CASE STUDY SS-LI-SA-01 | STRATEGIC ASSESMENT

Benchmark Driven Feasibility Study for International Relocation

Feasibility Assessment Using Benchmarking to Project Future-State Performance and Secure Strategic Partnerships

Light Industrial | Feasibility Study

22%

Projected EBITDA Improvement

3 Years

Time to Reach Domestic Cost Parity

5-Year

Walmart Supply Commitment

Challenge

Evaluating the risk and return of transitioning from outsourcing to in-house operations.

Delta Driver was engaged by a leading broom and brush distributor to determine whether shifting from outsourced manufacturing in China to a vertically integrated U.S. model would be viable. The client faced rising logistics costs, extended lead times, and concerns over supply reliability. The key question centered on whether domestic production could sustain margin and quality levels while improving responsiveness.

A full ROI evaluation was required, including financial, operational, and strategic considerations. The study’s goal was to build confidence for both internal stakeholders and key customer commitments, such as Walmart.

Solution

Integrating benchmark data and operational modeling to define an achievable, profitable future state.

Delta Driver designed a detailed process and cost model that mapped production flow, equipment needs, and labor utilization to define total cost of ownership. Benchmarking data was drawn from similar-sized U.S. manufacturers at multiple maturity levels—Reactive, Planning, and Proactive—to ensure accuracy and context.

Financial modeling projected EBITDA performance under varying automation and throughput scenarios. A phased implementation roadmap was created, incorporating technology infrastructure (ERP/MRP) and resource requirements for each milestone. The deliverable was a data-driven feasibility study enabling executive decision-making on relocation and vertical integration investment.

Results

Validated benchmark-based forecasting, enabling strategic commitment and measurable confidence in execution.

The feasibility study demonstrated that domestic production could match overseas cost levels within three years through automation and waste reduction. Benchmark integration allowed Delta Driver to accurately project a 22% EBITDA improvement potential in the U.S. model.

Walmart extended a five-year supply commitment based on the demonstrated stability and future performance potential. The client used Delta Driver’s projections to secure financing aligned with the new capital investment plan. The study validated Delta Driver’s capability to integrate benchmark data into forward-looking operational models for measurable value creation.

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