Introduction
Even though toy firms have done well in the global economic setting, most people disregard them. Mattel is one of the toy businesses that have done well in today’s financial atmosphere. Harold Mattson and Elliot 1945 established the firm, which has since grown to become the second-largest toy manufacturer. Mattel’s merchandise is now readily available throughout Europe and the sphere. The company is primarily known as a toy manufacturing juggernaut, with Barbie dolls being its most famous and recognizable brand. Because of its inventive approach, Mattel’s supply chain management (SCM) methodology has been recognized as the most crucial tool for improving its commodities abroad.
Drivers the Mattel Company Needs to Implement to Maintain a Sustainable Supply Chain
To improve its supply chain, Mattel has to first reduce costs, which is one of the possible drivers for the globalization of its supply chain strategy. International demand will rise as a result, and there will be fierce competition from low-cost businesses. The cost-cutting strategies aid in the clearance process, generating earnings. Second, technology is developing more quickly in the toy industry (Mangan and Lalwani 2019). Several technologically focused toys assist youngsters in building their social and neurological skills and numerous coping mechanisms that benefit brain development.
Third, diversified and shifting consumer demand – The global toy industry has significantly transformed due to shifting consumer demand and behavior. Numerous overseas marketplaces have seen a wide variety of client demand. To get around this, Mattel has to thoroughly analyze the market, taking into account current trends, historical growth patterns, and other development factors (Shah and Ganji, 2017). Fourth, due to growing customer awareness of plastic’s harmful effects on the environment and human health, toy manufacturers are under a lot of ethical and green pressure. Parents struggle with whether or not to offer their children plastic toys. Because toys account for 90% of plastic consumption, toy manufacturers are under enormous pressure (Shah and Ganji, 2017). Companies are employing toys free of BPA and very little or recycled plastic to use less plastic. Mattel should also use biodegradable materials for product packaging.
Effectiveness of the Lean System Adopted By the Company
A supply chain that operates at maximum efficiency is said to be lean. It does it with the least amount of possible loss and waste while preserving enough flexibility to account for unanticipated delays. The lean system aids in removing unnecessary or value-less tasks from the supply chains (Ntabe, 2020). Lean manufacturing may reduce waste inside a facility, arguably its most significant advantage. This method removes old or obsolete goods, which businesses hold onto in large quantities together with garbage. The technique lowers operating costs while simultaneously minimizing trash and waste generation.
Lean production approaches establish processes and help Mantel’s personnel gain skills to support variations in the workplace that new trades produce, going beyond just dropping prices and increasing efficiency. Creating work rapidly, in small iterations, wirelessly, and delivering it on schedule increases Mantel’s competitive edge. Longer lead times are not a problem in large volume, predictable demand businesses where lean supply works well (Jeffery, M., et al 2017). In a dynamic, specialist sector that is constantly changing, poor supply is less adequate s (Ntabe, 2020). The potential downside risks are pretty significant if best practices, like TQM and collaboration between enterprises, are not established, as Mattel has discovered to its cost.
Do You Think The Firm Is Comprehensively Employing The Lean Strategy?
The aim of a corporation using the lean manufacturing method is efficiency. Lean manufacturing is based on minimizing resource wastage while increasing production. Mattel has only sometimes had great success with this strategy. Early in the new millennium, Mattel outsourced its manufacturing to firms in China. Mattel was impacted when numerous Chinese manufacturers were shut down for utilizing lead paint in their goods in 2007 (Collier and Sarkis, 2021). Due to this, Mattel had to issue some recalls, particularly for their perennially popular Barbie brand.
Supply Chain Strategy and Design of Mattel
Due to the cutting-edge approach involved, Mattel’s supply chain management (SCM) model to improve its products internationally has been regarded as the critical method. Forecasting, collaborative planning, and replenishment are some of the main pillars of Mattel’s supply chain management (Collier and Sarkis, 2021). By reducing the number of records needed for the associates to work with supply chain organizations and allowing flattening out the expenses incurred by dealers and vendors, the company has been forming ties with other businesses.
Ways in Which Current Strategy Can Be Greatly Improved
When Mattel increases productivity in the right business areas, it might significantly expand its services. The current strategy can be greatly improved using five essential components. The first involves efficiently organizing the manufacturing process and determining the new capacities for implementing new toys in their working structure (Zhou, 2018). The results of the industry’s total earnings are greatly influenced by sourcing. The surgery is made in another way. The best method for improving the organization’s overall serviceability would be to produce certain toys when needed (Vijayvargiya, Thakkar, and Agarwal, 2017).
A reliable logistics network must be built to deliver goods. Growing environmental adaptability enhances the potential for such a planning procedure to produce better results. The final step of the surgery is the return. Returning defective goods is essential to this strategy because it increases the likelihood of forging cooperative relationships with suppliers in reports of business maneuvers.
Current Outsourcing Strategy of Mattel the Consequences of Outsourcing or Producing In-House
Outsourcing is the procedure of selling out company operations and methods to third-party agencies. Offshoring may provide significant benefits ranging from reduction of prices and better effectiveness to a deeper strategic benefit. A potential financial risk, on the other hand, is typically the erosion of authority over the contractual activity (Maraesa, 2019). Mattel should carefully assess the pros and downsides of sourcing before deciding to transfer any operations or corporate operations. Strategic sourcing may allow a firm to focus on its strengths by allowing staff to focus on their principal duties and long-term plans (Arya & Ramanan, 2022). By picking an outsourcing firm that specializes in the operation that the company needs them to execute, an enterprise may obtain more efficient, faster, and often higher-value services.
Mattel is the parent company of well-known trademarks such as Barbie, Power Wheels, Fisher-price and Compact (Islam & Al-Mamun, 2021). Mattel adopted offshoring as a key instrument in value cycle administration, with China emerging as a preferred location. Nevertheless, on November 15, 2009, Mattel canceled almost 5,020,231 toys made in China (Rangaswamy et al., 2018). This was the company’s second biggest recall of toys with excessive levels of mercury. Mattel banned 30 million items made in China multiple times in less than two weeks.
Despite having a comprehensive evaluation and monitoring method in place at several of its facilities in China, the firm could not prevent a major fraud. Mattel took several steps to repair the harm, but it needed to be explored whether it could reclaim the faith of its customers. Mattel’s production is outsourced to Jakarta, Singapore, Bangkok, Guatemala, Scotland, and China. Mattel’s outsourcing is concentrated in Beijing, which contributes 68% of total output. Mattel has one plant in the U. S. and one in Belfast, with further reprimanding in Argentina and Asian countries.
Mattel utilizes in-house production plants for over half of their production, which is relatively high when contrasted to Mattel, which utilizes nearly little in-house manufacturing. The 50% generated by non-Mattel operated facilities is obliged to function under the supplier’s operation. This is to stay up with the ever toy industry, which has a one year life cycle or shorter. Mattel sells useful and creative items that they primarily provide to the United States (33%), Germany (25%), and China (29%), with Asia and European countries on the rise.
Supply Chain Risks Inherent in Mattel’s Supply Chain and Its Solution
While corporations are gradually embracing domestic or specialized manufacturing processes for finished products, the buying of many important raw materials are highly internationalized. As a consequence, the distribution of certain important goods is vulnerable to widespread disruption caused by surges in need or factory bottlenecks (Scott & Scott, 2018). Plastics producers around Europe cautioned of imminent serious limitations of specific polymeric substances, which are utilized in the manufacturing of sophisticated plastic elements such as automotive parts, by the close of 2017.
To deal with this particular issue, one can advise that Mattel reassess its business ethics. Even though the procedure of rethinking the method to supply recovery has actually begun, the organization risks faltering again if the present ethical grounds are not changed. As a result, it is recommended that the notion of business ethical obligation be incorporated into Mattel’s SCM architecture (Moons, 2018). CSR is commonly defined as a schedule of measures to decrease externalized expenses or to prevent differential tensions. It encourages a more appropriate way to handling ethical quandaries, such as the decision between a lower raw resources and consumer wellness
Strong connections with vendors, producers, transporters, and other third organizations are critical to supply chain success. Although conventions and service standards will regulate the connection, strong day-to-day connection maintenance will generate trust and assist the Mattel company in handling challenges (Dubey, 2018). A sustainable logistic chain requires backup strategies and mitigation steps. Include backup vendors and producers, alternative logistical options, extra storage facilities, and equivalent economic resilience planning throughout the logistics system (Momenitabar et al., 2022). Assess distribution network risks based on probability and effect, and anticipate for disastrous situations.
The organization of the supply chain management structure also demonstrates that Mattel could benefit from better techniques for aligning its sustainable supply chain with the remainder of the business configuration. As a result, the present SCM plan demonstrates that there is a direct relationship between the management style, moral norms, and real success inside the SCM structure (Mitchell, 2021). Nevertheless, Mattel is currently recuperating from the devastating impacts of the 2009 debacle, and the present vendors with whom the company works produce subpar results.
Conclusion
Mattel held the condition intensely and was unsurprised by the concern. Merchandise faults and dealer troubles are common in their daily procedures since they have previously dealt with similar challenges. Mattes employs both domestic and foreign suppliers to foresee and avoid future problems. Mattel took full responsibility for the whole recall when no factory was willing to be held accountable. It requires courage to own up, and activities should represent the establishment’s personality in good and bad times. Mattel must try hard to solve any difficulties, adhere to quality standards while producing toys, prompt customers that the lowest line is kid protection and product shield, and partner with global corporations.
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