THEME: reducing toy recalls in Mattel due to unsafe products
• Annual sales of toys in North America were growing at a slower pace – about 1%
• There were a large number of players, about 880 companies in US
• 70% of the toy companies employed less than 20 persons
• About 60% of the toys sold in the world were made in China
• Chinese toy imports accounted for a full 86% of toy imports to the US
• Toy sales are seasonal
• A lot of uncertainty around new product success
• Mattel is the No.1 toy maker in the world
• Mattel has large number of third-party manufacturers
• Using off-shoring strategy
• Mattel produced its core brands in company-owned facilities, but used ...view middle of the document...
It is important that management should be improved to handle the complexity of global supply chains. All those involved in the supply chain must make effort to ensure product quality and safety. In off-shore production, manufacturers can prevent defects with careful production. Mattel can prevent most of these types of defects with efficiency quality control and inspection systems.
• Develop robust systems for quality control and testing of the toy manufactured at its suppliers’ factories
• The off-shoring companies need to develop systems to engage more directly and closely...