CMC has the tools and experience to help OEMs, who manufacture internally, address the complex make or buy issues related to cost benchmarking and outsource feasibility. CMC conducts a detailed study of direct, indirect and overhead support costs to understand current internal costs of manufacturing. We review supply-chain strategy to estimate raw material cost reduction potential if outsourced. New costs associated with outsourcing are quantified. We benchmark internal process quality statistics to comparable contract manufacturer metrics and estimate impact if outsourced. Other factors evaluated in our comprehensive make or buy analysis include NPI, sales forecasts, ECO, etc. Outsourcing pros and cons, with possible inhibitors to successful outsourcing are identified together with practical outsourcing risk mitigation strategies and tactics.

Make-or-buy cost comparisons show manufacturing cost (i.e., “value-add” or “transformation cost”) and material cost differences by commodity group for representative client products. Geographic locations included e.g., USA, Mexico, Brazil, China, etc. are those most likely to meet client-specific cost and service requirements. CMC maintains a comprehensive, highly detailed global cost model to support outsourcing feasibility and manufacturing cost benchmarking assignments.