Manufacturing Insourcing Model

An Ontario manufacturer with annual revenues of ~$10 million engaged Sapling to determine whether it made sense to begin insourcing manufacturing, instead of using several third-party vendors around the world. Sapling assisted the client with the creation of a detailed financial model showing the relative benefits, including payback period, of insourcing relative to outsourcing. Sapling found capex of approximately $4 million would generate substantial cost savings, resulting in a 1.5 year payback period. The firm is currently using the model to negotiate with the bank and hopes to create dozens of manufacturing jobs in Ontario in the near future

Manufacturing Insourcing Model