Supplier selection is one of the most important activities performed in today's business environment. Making a wrong decision in this field can result in operational and financial problems for the company. Based on previous experiences, sourcing experts already know that selecting a supplier from the lowest bid is not ideal, as lower prices usually hide lower qualities. From this perspective, the Total Cost of Ownership (TCO) concept is a reliable tool for successful supplier selection. In general, TCO is a calculation intended to highlight the difference between the short-term purchase price and long-term cost that occur during the entire life cycle of the item in the organization. Such analysis can also help to make critical make vs. buy/outsource comparisons.