Project Overview
A leading renewable energy equipment manufacturer wanted to evaluate the long term strategic positioning of selected manufacturing operations as part of a broader operational optimization initiative. Our client required a fact based assessment of operational segment’s competitiveness, utilization and supplier landscape maturity.
VARKA partnered with leadership, sourcing, operations, engineering, and finance teams to develop a strategic MAKE vs BUY framework covering cost modelling, supplier ecosystem analysis, operational utilization, scenario planning, and business case evaluation.
The Challenge
Unoptimized value chain and limited visibility into operations’ competitiveness
- Value Chain Optimization: Lack of a clearly defined manufacturing and sourcing strategy to determine the optimal balance between operational complexity, speed to market, and cost competitiveness.
- Cost Transparency: Limited visibility into the end to end cost of operations for targeted segment impacting fact driven decision making.
- Supplier Visibility: Lack of structured supplier benchmarking and market intelligence to assess outsourcing feasibility and strategic sourcing opportunities.
Our Approach
Developed a strategic MAKE vs BUY assessment framework by combining operational analytics, supplier market intelligence, utilization modelling, and scenario based financial analysis to evaluate long term manufacturing footprint and sourcing strategy options.
Scenario Development
Designed make vs buy operating scenarios to identify the optimal manufacturing and sourcing configuration balancing cost competitiveness, scalability, and speed to market across product segments.
Cost Discovery
Developed detailed financial models by analyzing operational data of 1000+ manufactured items to evaluate manufacturing cost structures across different scenarios.
Make vs Buy Strategy
Conducted supplier ecosystem analysis across multiple regions and benchmarked sourcing economics to current operations to evaluate most feasible strategy.
VARKA Support
Comprehensive manufacturing footprint strategy support
Strategic Manufacturing Assessment
- Developed make vs buy scenarios
- Assessed end to end manufacturing costs
Supplier Ecosystem & Sourcing Analysis
- Identified and benchmarked qualified suppliers
- Assessed supplier capability and sourcing fit
Create Make vs Buy Strategy
- Evaluated manufacturing competitiveness
- Developed supplier engagement roadmap
Outcomes & Impact
Measurable results and lasting improvements
Established a scalable strategic decision making framework integrating operational analytics, supplier intelligence, and scenario based business case modelling to support long term manufacturing footprint and sourcing strategy decisions.
Operational Savings
Supplier Engagement Roadmap
Optimized Value Chain Positioning
- Optimized value chain positioning:
Enabled leadership to identify the most competitive manufacturing and sourcing configuration. - Cost Savings:
Identified cost saving potential ranging upto 12%, including scenarios with investment payback within one year. - Supplier Engagement Roadmap:
Created a supplier engagement strategy and discussion toolkit identifying qualified suppliers, outsourcing opportunities, and category specific manufacturing requirements based on detailed operational analysis of 1,000+ manufactured items.
“Jane Navarro”
“IMPACTFUL”
The roadmap was extremely impactful across organization, especially the Management and Board. – Chief Technology Officer, European major
“Jane Navarro”
“VERY PLEASED”
We are very pleased with the deep insights you have across the energy transition sectors. Thanks for the great work!
– VP Sales, Supply Chain Major
“David Cohen”
“REAL SAVINGS”
We were able to achieve real savings from the analysis you conducted for the different categories. Cheers!
-Chief Procurement Officer, Global Supply Chain Supplier
“Jane Navarro”
“HIGHLY VALUED”
Thank you for the great work on the go-to-market task. It is highly valued within our organization. – Head Strategy, European Major
“David Cohen”
“Extremely Impressed”
We are extremely impressed by the quality of work you deliver. You really understand the key pain points and can provide a perspective which most others miss.
-Head of Strategy, Global major