Should you buy in or manufacture materials?

At Chalmers HB we can provide businesses 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 looking for support and help from experienced accountants and business advisers, contact Chalmers HB.

Register for our Monthly Newsletter -

Why not register to receive our Monthly Newswire?

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today ยป

Tel: 01749 685000

Email:

Chalmers HB
20 Chamberlain Street
Wells
Somerset
BA5 2PF


Contact us | Credits | Accessibility | Disclaimer | Help | Site map |

© 2018 Chalmers HB. All rights reserved.
We use cookies on this website, you can find more information about cookies here.

Chalmers HB Limited, Registered in England, Registered number 4233537, Registered Office: 20 Chamberlain Street Wells Somerset BA5 2PF. Chalmers HB Audit Limited, Registered in England, Registered number 9739736, Registered Office: 20 Chamberlain Street, Wells, Somerset BA5 2PF.