SlideShare a Scribd company logo
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
CONSEQUENCES
Aku 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 difference
Reshoring 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

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Aku case of reshoring

  • 1. RESHORING ANALYSIS Team members: Claudia Amadio Riccardo Dell’Anna Laura De Paris Martina Paladin Alessandro Ursino Giorgio Veneran Jessica Viotto
  • 2. 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
  • 3. 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
  • 4. CONSEQUENCES Aku 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
  • 5. 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
  • 6. 2010 RESHORING Communication instrument Promotion of the corporate identity Synergies with the design and marketing offices Geographical proximity but cultural difference Reshoring based not on costs but on quality
  • 7. 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.
  • 8. THANK YOU FOR YOUR ATTENTION