CTS (News - Alert) Guides, a publisher of manufacturing software reviews and evaluation tools, has added a new report to its website that assists ERP software buyers in understanding and calculating the total cost of ownership (TCO).

The free report available on the company website, “Calculating Total Cost of Ownership: An Important Measurement of ROI,” focuses on the factors that contribute to TCO and highlights why ERP software is a strategic investment for business growth.

Though many ERP software buyers understand the definition of TCO, they may not be able to calculate TCO, CTS Guide finds. Unlike the cost of tangible capital purchases like a production line, ERP software has many hidden costs. The hidden costs make the process of calculating the TCO difficult.

Understanding the key elements of TCO is important for comparing different ERP software proposals, negotiating with vendors, planning cash expenditures and evaluating return on investment.

The report from CTS Guide is available for instant access to customers. It does not require any registration. The report addresses several aspects of TCO, including software licensing, infrastructure, maintenance and third-party add-on tools.

“In today's economic climate, it's important for companies to make strategic technology investments that deliver a measurable ROI,” said Sheldon Needle, president of CTS, in a statement. “Calculating total cost of ownership is an important first step in determining how quickly your investment will pay off."

CTS offers MRP software buyers a free Manufacturing Software Selection Kit that has reviews of manufacturing software packages, including functionality specifics, module-by-module benefits, system strengths and weaknesses, product pricing and more.

CTS Guides recently announced that its free Smart Shortlist Consult saves business management and accounting software buyers hours of due diligence. Companies spend thousands of dollars on consulting fees before selecting a new system for a new business since the busy business owners and managers don't have the time to perform the required due diligence.