Make-or-Buy: A practical guide to industrial sourcing decisions

Make-or-buy – the choice between making in-house or buying in from an external supplier – is a key decision area within manufacturing strategy and has an impact on many aspects of a business. Make-or-buy decisions are often made reactively and purely on the basis of cost. This reactive ‘mode’ does not allow people to review other relevant factors. Decision making based purely on the basis of cost can be risky. By using a structured process to review all relevant factors, in an objective manner, the likelihood of making expensive mistakes is reduced.


Based on extensive research at the Institute for Manufacturing, this book provides:

  • a tested, practical process to address make-or-buy decisions in a holistic and consistent manner
  • improved understanding of make-or-buy decisions and their implications
  • step by step guidance through the make-or-buy decision making process
  • examples, illustrative case studies and tips to help you
  • downloadable software to automatically analyse the data collected

What users say

I consider the process to be excellent and would recommend it is used by the company on all future make-or-buy decisions. Quality manager, domestic appliance manufacturer


A concise way of including a large amount of information, experience and discussion. Manufacturing manager, industrial printing company


It is a process that helps the team ensure that all aspects are investigated. General manager, compressor manufacturer


The process highlighted ‘hidden’ costs. Manufacturing manager, scientific instruments manufacturer


We have learned that a multifunctional team is required for make-or-buy decisions. Purchasing manager, compressor manufacturer


A user-friendly process which has quickly become familiar to all people involved. Supply chain manager, industrial printing company



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ISBN 1-902546-07-5