The paper "Supply Chain Management of Mattel, Inc" is a good example of a management case study. With the increasing complexity of products and services, supply chains have turned out to be more and more multifaceted in the wake of globalization and outsourcing. In consequence, this has influenced risk, altering it constantly. A risk is the likelihood of damage, hazard, injury, or other outcomes that are unwanted; in this case, the risk is associated with the recall of the Mattel toys. Basically, changing and erratic demands in the toy industry have generated a volatility layer because of rapid product lifecycles as well as customized and undersized selling-openings.
The demand for toys and the needs of the toy retailers are exceedingly volatile; therefore, toy manufacturers such as Mattel, Inc have been very responsive in the market. Still, the majority of toy manufacturers respond to this volatile demand with conventional strategies that cannot meet the required demand, especially in terms of mass-production. As will be evidenced in this report, the toy industry supply chain is becoming more dynamic and complex due to the escalation of risks.
The risk’ s focal points are changing continuously within the supply networks dynamism mainly because the supply operations have been outsourced to the foreign countries and also due to the fact that the product/service life-cycle is increasingly becoming complex. Mattel, Inc has recently been experiencing a decline in the sales of its toy products; in consequence, the company’ s stock value has been cut by almost half. In general, the toy industry has experienced a growth in revenue, and the competitors have gained market share at the expense of Mattel.
Mattel was once the world’ s biggest toymaker, but poor supply management and recalling of toys in 2007 have resulted in the decline of sales. Still, Mattel’ s manufacturing base is diversified internationally with facilities in different countries that offer efficient quality control practices. Furthermore, the company’ s toy brands are the most recognizable and powerful across the globe. In this report, the focus is on Mattel’ s supply chain with a view of the fact that effective management of the supply chain is a valuable way of improving organizational performance as well as securing competitive advantage.
This report is divided into four sections: (i) Mattel’ s company situational analysis; (ii) Porter’ s five forces analysis; (iii) Mattel’ s supply chain map description; (iv) supply chain strategy and value proposition. 1.0 Introduction Owing to the present competitive scenario, companies are challenged to search for ways of meeting the expectations of the customers cost-effectively. This can be achieved by looking for parts of the supply-chain process that are less competitive, finding out the customer needs that are yet to be met, formulate goals for improvement, and swiftly adopting the needed improvements (Bala, 2014).
Mattel, Inc is headquartered in California and focuses on designing, manufacturing, as well as marketing different types of toy products. The core product lines of the company include; Fisher-Price preschool toys, Hot Wheels diecast vehicles, Barbie fashion dolls as well as Disney toys. Mattel also manufactured toys for moviemakers, but the majority of the toys are manufactured outside the U. S. (its biggest market), mainly in China, and other countries in Southeast Asia. The company’ s main manufacturing facilities are in China, Mexico, Indonesia, Malaysia, and Thailand.
Furthermore, the company uses vendors (third-party manufacturers) in Asia, Brazil, Mexico, Australia, and New Zealand. Mattel was established in 1944 and its first products, included dollhouse furniture and simple picture frames that had mixed success.