Internal manufacturing of a product versus procurement from external supplier sources is a difficult decision requiring careful and thorough assessment of multiple elements. The assessment includes organization’s core competencies, business strategy, manufacturing strategy, internal capacity, resource limitations, demand fluctuations, time-to-market, and improved returns, among others. Top management has to negotiate the trade-offs between the make or buy alternatives.

Procurement from external sources liberates the organization's resources, cuts investment demands, increases flexibility and return on capital. However, there are associated quality and supply risks involved with this strategy. In contrast, "in-house manufacturing" employs internal capacity, absorb fixed costs, and safeguard intellectual property. Nevertheless, the "make" approach entails unwarranted complexities, and avert resources and focus away from more important strategic priorities.

This presentation provides a comprehensive framework to help organizational leadership answer the make-or-buy question by evaluating their manufacturing network and strategies, developing an assessment criteria, detailed implementation process, and tactics for executing the framework.

The slide deck also includes some slide templates for you to use in your own business presentations.

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