aku case of reshoring
TRANSCRIPT
RESHORING ANALYSIS
Team members:
Claudia Amadio Riccardo Dell’Anna
Laura De Paris Martina Paladin
Alessandro Ursino
Giorgio Veneran Jessica Viotto
SOME DATAS
Aku: sport systems producer in the district of Montebelluna
Business: production and commercialization of technical footwear of hiking and mountaineering
Turnover: 21,5 million €
336 employees: 56 in Italy, 280 in Romania
60%25%15%
Far East Italy Romania
Production:
Sales: 45%30%25%
Abroad (others)Italy
-USA
-Japan
-Germany
Source: Testimony of the CEO Paolo Bordin, 10/02/2015
1st 2nd
OFFSHORE PROCESS Due to the cheaper workforce costs in 1996-97 started a delocalization process articulated in 2 main phases:
•Establishment of an owned plant in Cluj Napoca: Romanian employees worked side by side with Italian ones in order to share the know-how
Work with contractors in the Romanian territory that caused many problems such as: • quality problems • opportunistic behavior • loss of control • difficulties in the coordination of activities
CONSEQUENCESAku handled out
the entire production in
Romania
2010
2009
Financial collapse due to economic crisis and the credit contraction
2008
2005
Financial problems connected with the
investment in Romania
Canadian partnership to
cut manufacturing
costs
WHY RESHORING?
Loss of knowledge in the Italian headquarters
Inability to exploit synergies due to geographical proximity
Need to build a strong corporate and branding identity
Enhancing the core business promoting the MADE IN ITALY
2010 RESHORING
Communication instrument
Promotion of the corporate identity
Synergies with the design and
marketing offices
Geographical proximity but
cultural differenceReshoring based not on costs but on quality
FUTURE EXPECTATION PERSPECTIVES
Management does not believe that there will be room for further reshoring mainly because of labor cost differentials, especially in the production of low range products:
•Romania: average cost of labour per single peace produced = 20€ •Italy: average cost of labour per single peace produced = 60€
The main challenge for the company in the next future will be to maintain the advantages of the strategies previously identified.
THANK YOU FOR YOUR ATTENTION