RESHORING CASE

Fly

Company details
Code: 
Fly
Company name: 
Fly
Company country: 
France
Number of employees: 
821
Sector: 
C - Manufacturing
Sector detail: 
C31 - Manufacture of furniture
Sub-sectors: 
C31.0 - Manufacture of furniture
Reshoring details
Reshoring announcement date: 
11/07/2016
Starting implementation date: 
January, 2014
End of Implementation : 
December, 2016
Reshored to: 
France
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
Third party (external suppliers)
Reasons for reshoring: 
"Made in" effect
Change in total costs of sourcing
Economic crisis
Exchange rate risk
Know-how in the home country
Case narrative: 

Fly is a French company that creates furniture for the European market. The company suffered a huge crisis in 2014. More than 1000 employees lost their job in that occasion. In order to come back to a rentable position, the company decided to backshore all production to Europe.
According to the CFO Nicolas Fink, the lower value of the Euro has helped reducing the gap in the production costs. The declared aim for the backshoring is to give more power to European designers in order to differenciate products with respect to competitors (expecially Ikea). The company had to reduce profit margins in order to gain market shares.

Sources: 

Francesoir, 11/07/2016

Sources link: 

http://www.francesoir.fr/tendances-eco-france/lenseigne-fly-veut-renaitr...

Offshoring details
Offshoring location: 
China
Offshored business function: 
Production