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Case Study: Strategic Nearshoring


Client: Health & Consumer Goods Company


Data-Driven Site Selection Optimized Production

Business Challenge

A global health and consumer goods company sought to expand its North American manufacturing footprint to enhance supply chain agility and reduce lead times. Historically reliant on a centralized production model, the company faced increasing demand and logistical challenges that necessitated a more regionally responsive approach. Establishing a second facility in North America to produce domestically would allow for faster market response, improved production flexibility, and reduced dependency on long-distance supply routes.

 

To determine the optimal site, the company needed a data-driven evaluation of multiple locations, considering factors such as labor market conditions, tax incentives, transportation costs, and sustainability impact. The goal was to ensure that the new facility balanced cost efficiency with operational scalability, supporting both current production needs and long-term business growth.

Solution Delivered

Miebach conducted a multi-phase site selection analysis, starting with an assessment of the company’s existing production and logistics network. A comprehensive market study was performed across multiple candidate regions, evaluating workforce availability, operational costs, business incentives, and infrastructure readiness.

 

Using advanced modeling, Miebach compared greenfield and brownfield development scenarios, analyzing capital investment requirements, construction timelines, and long-term cost implications. To ensure a robust recommendation, sensitivity analyses were conducted to assess how different cost assumptions, such as labor fluctuations and transportation rate changes, would impact the final decision. The final recommendation identified the most cost-effective and strategically located site, offering the best combination of labor access, tax advantages, and supply chain efficiency. A phased implementation roadmap was developed, ensuring a structured transition to the new facility while optimizing cost and service performance.

Results & Benefits

  • Cost Savings: Domestic plant cost-neutral vs. the existing overseas plant when considering expediting costs and risk of delivery disruptions

  • Improved Supply Chain Agility: Reduced lead times by 80% with onshore production, enhancing service reliability

  • Long-Term Growth Readiness: The recommended site supports scalability for projected demand increases

  • Tax & Incentive Benefits: The selected location leveraged favorable tax policies and economic incentives to improve cost efficiency
80%
reduction in lead times

 

By leveraging Miebach’s data-driven approach, the client was able to select a production location that balances cost, efficiency, and strategic growth potential. With the implementation roadmap in place, they are well-positioned to build a resilient, future-ready North American manufacturing network.