Make or Buy

Make or Buy: give flexibility to the company’s industrial strategy

In an increasingly competitive international context, companies need to return their focus to strategic, high-added-value business lines, while benefiting from the improved performance of their suppliers. Make or buy is a manufacturing strategy decision that requires a clear and rational strategic and financial analysis of business lines.

Context and challenges

The make-or-buy decision is central to manufacturing, because it involves the in-depth analysis of a company’s business lines and its competitive advantage levers. It also facilitates rational decision-making on the company’s strategic positioning.

The level of outsourcing should take into account several criteria, which form the basis of the make-or-buy analysis:

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  • Strategic nature of the business
  • Competitive differential between an internal and an external solution
  • Ability to subcontract and engage with partners in certain areas of the value chain
  • Ability to control suppliers and integrate them into optimized flows of goods and information.

Beyond offering a simple theoretical analysis, the make-or-buy decision is a very useful way of comparing internal perception with external market reality; it provides essential perspective for management teams.

How can Argon Consulting help you?

  • Breaking down activities, based on primary differentiation criteria
  • Supporting the implementation (on an operational level)
  • Defining the business case (to make it possible to quantify the savings to expect from the process)

 

Case Studies

Identify the paths of improvement of industrial performance for an automotive equipment supplier