimate price skyward.
With high amounts of money spent on IT investments, it is advised to improve the efficiency of the technology platforms. Many organizations are changing to a realistic examination of all costs associated with using technology. Therefore TCO comparisons provides for a real world gauge to accurately determine all the anticipated costs .

TCO costs need not be complicated but must consist of the following cost components:
Physical hardware /Acquisition