Make or buy: Three pillars of sound decision making (2024)

Executive summary

The decision to make or buy extends beyond manufacturing, encompassing human resources, information technology, maintenance, and other fundamental business functions. Chief procurement officers have a key role to play in helping business units make these decisions given the skills and objective perspective their teams bring to the effort. This report explores the dynamics of make-or-buy decisions and presents a framework to help companies make the right decisions. The framework is built on three key pillars — business strategy, risks, and economic factors.