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Home > Make or Buy Analysis

Make or buy analysis is a decision making process which requires an in depth analysis of the pros and cons in order to determine the strategic benefits to be gained from, retaining a product/service in-house or alternatively sourcing from a supplier or service provider.

The make or buy decision is one of the most critical supply chain, strategic decisions. The decision is important for a number of reasons as it can determine and define an organisation's competencies. It also affects the level of investment a business should make internally as well as with suppliers.

Aspects of business reviewed in make or buy analysis

Improving service quality
Gaining/improving expertise that is difficult to acquire or retain
Cost reduction
Using other organisations investment capability
Encouraging management to focus on core activities
Exploiting economies of scale
Increasing profitability
Lack of equipment and trained personnel
Non-core products and services

How S4S can help provide the answer

The make or buy decision can be crucial to a businesses supplier/client perception, therefore it is imperative that ownership is not released or retained for the wrong reasons, your clients don't want surprises or variability, they want consistency! The make or buy analysis that S4S undertakes ensures that all relevant aspects of the business are reviewed and all stakeholders considered.

S4S will manage the whole process from start to finish guiding your management team through every possible what if scenario, help you take advantage of opportunities and requirements to change. We will realistically identify what can be achieved in-house with all of the risks of change highlighted and scrutinised.

At S4S Limited, we provide critical make or buy analysis that helps you define the reasons and measures for change, gives you accurate predictions of the outcome of your choice from a far more robust base line of information and allows you the opportunity to make a sustainable decision.

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