Make - Or Buy

Compare the total cost of in-house production (direct materials, labor, overhead, equipment) with the cost of purchasing (purchase price, shipping, supplier management).

Focus on making items that are critical to your product’s success or require proprietary technology (IP protection). Outsource non-core or commoditized components to free up resources. make or buy

If the item requires extremely high standards that a supplier cannot meet, keeping production in-house provides better control. Compare the total cost of in-house production (direct