Practical sheet | REF: FIC0676 V1

Make or Buy: an innovation lever for the company

Author: Alain CHAPDANIEL

Publication date: August 10, 2024 | Lire en français

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2. Redefining the purpose, objectives and constraints to transform the Make or Buy decision into a lever for innovation

Whether the request comes from production or R&D, or is generated by a meeting of the S&OP (Sales & Operations Planning) process, ask for a precise formulation of the purpose of the Make or Buy. Ask for a functional specification, not the description of a solution (for example, avoid having to work with only the technical specification and manufacturing range defined internally, which will restrict suppliers' scope for innovation).

Feel free to suggest changes to the Make or Buy object:

  • a whole component instead of a part of a component (subcontracting a part of a component often blocks the innovation that would have been possible for the whole component);

  • a function instead of a component (a functional specification naturally leads to this – here too, innovation at function...

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Redefining the purpose, objectives and constraints to transform the Make or Buy decision into a lever for innovation