More on China Sourcing

1 comment August 9th, 2007 David Bush - Iasta

Over on Spend Matters, Jason has been busy with his 28 part series on China sourcing and supply risk. Here on the ESF home front, I have an update that is a little closer to home and based on the recent Mattel recall.

A few nights ago, my wife and I had to do an inventory check of the toy room and toy boxes (after bedtime, of course), to go through the extensive list of lead paint contaminated toys that were strewn throughout our house.

Upon completion of our mission, 7 well used toys were quietly escorted to the our own version of Death Row. Unceremoniously stuffed into mob-style garbage bag, these toys await return somewhere to meet a very unglamourous end. I suppose we will be given some type of voucher to make up for the trouble but that is nothing compared to the PR disaster that Mattel is dealing with now. I am sure I will get a few questions that will require my advanced adult mind to misdirect and create confusion for a 2yr old that does not understand where a few prized Elmo’s are but the issue will quickly go away for us.

I don’t blame Mattel at all for this, parents demand cheap and disposable toys which have to be made cheaply, to be sold cheaply. This does show, however, the risks associated with how these things make their way here and Mattel is probably spending huge amounts of money to switch suppliers, issues rebates/coupons and change processes to avoid future problems. Of course, just like many other things (reverse auctions in 2001/ethanol in 2008), the rush to chase the newest elixir will result in a short term backlash and long term stabilization and benefit.

Entry Filed under: General, Global Supply Issues/Risk, Suppliers