Make or buy analysis and quoting tools.
A make or buy decision is only as good as the cost numbers behind it. We build the part-level analysis and the quoting tools that give Estimating the same supply chain inputs every time.
- 72h to 24hinternal quoting lead time
- $19Mannual supplier spend managed
- 900+SKUs across 40+ active suppliers
From our founder’s operating roles. Not client results.
Where make or buy analysis goes wrong.
Make or buy calls and quotes often rest on numbers that do not match. Four gaps cause most of it.
Overhead treated loosely
Internal cost uses direct labor only, or full absorbed overhead, without asking which costs actually change if the part moves.
Capacity ignored
A part looks cheaper to make until it takes machine hours from higher-value work or forces overtime.
Stale supplier inputs
Estimators use old prices, old lead times, and guessed material costs, so each quote carries different assumptions.
One-time decisions
Make or buy is decided once and never reviewed, even after volumes, rates, and supplier prices change.
What goes into a make or buy analysis.
Each part is costed both ways on the same basis, so the decision rests on the cost that actually changes.
- Make cost
- Material, setup, run time, labor rate, and the overhead that varies with volume
- Buy cost
- Quoted price, freight, duties, inspection, and supplier tooling
- Capacity
- Machine and labor hours available, and what the part displaces
- Lead time
- Internal cycle time against supplier lead time plus transit
- Quality risk
- Process capability, special processes, and first article requirements
- Strategic fit
- Core processes and know-how you want to keep in house
- Quote inputs
- Standard material prices, supplier lead times, and outside process costs, owned by Purchasing
- ERP link
- Inputs drawn from your ERP item, routing, and cost data
How it works.
Map today
Trace how make or buy calls and quotes are built today, and where each supply chain number comes from.
You receive: Current-state map of cost inputs
Cost build-up
Build make and buy cost for each part on the same basis, with capacity and lead time alongside.
You receive: Make or buy analysis by part
Build the tools
Standardize supply chain inputs in a quoting and estimating tool tied to your ERP data.
You receive: Quoting tool with standard inputs
Hand over
Train Estimating and Purchasing on the tool and set a review cycle for inputs and make or buy calls, as part of your supply chain organization design.
You receive: Owners, procedures, and a review cycle
From operating experience.
- Internal quoting lead time cut from 72 hours to 24 hours with make/buy, quoting, and estimating tools, improving win rates.
- Estimating, purchasing, and inventory directed across three organizations.
Our founder delivered these results while running supply chain organizations between 2017 and 2026. They are operator results, not client results. See all results
What you receive.
- Make or buy analysis by part, with both sides costed the same way
- Capacity and lead time view for each decision
- Quoting and estimating tool with standard supply chain inputs
- Input ownership rules between Purchasing and Estimating
- Procedure for reviewing make or buy calls when volume or rates change
- Sourcing plan for parts moving to buy, through strategic sourcing
Standards, contracts, and systems our founder has worked within
- Make/buy cost build-up
- Should-cost
- Total cost of ownership
- Capacity analysis
- Infor LN
- Shoptech E2
- Fishbowl
Make or buy analysis questions.
Which overhead belongs in a make or buy analysis?
Only the overhead that changes with the decision. Fixed costs that stay whether or not you make the part should not count against making it in the short term. Over a longer horizon, where capacity or headcount would change, more of the cost becomes relevant.
What goes into a make or buy decision besides cost?
Capacity, lead time, quality risk, control of technical data, and whether the process is core to your business. We put the numbers side by side for each part so the tradeoffs are clear.
Does the quoting tool replace our ERP?
No. It works alongside the ERP, drawing item, routing, and cost data from it and keeping supply chain inputs current.
Who owns the supply chain inputs in the quoting tool?
Purchasing owns material prices, supplier lead times, and outside process costs. Estimating and Sales use them. Clear ownership is what keeps quotes consistent.
How often should make or buy decisions be reviewed?
Whenever volume, labor rates, capacity, or supplier pricing change enough to move the answer, and at least once a year as part of the annual plan.
Start with a 30‑minute conversation.
Describe what you buy and where the problem is. We reply to every message directly.