Situation 08 · Make-or-Buy
The unit cost is the only number you can actually compare.
Which functions have to stay in-house, and which could a partner, a piece of software or a model do better?
A decision is due on which services stay in house. In the tender this is called Make-or-Buy, sourcing strategy or vertical integration.
The problem underneath is that the unit cost is the only comparable number — and the one that says least about what the transfer creates in management overhead, interfaces and lost knowledge.
The comparison stays right. It only needs the activities on both sides and the structure that is left after the transfer — otherwise you are comparing a price with a price.
What gets handed over — and what dependency comes with it?
Strategic relevance before unit cost. Dependency risks belong in the same calculation. And the decision still has to hold in three years.