CASE STUDY SS-AP-SC-01 | Network Optimization

Network Optimization Success Story: Tier 1 Automotive Lighting Supplier

Strategic Relocation Benchmarking, and Greenfield Planning to Mitigate Tariff Risk

Automotive | Network Optimization

$2.2M

Estimated Relocation Investment Quantified

Validated

EBITDA Improvement from Tariff & Labor Optimization

Resilient

Supply Chain Positioned for Long-Term Flexibility

Challenge

The company faced increasing tariff exposure, rising labor costs, and capacity constraints at its Shanghai facility, putting margins and growth at risk. Leadership needed to evaluate relocation options without disrupting quality or customer commitments. The complexity of global benchmarking and transition risk made decision-making difficult.

Significant tariff exposure and geopolitical risk in China driving margin compression
Rising labor costs and capacity constraints at the Shanghai facility limiting growth
Lack of data-driven benchmarking to evaluate optimal relocation geography
Complex PPAP requirements and equipment transfer risks threatening business continuity
Need to maintain quality, delivery reliability, and customer approvals during transition

Solution

Delta Driver conducted a comprehensive global benchmarking and cost analysis to identify the optimal relocation strategy. By modeling labor, logistics, and risk factors across multiple countries, the team provided a clear, data-driven decision framework. A detailed Greenfield design and relocation roadmap ensured minimal disruption during execution.

Conducted benchmarking analysis across nine countries evaluating cost, risk, and feasibility
Modeled labor, logistics, and total cost of ownership using China as the baseline
Narrowed to five viable Greenfield locations based on infrastructure and stability
Developed future-state facility layout with QA, EH&S, and operational design integration
Built a detailed relocation roadmap including move sequencing, inventory prebuild, and cost modeling

Results

The initiative delivered a clear, data-driven relocation strategy that balanced cost, risk, and operational continuity. Leadership gained confidence through quantified savings and detailed execution planning. The company is now positioned for improved competitiveness, resilience, and long-term flexibility.

Delivered a data-driven relocation strategy enabling final country selection
Quantified ~$2.2M relocation cost with validated EBITDA improvement potential
Established benchmarking metrics for ongoing cost, labor, and productivity management
Created a comprehensive implementation plan covering approvals, staffing, and execution
Positioned the company for cost competitiveness, resilience, and long-term flexibility

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