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  In the increasingly competitive global marketplace, manufacturers need to continually strive to reduce costs to keep or increase market share. This is one of the key factors in making the decision of whether to make parts in-house, outsource to domestic suppliers, or outsource offshore. Even after a company makes the decision to outsource to a supplier, most don't look beyond the quoted unit price in making the decision about which supplier to select. This is especially true when comparing the quotes for domestic vs. offshore suppliers. Some companies choose to outsource offshore because the price is cheaper than a domestic supplier. They don't add in the costs for transportation, much less all of the other "hidden costs" of dealing with an offshore supplier. In order to make the correct decision for outsourcing, a company needs to understand the concept of "total cost of ownership" for outsourcing manufacturing. What is "Total Cost of Ownership?"