Accessibility links

MENU

+44 (0)1707 897000

Should you buy in or manufacture materials?

Checklist for the pros and cons of in-house manufacturing.

  1. Resources
  2. Your business
  3. Developing your business
  4. Business processes

At Lovetts we can provide businesses in the Hatfield area with assistance and advice on a wide range of business issues. The following checklist might help when deciding whether to buy in materials or manufacture them yourself...

Sometimes, manufacturers have difficulty in deciding whether to manufacture materials for a finished product in-house or to buy them in from outside.

Although the principal consideration is financial, there are also other factors that need to be weighed.

Print

The following checklist will help you focus on the most important factors:

  YES NO
Does demand for the finished product seem relatively buoyant for the foreseeable future?    
Does demand for the finished product tend to fluctuate?    
Do you have unused plant and labour that could be utilised to manufacture the materials?    
Could you achieve greater economies of scale by manufacturing in-house than you could by buying in?    
Would manufacturing in-house give you greater control over such things as the quality of the materials and delivery time?    
Could you manufacture in-house without having to recruit extra labour?    

Every 'Yes' answer is a case for manufacturing in-house.

If you are in the Hatfield area and are looking for support and help from experienced accountants and business advisers, contact Lovetts.

The latest news

25 May

Energy price cap set to rise to £2,800 in October

The energy price cap is now expected to rise to around £2,800 in October, according to the UK's energy regulator.

24 May

Government 'refuses to rule out windfall tax' on oil and gas companies

A Treasury minister has stated that the government 'cannot rule out' a windfall tax on gas and oil companies in order to help with the cost-of-living crisis.

23 May

Ofgem proposals aim to avoid price shocks on energy bills

Household energy bills could change every three months under new plans proposed by the energy regulator Ofgem.