The ability to manage Make or Buy decisions is a powerful lever to reduce cost and obtain flexibility and agility in the supply chain. Over the years many companies have tend to execute Make or Buy based on non-coordinated decentralized decision ending op in a manufacturing outlook with unclear production processes and planning problems in the order execution.
Complexity in the supply chain, lack of product categories and limited production process mapping combined with no clear strategic direction are often elements that leads to wrong Make or Buy decisions.
To develop a clear strategic direction for Make or Buy, a production assessment of hours, volumes, processes should be made including setting up valid pre- and post calculations of the products or categories,
Furthermore, a market knowledge should be obtained including a supplier search and selection process in order to determine suitable sources in order to decide about the Make or Buy direction.Elements like product knowledge, product ownership and risk should also be considered when setting the direction to keep as-is, insource or outsource.
Scottnordic has the skills and practical experience to drive cross-functional Make or Buy projects from analysis to strategic direction and final implementation. We also ensure a full market screening of potential suppliers and effective search and selection processes in required regions.