Reshoring & Tariff Strategy worked example

Supplier Switching Cost at 43% share requiring full requalification: a worked example in reshoring & tariff strategy

Suppose share requiring full requalification falls to 43%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Totals the one-time cost of moving a portfolio of parts to a new supplier, from PPAP to program onboarding.

The inputs for this scenario

  • Affected part numbers: 120 parts (held at the documented default)
  • Switch cost per part: 850 $/part (held at the documented default)
  • Share requiring full requalification: 43 % (the input this scenario stresses; the baseline uses 60)
  • Program-level transition cost: 40,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Total switching cost ($) = affected parts x switch cost per part x requalification share% + program transition cost.
  • Total supplier switching cost works out to 83,860 $ at these inputs, and this is the headline figure for the scenario.
  • Supplier switching cost per unit works out to 699 $ / piece at these inputs.
  • Variable supplier switching cost works out to 43,860 $ at these inputs.
  • Fixed supplier switching cost adder works out to 40,000 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where share requiring full requalification sits at 60% and the headline result is 101,200 $, this scenario comes in 17.13% below the baseline at 83,860 $.
  • It computes the total cost to switch suppliers — variable per-part qualification cost plus a fixed program transition cost — and the resulting cost per affected part. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total supplier switching cost: 83,860 $ (headline result)
  • Supplier switching cost per unit: 699 $ / piece
  • Variable supplier switching cost: 43,860 $
  • Fixed supplier switching cost adder: 40,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Switching Cost calculator, set share requiring full requalification to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.