Make vs Buy

Careful consideration of cost, lead time, and supply chain issues, along with the resources and capabilities available, helps in make vs buy decisions

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How your business benefits

Aids in risk mitigation

  • While analyzing factors that can aid in make vs buy decision, long-term and short-term threats that can impact the company are identified
  • Analyzing such threats enables firms to develop contingency plans such as reducing production failures and adapting to changes in regulatory requirements

Control quality and protect IP

  • A key deciding factor in make vs buy decision is the availability of expertise and resources that can ensure the quality of the product/service
  • While a lack of expertise would drive manufacturers toward outsourcing, to protect IP and trade secrets insourcing is preferred

Focus on core business

  • Allocate more time, resources, and attention to core competencies by outsourcing non-core activities
  • Improve specialized knowledge and expertise by engaging in in-sourcing

Adapting to changes in market/regulatory requirements

  • Unforeseen changes in supply (such as raw material shortage due to black swan events) or regulatory requirements (like trade sanctions) can have severe cost implications
  • Accurate forecasting of such changes and adopting a make vs buy plan that can avert it is key to the success of a business

Why choose SpendEdge?

Featured Case Study

How SpendEdge Helped CPG Giant Streamline Contract Manufacturer Selection Process

Challenge: Faced with intense competition and the need to improve profit margins, our client turned to SpendEdge for assistance in overcoming their business challenges. One of the main strategies involved migrating cost-intensive operations to low-cost destinations.

Solution: Our team at SpendEdge assisted the client in streamlining their contract manufacturer selection process. Leveraging our expertise and market research methodology, we identified key contract manufacturers for the client’s ready-to-eat product line.

Result: The client successfully addressed their business challenges and achieved improved profit margins and reduced operating costs. All the while, also enhancing product quality and expanding manufacturing capabilities.

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Talk to One of Our Experts

The factors to consider during make vs buy decision are too many and any failure to accurately assess them can lead to cost overrun. Our expertise in insight generations can help you in making informed decisions.

Talk to Our Experts

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