RESHORING CASE

Frog Bikes

Company details
Code: 
Frog
Company name: 
Frog Bikes
Company country: 
United Kingdom
Number of employees: 
50
Sector: 
C - Manufacturing
Sector detail: 
C30 - Manufacture of other transport equipment
Sub-sectors: 
C30.9.2 - Manufacture of bicycles and invalid carriages
Reshoring details
Reshoring announcement date: 
16/02/2016
Starting implementation date: 
September, 2015
End of Implementation : 
August, 2016
Reshored to: 
United Kingdom
Location of affected unit(s): 
Pontypool
Location code: 
UKL16
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
50
Reasons for reshoring: 
Delivery time
Government support to relocation
High inventory costs
Need for greater organizational flexibility
Poor quality of offshored production
Case narrative: 

Frog bike is a British company that produces bikes for kids. The company  started activities in 2013, outsourcing the assembling to China. However, after a couple of years, the company has started to recognize several issues with offshoring. In particular, Frog bikes turned out to be unable to forecast demand, and the production in China  implied queues and waiting lists every time demand was higher than forecast. The reshoring decision has  received support from MAS, the UK advisory service specialized in supporting SME in their strategies including reshoring. Owners recognize the MAS role as very positive in aiding their decision . The backshoring has allowed the creation of 50 jobs in Pontypool.

Sources: 

Wales Online, 16/02/2016

The Guardian, 19/08/2016

Carmarthen Journal, 07/09/2016

Offshoring details
Offshoring location: 
China
Offshoring governance mode: 
Third party (external suppliers)