# Nearshore Supplier Transition Plan Worksheet

> Source: https://netray.co/tools/nearshore-supplier-transition-plan-worksheet
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Track each part moving from an overseas source to a nearshore supplier with annual savings and qualification status.

## Category

supply-chain

## Region

Mexico

## Industry

Nearshoring Manufacturing

## Audience

- Procurement manager
- Supplier quality engineer
- Program manager

## Tool

**Kind:** worksheet

**Mode:** editable

**Currency:** $

**Columns:**

#### Part number

**Key:** part

**Type:** text

#### Current supplier

**Key:** old_sup

**Type:** text

#### Nearshore supplier

**Key:** new_sup

**Type:** text

#### Annual volume

**Key:** qty

**Type:** number

#### Current landed cost per unit

**Key:** old_cost

**Type:** number

**Format:** currency

#### New landed cost per unit

**Key:** new_cost

**Type:** number

**Format:** currency

#### One-time tooling and qualification

**Key:** tooling

**Type:** number

**Format:** currency

#### Annual saving

**Key:** saving

**Type:** number

**Expr:** (old_cost - new_cost) * qty

**Format:** currency

#### Payback

**Key:** payback

**Type:** number

**Expr:** if(gt(saving, 0), tooling / saving * 12, 0)

**Format:** months

#### Stage

**Key:** stage

**Type:** select

**Options:**

- RFQ
- Sample
- FAI
- PPAP
- Pilot lot
- Released

#### Target release

**Key:** due

**Type:** date

**Rows:**

**Part:** HSG-0045

**Old sup:** Ningbo Metal

**New sup:** Maquinados Norte

**Qty:** 24000

**Old cost:** 14.8

**New cost:** 13.9

**Tooling:** 18000

**Stage:** FAI

**Due:** 2027-02-15

**Part:** CBL-7781

**Old sup:** Shenzhen Wire

**New sup:** Arneses del Bajio

**Qty:** 60000

**Old cost:** 3.4

**New cost:** 3.65

**Tooling:** 6000

**Stage:** Sample

**Due:** 2027-03-31

**Part:** BRK-1001

**Old sup:** Taichung Stamping

**New sup:** Estampados Saltillo

**Qty:** 120000

**Old cost:** 0.62

**New cost:** 0.58

**Tooling:** 25000

**Stage:** PPAP

**Due:** 2027-01-20

**Part:** PKG-3300

**Old sup:** Dongguan Pack

**New sup:** Empaques Monterrey

**Qty:** 80000

**Old cost:** 1.15

**New cost:** 1.02

**Tooling:** 3500

**Stage:** RFQ

**Due:** 2027-04-30

**Totals:**

#### Total annual saving

**Key:** saving

**Agg:** sum

**Format:** currency

#### Total one-time cost

**Key:** tooling

**Agg:** sum

**Format:** currency

**Summary:**

#### Program payback on net savings

**Key:** program_payback

**Expr:** if(gt(sum_saving, 0), sum_tooling / sum_saving * 12, 0)

**Format:** months

**Primary:** true

#### Parts in the program

**Key:** parts

**Expr:** count

**Format:** integer

**Notes:** Savings can be negative on some lines, which is acceptable if the program is justified by lead time, tariff exposure or risk. Landed cost should include freight, duty, inventory carrying cost and expected expedites. A line with a negative saving shows payback of 0 in this sheet.

## Content

**Intro:** Moving parts to a nearshore supplier is a project with a qualification path, tooling spend and a savings case, not a single purchase order change. This worksheet is the program tracker that purchasing, quality and finance can all update in one place.

**Sections:**

#### How to use it

**Body:** Add one row per part. Enter the current landed cost, the quoted nearshore landed cost and the annual volume. Add the one-time cost for tooling, samples, first article inspection and PPAP. Update the stage as the supplier progresses, and export the table for the weekly sourcing review.

**Bullets:**

- Use landed cost, not unit price, on both sides
- Include freight, duty, inventory carrying cost and expedites
- Set a target release date linked to the last buy from the old source
- Record the stage honestly so slippage shows early

#### The method behind it

**Body:** Annual saving is the difference in landed unit cost times annual volume. Payback in months divides the one-time cost by annual saving and multiplies by 12. Lines with a negative saving are shown with zero payback and should be justified by other factors such as lead time reduction, lower safety stock, tariff avoidance or dual sourcing for risk.

#### Reading the result

**Body:** The program payback tells finance when the initial investment is recovered across all parts. Look at the stage column too: a program with great savings but most parts still at RFQ has a long path before cash arrives. Sort by due date to see which parts risk running out of stock during the changeover.

#### Common mistakes

**Body:** Comparing ex-works nearshore prices with delivered Asian prices, ignoring the inventory freed up by shorter lead times, and not planning the overlap period when both suppliers ship. Another trap is underestimating qualification time for regulated products, where customer approval of a source change can take months.

**Cta:** If item costs, suppliers and approval status live in your ERP, Netray can build this tracker as a live view that updates with purchase and receipt data.

**Faq:**

#### What should be in landed cost?

**Answer:** Include unit price, freight, insurance, duties and fees, brokerage, inventory carrying cost for the lead time, and a reasonable allowance for expedites and quality issues. Use the same basis for both suppliers.

#### How do I handle customer approval?

**Answer:** For aerospace, medical, automotive and defense customers, a source change usually needs notice or approval. Add that step to the stage and the target date, and do not release the last buy until approval is in hand.

#### Why does a line show zero payback?

**Answer:** The formula returns zero when the saving is zero or negative, since payback is not meaningful. Review those lines for the strategic reason to proceed, or cancel them.

#### Can I add dual sourcing?

**Answer:** Yes. Add a row per supplier with the planned volume split, so each line reflects the actual share and cost. This is useful when you keep the Asian source as a secondary supplier.

## Search terms

supplier transition plan template, nearshoring supplier qualification tracker, china to mexico sourcing worksheet, landed cost comparison excel, resourcing tracker excel, supplier transfer plan, nearshoring savings tracker, second source qualification tracker

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