The Make-Versus-Buy Decision: Top Six Considerations
Today’s competitive manufacturing landscape means OEMs face constant pressure to increase output, spur innovation and keep pace with rapidly evolving technologies, all while reducing costs and minimizing waste. This often leads companies to evaluate whether it makes better business sense to keep all production in-house or outsource manufacturing efforts.
However, many OEMs fall into the trap of making a make-versus-buy decision based on incomplete information, or decide to keep production in-house out of precedent or purely because the capabilities already exist internally.
Many factors impact the make-versus-buy decision, but the most critical considerations relate to your overall business strategy and hard costs. For instance, how much of your capital is tied up in projects that are not part of your core competencies?
Outsourcing production can lessen operational costs and free up equipment, labor and facility space that could be spent on core capabilities. By refocusing resources in areas where you see the greatest return on investment, you’re making more room for product innovation.
At Genesis, we’ve helped OEMs in medical, military and other industries gain a competitive edge by providing manufacturing solutions that increase efficiency and flexibility and decrease time to market. Based on nearly three decades of serving the contract thermoplastics welding needs of our customers, we have identified the top six considerations that will help get you started on a conducting a thorough make-versus-buy analysis. Click here to download our free solution brief.
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After years of making the disposable surgical instrument covers in-house, this medical device OEM began experiencing growth in demand and could no longer keep up with production. The company struggled to hire enough qualified staff to support production and faced high overhead costs. Read more on how this company was able to continue growing without raising costs by partnering with Genesis Plastics Welding.
Contract Manufacturing: A Roadmap for OEMs will help you plot a course for long-term success, establish clear selection criteria that fit your company’s needs and offers a framework for comparing contract manufacturers.