Make-or-Buy
Strategy
Make-or-Buy
Decision whether a product, component or service should be produced internally or sourced externally.
Examples
- 01A make-or-buy analysis shows that buying machined brackets from a supplier would cost EUR 2.10 each, while making them costs EUR 2.60.
- 02The management review checks the make-or-buy decision for risks such as losing know-how or depending on one supplier.
- 03The final make-or-buy decision keeps critical parts in-house and outsources simple parts, in line with the company's strategy.