Make versus Buy introduction

Case Study: Supply Chain Analytics in Power BI

Nick Switzer

Analytics Lead

Case study and prerequisites

Apply Power BI skills
Combine previously learned concepts
Solve an example problem
Advanced Case Study

Prerequisite courses

Intermediate DAX in Power BI
Data Modeling in Power BI
Data Visualization in Power BI

What is a Supply Chain?

A network of individuals and companies who are involved in creating a product and delivering it to the consumer.

The Supply Chain:

Begins with the producers of raw material
Ends with the product being delivered to the consumer.

A one line flowchart representing supply chain beginning with a raw material warehouse which points to a factory which points to a goods warehouse which points to a truck which points to residential home

¹ https://www.investopedia.com/terms/s/supplychain.asp

What is Make versus Buy?

A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.

A factory icondelivery box icon

¹ https://www.investopedia.com/terms/s/supplychain.asp

Make versus Buy in real life

Make: Prepare a pizza in your own oven
Buy: Order pizza at your local restaurant

A pizza with mozzarella, red sauce and basil leaves

Factors in the Make versus Buy analysis

A triangle diagram with quality, time and cost as the points with value in the center.jpg

Quality: Who makes a better pizza?
- Pizza restaurant might have tastier pizza
Time: Which option takes longer?
- Making a pizza takes time
- Ordering a pizza takes minutes
Cost: Which option costs the most?
- Might save money at home
- Restaurant might buy ingredients in bulk

Skills can be applied to more than just cost.

The problem

You are the supply chain analyst!
Quotes data table
Internal Manufacturing data table

Quote: A document that a seller provides to a buyer to offer goods or services at a stated price, under specified conditions.

A woman presenting a dashboard on a screen to a table of coworkers

¹ https://www.sumup.com/en-gb/invoices/dictionary/quotation/

The Buy option

Column name	Description
Part_Number	An ID of the Part Number Quoted
Supplier	Name of the supplier that submitted the quote
Volume	Minimum production volume for the quoted price
Unit_Cost	Quoted cost per unit
Non_recurring_expenses	One time expenses required for the production volume

Time to explore the quote data!

Case Study: Supply Chain Analytics in Power BI