Buy: Make

Some firms choose to both make and buy the same item to maintain internal expertise while benefiting from market competition.

Outsourcing non-essential components lets your team focus on the high-value activities that drive your brand. The Analysis Process make buy

Buying (outsourcing) is typically preferred when a company needs to remain lean or lacks specific technical expertise. Some firms choose to both make and buy

Buying allows you to scale up or down quickly without being tied to expensive physical assets or long-term labor contracts. "making" helps cover fixed overhead costs.

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

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

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