Make vs. Buy—Don’t Let “Great Deals” Become Costly Mistakes

Hey Reader,

In fresh food operations, the make versus buy decision is rarely black and white. The commodity space offers a wide range of product specs, each designed to meet a different customer need. But what looks like a win for them may not translate into bottom-line results for retailers or further processors.

Here’s the reality:A commodity spec might look attractive at the point of purchase, but unless you’ve validated the true cost to transform it into a retail-ready product, you’re taking a risk.

Transformation costs, labor, and yield loss can quickly erode any savings and what seemed like a “great deal” can turn into a margin drain.

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Best Practices for Smarter Decisions

Know Your True Cost to Produce

• Map the full transformation process for every spec you’re considering.
• Account for labor, yield, equipment, overhead, & especially added time - not just raw material price.

Validate Labor and Yield Assumptions

• Don’t rely on historical data when changing specs or suppliers.
• Test and measure the impact on labor and yield before making a switch.

Equip Your Purchasing Team to Ask the Right Questions

• Push beyond price: What specs are available? What’s included? What’s the impact on your process?
• Build a clear understanding of options before committing.

Focus on Total Cost, Not Just Purchase Price

• Lowest price doesn’t always mean lowest cost.
• Factor in transformation, waste, and throughput to see the real impact.

Challenge Whether Transformation is Value-Add

• Is converting commodity specs in-house truly adding value for your customers, or is it pulling focus from your core strengths?
• Sometimes, paying more for a ready-to-use spec frees up your team to deliver where it matters most.

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Bottom Line:

Smart purchasing is about understanding the total cost to deliver a finished product & not just chasing the lowest price.

Before jumping on a commodity deal, make sure you know exactly what it’ll take to turn it into shelf-ready value.

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​Judson Armentrout​
FreshOps | Practical Insights for Fresh Food Operations

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