Make vs Buy

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 and cost reduction strategies such as reducing production failures, multiple sourcing and adapting to changes in regulatory requirement to limit their risk exposure

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 internal 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?

Maximize profit

Maximizing profit is one of the key priorities for businesses. We analyze all aspects related to production cost, overhead costs, storage costs, inventory handling costs, lead time, supply disruption, and quality problems, among others, in terms of insourcing and outsourcing to offer a comprehensive approach that helps companies determine the most cost-effective manufacturing method

Finding alternatives

Our experts work relentlessly to check certifications and analyze business processes to identify cost-draining elements, research and development costs, while establishing the pros and cons of make vs buy strategy and the competitive advantage it may offer. To improve feasibility. we offer alternatives for expensive row materials, sustainable substitutes, and suppliers with lower profit margins, such suggestions aid businesses to improve their ESG and avoid supply chain disruption

Get the latest updates

Make vs buy is not a one-time decision for businesses. To ensure profitability, businesses need to regularly assess their make vs buy decision based on changes in demand and regulatory requirements. We offer the latest updates on commodity pricing billing rates, and changes in taxes and regulatory requirements

Play to your strength

We are experts in insight generation. We often compare the strength of our clients and their partners with potential external suppliers and perform a detailed cost-benefit analysis before offering make vs buy advice. Our insights have helped businesses to play based on their strengths and outsource aspects that they lack expertise in

Featured Case Study

How We Helped a Leading Metal Manufacturer Optimize Procurement and Achieve Significant Cost Savings

Challenge: The client faced escalating costs due to inefficient procurement processes, poor supplier management, and a lack of spend visibility.

Solution: We conducted a comprehensive peer analysis to identify competitors’ spending patterns and sourcing strategies, providing actionable insights for better contract negotiations.

Result: This approach resulted in annual savings of $15 million and enhanced the client’s procurement efficiency and supplier management strategies.

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