Improve Build or Buy Decisions to Reduce Cost

With margins dwindling, the CFO of a large industrial manufacturing company decided to reevaluate the company’s build or buy decisions. With the help of Gartner, she built a research and data-driven cost analysis approach that enabled analytics teams to make smarter build or buy recommendations, which can drive gross margin expansion by over 15%.

Mission-critical priority

With margins dwindling, the CFO decided to reevaluate the company’s build or buy decisions. What build or buy considerations should she make to create economies of scale within the various product lines?

How Gartner helped

A Gartner advisor briefed the CFO on build or buy economics research and insights, from which she redesigned the cost analysis approach. The redesign revealed the slow-moving parts of the company’s manufacturing process. Furthermore, the advisor guided the CFO in developing a process through which supply chain and operations analytics teams could apply the redesigned cost analysis approach to build or buy decision making.

Mission accomplished

Via her partnership with Gartner, the CFO built a research and data-driven cost analysis approach that improved decision making and finance capabilities at the company in two key ways: 

  • Enabled senior management to align financial and operational analytics
  • Enabled analytics teams to make smarter build or buy recommendations, which can drive gross margin expansion by over 15%

Industry:
Industrial manufacturing

Revenue:
$10 billion to $50 billion

Employees:
50,000 to 100,000

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