Total cost of ownership is a methodology and philosophy that looks beyond the price of a purchase to include many other purchase related costs in making the purchasing decision. However the numbers of papers that aim to illustrate the application of this methodology in practice are still very limited. In this paper, we illustrate how the total cost of ownership (TCO) can affect the sourcing decisions for the major consumer product. Currently, based on the DDP price, the product is purchased and imported from suppliers in Philippines to be sold in Thailand. However, under DDP price the other cost such as inventory management cost, warehouse management cost and risk cost are not considered. Therefore, the company tends to obtain the product with a cheaper price but a higher risk and a higher logistics cost. To look for the best choice for the business, four sourcing alternatives were proposed and evaluated based on the total cost of ownership and the risk cost. The four alternatives include purchasing the product from international suppliers in Philippines, Indonesia, Australia, and one local supplier in Thailand. The result from the study indicate the potential savings by changing the sourcing policy from relying only on supplier in Philippine to relying on both Philippine and Thailand suppliers.