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Make or Buy

Fuente: Procurement Glossary
Autor: Paul Rogers
Instituto: CIPS - UK

Cortesía de


The make or buy decision is between making a good or providing a service in-house, or buying the good or contracting for the service from external suppliers.  It precedes the procurement process and is a strategic decision that defines the boundary of the organisation.


When organisations understand their ‘core competence’ and know in which activities they have a relative competitive advantage over competitors, it makes strategic sense to undertake those activities internally.  For example, in running an airline, it is possible to ‘wet lease’ the aircraft and crew, buy-in the ground-handling and check-in services and contract out the sales and customer interface.  This is possible because these are mature supply markets, with competition, which might enable the virtual airline to obtain these services at a lower cost than if it sought to engage in these activities with its own resources. In this example, the core competence of the airline would be in planning a network, i.e. deciding where to fly to and from, obtaining the slots from the relevant airports, negotiating with governments, buying aviation fuel, and developing and promoting their brand.


In practice not all make or buy decisions or ‘do or contract’ decisions involve systematic cost comparisons, benchmarking external and internal costs, and the shape of some organisations owes as much to the legacy of historical choices as to current strategic opportunities.  See also Outsourcing and Transaction Cost Economics.










Ofertas de Trabajo
Responsable de Planificación y Aprovisionamiento - Empresa líder FMCG
     Valencia  -  PERM  -  Michael Page

Logistics Monitoring Executive
     Barcelona  -  PERM  -  Michael Page

Operations Manager- Sector Industrial (Automoción)
     Madrid  -  PERM  -  Michael Page

Director de compras - Energías renovables
     Madrid  -  PERM  -  Michael Page

Responsable de compras sector pescado.
     Vigo  -  PERM  -  Michael Page

Head of logistics- Multinational Company
     Madrid  -  PERM  -  Michael Page

Inventory Purchasing Director - Important company of Consumer Goods
     Barcelona  -  PERM  -  Michael Page

Ingeniero-a de procesos logísticos-Importante multinacional sector de la industria de automoción
     Madrid  -  PERM  -  Michael Page

Responsable de plataforma logística - Empresa distribución industrial
     Toledo  -  PERM  -  Michael Page

Demand Planner-Multinational FMCG company
     Madrid  -  PERM  -  Michael Page

Director de Compras Indirectas
     Murcia  -  PERM  -  Michael Page

Ingeniero Senior Logística con Alemán - Importante empresa Logística
     Barcelona  -  PERM  -  Michael Page

Planificador de la Producción
     Valencia  -  PERM  -  Michael Page

Purchasing & Logistic Director
     Sevilla  -  PERM  -  Michael Page

Category Buyer Packaging - Important company in the industrial sector
     Tarragona  -  PERM  -  Michael Page


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