Global Sourcing Tools > Tools and Services > Make-or-Buy Comparison with Global Sourcing

Make or Buy ?

  • How to consider early on, that partial functions (i.e. application tests) may need to remain in-house ?
  • How to consider early on, that the predetermined general contract manufacturer receives the same favorable terms from the external suppliers ?
  • How to consider other initial expenses, such as for relocation of warehouse facilities ?
In these cases, our Make-or-Buy Comparator MABCO2010 will help you decisively !
  1. It structures all costs involved
  2. It takes into consideration the special conditions of restucturing
  3. It brings transparency and helps tu justify your decisions to your management

This software tool is currently under development. Relevant information will be announced under "News and Downloads"

Mechanical processing of Precision Parts Transformer production

Typical example for a Make-or-Buy Analysis or an intended relocation of production:

  • Mechanical processing of precision parts
Cost structure for the Make-or-Buy Decision

A decision for relocation or external production is a managerial decision, based on cost criteria. It will not be sufficient to only make a cost calculation.

There are risk factors, which need to be considered, i.e.:
  • Socially acceptable personnel reductions
  • Underestimation of relocation expenses and possibly loss of know-how
  • Start-up problems caused by incompatible tooling or software, resulting in qualtity and consequential error costs