RESHORING CASE

Coyote

Company details
Company name: 
Coyote
Company country: 
France
Number of employees: 
280
Sector: 
C - Manufacturing
Sector detail: 
C26 - Manufacture of computer, electronic and optical products
Sub-sectors: 
C26.51 - Manufacture of instruments and appliances for measuring, testing and navigation
Reshoring details
Reshoring announcement date: 
29/05/2017
Reshored to: 
France
Location of affected unit(s): 
Bayonne
Location code: 
FRI15
Reshored business function: 
Production
Reshoring governance mode: 
Third party (external suppliers)
Reasons for reshoring: 
Change in total costs of sourcing
Poor quality of offshored production
Production flexibility
Proximity to customers
Size of the lots
Case narrative: 

Coyote is a French provider of driving assistant services through multiple platforms (e.g. connected devices, mobile applications, embedded systems, and cloud-based services). In 2015, the company decided to reshore in France the manufacturing activities earlier offshored and outsourced in China. The main drivers of the relocation decision were: a) poor product quality problems; b) small size of production lots; c) flexibility; d) proximity to customers. The backshoring was implemented adopting an out-sourcing governance mode after selecting a contract manufacturer in Bayonne. After the relocation decision, the product final price did not increase since the higher labour cost in France was offset by the higher productivity of French employees and the reduction of transportation costs.

Sources: 

Usine nouvelle 29/05/2018

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production
Offshoring governance mode: 
Third party (external suppliers)