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MAKE V BUY SUPPLY CHAIN STRATEGY

Client Background

The client is a multi-national organisation operating within the automotive sector, entering the early stages of a new product platform cycle. As part of this cycle, the client was required to make a long-term strategic investment decision relating to one of the most critical systems which played a defining role in vehicle performance, weight and overall driving dynamics, and was therefore considered a cornerstone of the product’s value proposition.

The client engaged LES to support a strategic “make-vs-buy” decision for this system, assessing whether it should be manufactured internally as a core capability or sourced from an external supplier. Given the scale of investment, long platform lifecycle and implications for future competitiveness, the client required an objective, data-driven assessment covering technical feasibility, manufacturing strategy, financial viability and organisational impact

Key Activities Undertaken by LES

Strategic Make vs Buy Assessment: LES evaluated internal manufacturing versus external supply scenarios, assessing the implications of each option on cost, capability, risk and long-term strategic control.

Manufacturing Capability & Technology Assessment: LES analysed potential production concepts, including process flows, technology selection, automation opportunities and equipment requirements needed to achieve target production volumes and costs.

Capital Investment & Financial Modelling: Detailed financial models were developed to assess capital expenditure, operating costs, return on investment and cash flow over the platform lifecycle.

Cost Reduction & De-Risking Analysis: LES identified technology development and automation opportunities to reduce labour intensity and production cost, supporting the validation of key business case assumptions.

Supply Chain & External Benchmarking: External supplier quotations and industry benchmarks were assessed to provide a direct comparison against internal manufacturing scenarios.

Government & Incentive Engagement Support: LES supported discussions with local and national stakeholders to evaluate potential incentive mechanisms, including grants, training support and infrastructure considerations.

Organisational & Operational Design: The study assessed organisational structure, workforce requirements and operational readiness, ensuring alignment between engineering, manufacturing and business functions.

Stakeholder & Decision Support: LES supported stakeholder alignment by considering both quantitative and qualitative factors influencing decision-making, ensuring risks, opportunities and trade-offs were clearly articulated.

Key Takeaways

This project demonstrates LES’s capability to support complex, high-value strategic decisions at the intersection of technology, manufacturing and investment planning. By combining technical expertise, financial analysis, manufacturing insight and stakeholder awareness, LES provided the client with a clear, evidence-based foundation for decision-making. The work highlights LES’s ability to deliver integrated, end-to-end advisory support that enables clients to make informed, long-term capability and investment decisions aligned with their product and business strategy.

Approach

The project followed a structured, phased approach designed to support confident decision-making. LES combined quantitative analysis with qualitative insight, integrating technical, financial, operational and organisational perspectives into a single coherent framework. Early stages focused on establishing a clear baseline and identifying key uncertainties, which were then addressed through targeted analysis and validation activities. Throughout the project, close engagement with stakeholders ensured alignment, transparency and practicality, allowing findings to be translated into clear, actionable recommendations rather than abstract conclusions.

SERVICE CATEGORIES:

Client Background

The client is a multi-national organisation operating within the automotive sector, entering the early stages of a new product platform cycle. As part of this cycle, the client was required to make a long-term strategic investment decision relating to one of the most critical systems which played a defining role in vehicle performance, weight and overall driving dynamics, and was therefore considered a cornerstone of the product’s value proposition.

The client engaged LES to support a strategic “make-vs-buy” decision for this system, assessing whether it should be manufactured internally as a core capability or sourced from an external supplier. Given the scale of investment, long platform lifecycle and implications for future competitiveness, the client required an objective, data-driven assessment covering technical feasibility, manufacturing strategy, financial viability and organisational impact

Key Activities Undertaken by LES

Strategic Make vs Buy Assessment: LES evaluated internal manufacturing versus external supply scenarios, assessing the implications of each option on cost, capability, risk and long-term strategic control.

Manufacturing Capability & Technology Assessment: LES analysed potential production concepts, including process flows, technology selection, automation opportunities and equipment requirements needed to achieve target production volumes and costs.

Capital Investment & Financial Modelling: Detailed financial models were developed to assess capital expenditure, operating costs, return on investment and cash flow over the platform lifecycle.

Cost Reduction & De-Risking Analysis: LES identified technology development and automation opportunities to reduce labour intensity and production cost, supporting the validation of key business case assumptions.

Supply Chain & External Benchmarking: External supplier quotations and industry benchmarks were assessed to provide a direct comparison against internal manufacturing scenarios.

Government & Incentive Engagement Support: LES supported discussions with local and national stakeholders to evaluate potential incentive mechanisms, including grants, training support and infrastructure considerations.

Organisational & Operational Design: The study assessed organisational structure, workforce requirements and operational readiness, ensuring alignment between engineering, manufacturing and business functions.

Stakeholder & Decision Support: LES supported stakeholder alignment by considering both quantitative and qualitative factors influencing decision-making, ensuring risks, opportunities and trade-offs were clearly articulated.

Key Takeaways

This project demonstrates LES’s capability to support complex, high-value strategic decisions at the intersection of technology, manufacturing and investment planning. By combining technical expertise, financial analysis, manufacturing insight and stakeholder awareness, LES provided the client with a clear, evidence-based foundation for decision-making. The work highlights LES’s ability to deliver integrated, end-to-end advisory support that enables clients to make informed, long-term capability and investment decisions aligned with their product and business strategy.

Approach

The project followed a structured, phased approach designed to support confident decision-making. LES combined quantitative analysis with qualitative insight, integrating technical, financial, operational and organisational perspectives into a single coherent framework. Early stages focused on establishing a clear baseline and identifying key uncertainties, which were then addressed through targeted analysis and validation activities. Throughout the project, close engagement with stakeholders ensured alignment, transparency and practicality, allowing findings to be translated into clear, actionable recommendations rather than abstract conclusions.

SERVICE CATEGORIES:

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