A procurement approach to make vs. buy decisions at large conglomerates: a case written on the project; GEP

Abstract

This article aims to establish a structured decision-making approach that a firm can employ in a classical Make vs Buy scenario. A framework that can be utilized to prioritize the important product categories on the basis of both strategic and operational perspectives is illustrated. The article further aims to establish an implementation plan that can used in either scenario: A) To in-source (MAKE) a component or SKU currently procured. B) To procure (BUY) a component or SKU currently manufactured in-house.