Fiamm restoring case study

1. FIAMM s.p.a.
MATEA GOTTWALD 858507
ARIANNA FANZUTTI 859293
GIULIA BARZON 841460
MARTINA COCCOLO 859330
MATTHIAS CECHET 857482
LIVIO INCONTRO 861020
INTERNATIONAL MANAGEMENT
Prof. MICELLI STEFANO

2. COMPANY PROFILE
 FIAMM Group born from the Italian passion of the Dolcetta family characterized by
integrity, quality, respect for people and the environment
 The FIAMM Group has factories and offices all over the world
 Experience, inventiveness, passion, talent, precision and ability to comply with the client’s
requirements are the strengths of its highly qualified human resources.
 Multicultural environment, but closely linked to the territory

3. VALUES
PROXIMITY INNOVATION SUSTANABILITY GLOBAL PRESENCE
 Close to customers throughout the world
 Innovative energy that's capable of responding to the changes in the market
 Sustainable development of the planet
 Achieving production and commercial objectives worldwide
The goal is to meet and anticipate the market's demand for clean energy, security and
communications in a suitable fashion.

4.  Ability, quality and loyalty to their costumers
 Major supplier for some of the world’s leading car manufacturers such as GM,
Mercedes Benz, Peugeot-Citroen, Renault, Ferrari, Maserati, Jaguar, Nissan and
Toyota
 Safe and environment friendly batteries production
 Global distribution and commercial network
A world leader in the market of acoustic signals, with a significant
position in batteries, antennas and OLED technology field.
MADE IN ITALY
"Your world, our energy"

5. OFFSHORING
Offshoring is the relocation of a business process from one
country to another—usually an operational process:
manufacturing, or a supporting processes: accounting.
Fiamm created important production centres in India and in Czech
Republic:
INDIA: in 2004 Fiamm established its presence in India with the
production of horns for cars, this caused the closing of the factory
in France (Clacson).
CZECH REPUBLIC: in 1998 and then in 2005 Fiamm bought
plants and transferred the majority of the production of batteries.
About 700 employers were hired to speed up production.

6. REASONS FOR OFFSHORING
• Transfer the production to low-wage countries (for example, if 100 is the cost of labour in
Italy, in the Czech Republic falls to 25 and in India under 5)
• Cut production costs
• Gain access to worldwide capabilities
• Overcome the economic crisis
BUT…
These decisions were not in line with the union agreement signed for the maintenance of
productions in Vicenza.
The company relocated in China and the Czech Republic the production located in factories of
Almisano and Montecchio Maggiore(province of Vicenza), resulting in the loss of about 440 job
positions.

7. RESHORING
Definition: Company currently basing some or all of their manufacturing
overseas relocates that manufacturing to the home country.
In 2012 Fiamm decided to reallocate its production in Italy.
The factories chosen are:
 Montecchio Maggiore (Vicenza), the same that was closed 4 years before
by the company
 The improvement for an existing factory in Abruzzo province.

8. REASONS FOR RESHORING
Fiamm found several inefficiencies in the factory located in Czech Republic
with respect to the counterpart in Italy:
 Low production compared to the Italian factories
 Industrial waste during the production
 High employees turn-over
 Inferior quality of workmanship
In order to avoid this problems the company chose a new strategic plan!

9. NEW STRATEGIC PLAN IN ITALY:
 Reallocation of the production and the R&D department
 Higher levels of R&D
 Premium price for Italian quality
 Proximity to companies’ research centres to make it more attractive
 React more quickly to changes in demand
 Minimize coordination costs of departments
…Back to Montecchio Maggiore
 Bess devices production (Battery
energy storage system)
 more than one hundred employees
 Long-term development plan up to 5
years

10. THANKS FOR
YOUR
ATTENTION!