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

22 May

IPSE urges government to extend self-employed support scheme

The government is being urged to extend its coronavirus (COVID-19) Self-employment Income Support Scheme (SEISS) for as long as self-employed individuals require it.

22 May

UK sets out post-Brexit tariff regime

The UK government has published its plans for a new import tariff regime following the end of the Brexit transition period.

21 May

Future Fund launches to give start-ups coronavirus support

The government has launched its Future Fund package, which aims to support start-up businesses not eligible for other coronavirus (COVID-19) rescue measures.