RESHORING CASE

Famoco

Company details
Company name: 
Famoco
Company country: 
France
Number of employees: 
100
Sector: 
C - Manufacturing
Sector detail: 
C26 - Manufacture of computer, electronic and optical products
Sub-sectors: 
C26.4 - Manufacture of consumer electronics
Reshoring details
Reshoring announcement date: 
09/01/2018
Starting implementation date: 
January, 2018
Reshored to: 
France
Reshored business function: 
Production
Reasons for reshoring: 
Automation of production process
Change in total costs of sourcing
Cultural and linguistic differences
Size of the lots
Case narrative: 

Famoco is French company founded in 2010 that produces secured professional Android devices. Since its constitution, the company outsourced and offshored the production activities in China, given the huge availability of suppliers at the local level. However, the company has been experienced criticalities in managing the relationship with Chinese contractors. Among the most important problems, there are the reduced cost gap between France and China, and the small size of production lots. Moreover, cultural differences made the relationships with local partners difficult. Therefore, in 2018, Famoco decided to repatriate some of its production activities to France, leveraging also on the higher technological level of production facilities at the home country. 

Sources: 

The Conversation 09/01/2018

Usine Nouvelle 20/02/2018

Usine Nouvelle 01/03/2018

Offshoring details
Offshoring date: 
2010
Offshoring location: 
China
Offshored business function: 
Production
Reason for offshoring: 
Availability of qualified suppliers in the host country / lack of suitable suppliers in the home country