Make or Buy

At a time when efficiency and flexibility are in demand, more and more companies are discovering the benefits of a well thought-out logistics sourcing strategy. The decision to take on logistics tasks yourself or to outsource them to the right competent logistics service provider can have a significant impact on logistics costs and the necessary investments in logistics. Many companies consider buying in logistics services and integrating a logistics service provider through outsourcing. Others, for drastic reasons, favor keeping logistics under their own responsibility in the future. The third group is considering outsourcing logistics to a service provider in order to achieve cost savings and relieve themselves of their previous logistics tasks. It is not possible to derive a clear trend in make-or-buy and the in- or out-sourcing of logistics; rather, it is usually very individual decision-making criteria that lead to a suitable solution for the respective company or the specific company location.

As supply chain management consultants, we know the challenges and advantages of the various logistics sourcing strategies. Let us shed light together on the opportunities and challenges for your company and find out how you can set up your logistics in a future-oriented and cost-optimized way.

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The choice between in-sourcing or out-sourcing logistics requires careful consideration of various criteria to ensure the long-term success of your company. Examples of decision criteria are:

• Logistics as a core competence for achieving high quality at low cost
• Dealing with existing logistics personnel in the event of out-sourcing; keyword: necessary transfer of employees
• Availability of adequate logistics service providers in the event of outsourcing in terms of distance/location, performance capability and suitable logistics real estate
• Insourcing into an existing logistics system or the need to establish a new logistics system
• Opportunity to automate logistics using modern warehouse technology when building a new warehouse as part of insourcing from a logistics service provider to an in-house logistics center / warehouse
• Make or buy can affect both the operating concept or personnel deployment and the ownership structure of a warehouse or logistics property

A well-founded make or buy decision in logistics is based on various decision-making factors and forms the basis for a sustainable, optimal solution. For example, it is a central question whether logistics and its processes are regarded as a core competence for achieving high quality and cost-effectiveness. Furthermore, the willingness and ability to invest in logistics real estate, logistics technology and your own logistics operations is of great importance.

Take advantage of our expertise to develop the right logistics strategy for your company and deploy your resources efficiently. Find out how a strategic make-or-buy decision can have a lasting impact on your logistics costs and increase your competitiveness.

• Carrying out the process recording and data analysis
• Estimation of potential (cost savings and optimizations)
• Definition of quality requirements
• Carrying out a risk assessment
• Strategy evaluation and development of a strategic decision template for make or buy
• Carrying out a network analysis in the event of sensible adjustments to supply chain structures
• Planning the warehouse / logistics center in the event of insourcing from logistics service providers
• Supervision of the entire insourcing process
• Preparation and execution of the tender in the event of outsourcing
• Supervision of outsourcing and coaching of the logistics service provider in the start-up process

1. Carrying out an actual and potential analysis based on recorded processes and master and movement data
2. Identification of optimization potentials and fields of action as well as logistical requirements
3. Definition of the possible and sensible outsourcing strategy
4. Determination of the optimal location and transportation concepts as part of a network study
5. Derivation of logistics requirements and development of an outsourcing concept with corresponding tender content
6. Preparation and execution of tenders
7. Selection support and award recommendation
8. Realization support and start-up support