Make Buy May 2026

In-house production eliminates the risk of a supplier failing to deliver on time. When to "Buy"

Direct supervision allows for tighter quality standards that external vendors might not meet. make buy

Assessing risks like supplier reliability, potential for intellectual property leakage , and long-term strategic value. In-house production eliminates the risk of a supplier

Adding up all internal production costs (materials, labor, overhead) vs. the external purchase price and procurement costs. potential for intellectual property leakage

Buying (outsourcing) is typically preferred when a company needs to remain lean or lacks specific technical expertise.

If you have idle machinery or staff, "making" helps cover fixed overhead costs.

To reach a decision, managers often perform a , which includes: