Make vs. Buy Assessment Identifies 13% in Potential Annual Savings and Informs Footprint Optimization Type / to choose a block

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The Challenge

A manufacturer was experiencing declining demand for a legacy product line, creating excess capacity within an existing production facility. Leadership believed the facility could potentially be repurposed for higher-value activities, but first needed to understand whether outsourcing the legacy product line was operationally feasible and financially attractive.

The company required a fact-based assessment of external manufacturing options, potential cost savings, operational risks, and the trade-offs associated with full or partial outsourcing before making a broader footprint decision.

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Our Approach

TriVista led a structured make vs. buy assessment focused on a high-volume, representative product to evaluate the viability of outsourcing production while maintaining quality and continuity.

The team identified and qualified a targeted group of external manufacturing partners, then gathered directional pricing to establish the potential cost of outsourcing key components and sub-assemblies. TriVista developed scenario-based cost models that incorporated labor, facility, logistics, and supplier pricing considerations to compare the financial impact of different outsourcing strategies.

In parallel, TriVista evaluated the operational feasibility of transferring each stage of the production process to external partners. This analysis identified which processes could be readily outsourced, where additional coordination or capability development would be required, and what steps would be necessary to build a fully costed, risk-adjusted business case in a subsequent phase.

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The Results

TriVista’s analysis demonstrated that outsourcing was both operationally feasible and potentially cost-advantageous, giving leadership a clearer path to evaluate the future of the legacy product line and broader manufacturing footprint.

Supplier pricing averaged only a 10% premium to current internal costs, while three components could be sourced below existing cost levels, representing approximately 19% in immediate annual savings for those components. Depending on the level of outsourcing pursued, the analysis also identified potential annual personnel savings of approximately 5% to 13%.

The assessment confirmed that all core manufacturing processes could be supported by external partners, while clearly identifying the areas that would require additional alignment before implementation. With a quantified view of costs, savings opportunities, and operational readiness, the client gained a strong foundation for evaluating outsourcing scenarios and making a more confident, data-driven decision about future footprint optimization.