Make - Or Buy

Assess if internal facilities have the capacity to produce the required volume. Buying is often better if your current operations lack capacity, while making allows for higher flexibility in design and schedule changes.

Focus on making items that are critical to your product’s success or require proprietary technology (IP protection). Outsource non-core or commoditized components to free up resources. make or buy

Compare the total cost of in-house production (direct materials, labor, overhead, equipment) with the cost of purchasing (purchase price, shipping, supplier management). Assess if internal facilities have the capacity to

If the item requires extremely high standards that a supplier cannot meet, keeping production in-house provides better control. keeping production in-house provides better control.