Reshoring & Tariff Strategy worked example

Supplier Relocation ROI with one-time relocation & tooling transfer cost of 62,500 $: a worked example

Push one-time relocation & tooling transfer cost up to 62,500 $ and the picture changes. This example computes every intermediate figure at that operating point. Use it when supplier relocation roi in reshoring and tariff strategy is being compared against another reshoring and tariff strategy project for the same budget.

The inputs for this scenario

  • One-time relocation & tooling transfer cost: 62,500 $ (raised for this scenario; the documented default is 25,000)
  • Annual landed-cost savings after relocation: 18,000 $ / yr (unchanged)
  • Annual dual-source & oversight cost at new supplier: 2,500 $ / yr (unchanged)

Working through the calculation

  • Applying the documented formula (Net annual supplier relocation roi savings = annual supplier relocation roi savings - annual supplier relocation roi support cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 4.03 yr for supplier relocation roi payback period, the number this scenario is built around.
  • At this operating point the engine returns 15,500 $ / yr for net annual supplier relocation roi savings.
  • At this operating point the engine returns 62,500 $ for supplier relocation roi investment.
  • At this operating point the engine returns 15,000 $ for five-year net supplier relocation roi value.

How this compares with the baseline

  • Against the tool's baseline example, where one-time relocation & tooling transfer cost sits at 25,000 $ and the headline result is 1.61 yr, this scenario comes in 150% above the baseline at 4.03 yr.
  • It computes the payback period in years for a supplier relocation by dividing the one-time transfer cost by the net annual savings (gross savings minus ongoing oversight cost). The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Supplier relocation roi payback period: 4.03 yr (headline result)
  • Net annual supplier relocation roi savings: 15,500 $ / yr
  • Supplier relocation roi investment: 62,500 $
  • Five-year net supplier relocation roi value: 15,000 $

Run it with your numbers

  • Every input above is editable in the live Supplier Relocation ROI calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.