Efficiency of a World’s Largest Toys Manufacturer Company

Question 1 

(a) 

Mattel would focus on the use of the supply chain operations reference model (SCOR) as part of analyzing its supply chain environment, which would help in defining the situation based on the different stages. The SCOR model refers to a management tool that allows towards addressing, improving, and communicating the decisions occurring within a supply chain environment focusing on both suppliers and customers (Srivastava, 2007, p.61). The adoption of this model would mean that Mattel would be in a more valid position through which to minimize on the underlying challenges that it has faced concerning the production of products that do not meet the required standards. The following is an analysis of how the company would be able to use this model as part of its supply chain management approach.

Plan 

In this stage, Mattel may seek to come up with a structured communication approach aimed at balancing between the resources that the company intends to use and the expectations from clients within different consumer markets. Additionally, the company may also engage in this process to improve or measure its supply chain efficiency with the sole focus being towards maximizing on positive outcomes through its supply chain model.

Source 

In this stage, Mattel would be expected to embark on a process of sourcing for the materials that it intends to use as part of its manufacturing of toys. When sourcing for such material, the company would be able to determine whether indeed they match the required standards with the aim of avoiding possible recalls. The materials will be sourced from legitimate sellers, who will be expected to match the expectations for the company.

Make 

In this stage, Mattel would embark on a process of having to ensure that the manufacturers that it engages can make-to-order. In other words, this means that the company would be expected to evaluate the companies that it involves with as a way of determining whether it is in a position that would guarantee quality production of toys that are distributed to different parts of the world.

Deliver 

In this stage, Mattel would be expected to engage logistics and warehousing as key expectations towards ensuring that it delivers on the orders made by customers. Storage will help ensure that the products manufacturers are stored before the actual process of delivery to the customers within different consumer markets (Seuring, 2013, p.1517). For Mattel, this would mean that the company would be in a better position from which to avoid possible challenges surrounding delivery of quality products matching customer demands.

Return 

The last stage would involve a process of having to come up with a strategy on how to handle returns that are likely to come about if some of the products do not match customer demands. As can be seen in the case, Mattel was involved in notable recalls of approximately 19 million toys in 2007, which creates the need for having to examine how the company anticipates handling the returns. The projected outcome is that this would seek to create a somewhat effective avenue through which to maximize the provision of quality with the sole intention of meeting the expected demands from customers.

(b) 

The following is an analysis of the FIVE major factors that Mattel ought to consider as part of analyzing its strategic supply chain action plan to help meet positive outcomes in the delivery of quality products matching consumer demands.

Demand and business operating model 

The first key factor that the company ought to consider is the demand projected by its customers, which would serve as a critical outcome towards defining the strategic approaches taken as part of the action plan. By evaluating demand, Mattel would be in a better position through which to determine some of the critical aspects of consideration in its supply chain as a way of ensuring that it can meet the set-out demands.

Supply Chain Metrics 

The crucial second factor of consideration is the supply chain metrics, which would seek to determine critical outcomes associated with the supply chain process while reflecting on possible issues in building the expected standards. The parameters will also help in identifying the inventory and data captured by the company as part of its strategic approach towards enhancing its capacity to deliver on positive results.

Inventory and Electronic Data Capture Percentage 

The use of electronic data is seen as one of the critical approaches that determine the supply chain action plan put in place within a given company or organization (Melo, Nickel, and Saldanha-Da-Gama, 2009, p.408). In the case of Mattel, the percentage of electronic data captured ought to serve as a critical outcome in determining the action plan that the company is expected to put in place. However, it is equally essential for the company to focus much of its efforts towards capturing as much data as possible with the sole intention of creating a proactive avenue through which to maximize on the quality of decisions that it would make as part of its action plan.

Industry Standards 

The other key factor that Mattel ought to consider as part of its supply chain action plan is the industry standards, as these standards will act as a determinant of whether the approaches put in place are sufficient to meet set out expectations by the customers. The consideration of industry standards will also seek to determine how the company is expected to operate regarding its supply chain strategy.

Social Supply Chains 

When developing the supply chain action plan, one of the critical factors to consider is the social supply chains, which are expected to advance overall capacities for a company to deliver on its set out objectives in the supply chain management process. Social supply chains will help in establishing a clear framework through which the company would be able to define positive transformation as part of its supply chain processes (Van Wassenhove, 2006, p.461).

Question 2 

Being the world's largest branded toy manufacturer, the company experiences forces that drive towards change for globalization. The driving force toward change plays a vital role in ensuring that the company is in a position to engage in global operations effectively. Considering that globalization is inevitable, it is essential for companies to capitalize on changes that may help in accommodating aspects that concern globalization. The adoption change in an organization helps to provide an avenue for the business to engage in new processes that aim at promoting growth and development of the business. The drivers of change assist in providing a channel for the business to operate effectively on the international market, which is a factor that helps in enhancing operations. Based on Mattel's supply chain, there are some drivers for change for globalization, which are significant in improving strategic services within the company.

Technology 

Considering that the company focuses on engaging in a wide range of innovations to promote creativity that involves manufacturing branded toys, technology is an essential factor that helps in enhancing the given operations. According to Gunasekaran and Kobu (2007, p.2826), technology plays a critical role in setting the foundations for globalization thus this is an essential factor that allows companies to capitalize on changes that helps towards technological innovations. Additionally, the need to implement technology in various processes such as testing and inspecting the toys is a primary technical driver for change in the company, which is an element that helps towards globalization.

Market 

A market of products is a significant aspect that helps in defining the growth of a product within a given industry. The level of a product in the market helps in forecasting the performance of a given product thus providing insights on areas that require the implementation of appropriate measures of change with the aim of promoting a product. According to Bichou and Gray (2004, p.53), the saturation of domestic markets limits the growth and expansion of companies thus leading to the need to adopt changes that may help in venturing in global markets. In the case of Mattel, the company has capitalized on the implementation of key strategies that have helped in increasing the market share by making sustainable product design and development. The Company's market has experienced saturation, which has led to a reduction of opportunity for growth.

Competition 

Competition in a business environment is a crucial aspect of consideration; thus, it is a significant supply chain driver towards change for globalization. Based on Mattel's supply chain, the company experiences competition that influences the nature of operations considering that the company requires to engage in activities that may help in overcoming the competitors by winning a greater market share. The increase in competition within the global market creates the need for developing effective strategies for growth and development.

Cost 

The increasing costs of sourcing materials for the company contributed to the need for building a global scale economy, which is a significant aspect of change towards globalization (Angeles, 2005, p.58). Considering that the cost of sourcing materials in the company varies in different countries, the company took the initiative to engage in global scale economies to subsidize on the high cost associated with product development within the company. The process related to incurring expenses related to production and manufacture of products contributes to the need for adoption of various changes to focus on globalization.

Commoditization 

Commoditization of products in a company is an important aspect that is crucial in providing various insights that concern the fundamental dynamics presented within the market. In the given company, the issue of commoditization helped in determining the economic value of the manufactured products, thus creating the need to venture in strategies to capitalize on the production of products that suits the needs of consumers within any given market (Tako and Robinson, 2012, p.808).

Inventory 

According to Mentzer, Stank, and Esper (2008, p.36), companies required to capitalize on the establishment of simple inventory procedures that help in promoting proper inventory management. The nature of inventory that is present within any given company helps in defining inventory processes that would be relevant to enhance inventory management. In this case, the company focused on establishing changes that would assist in ensuring that the company is in a position to deal with different processes that concerns inventory management when dealing with local and international markets.

Transportation 

Transport and distribution of products within a company is a significant supply chain driver for change and globalization considering that a company requires to establish measures that capitalize on enhancing transportation of products to the consumers. Considering Mattel's supply chain, transportation of products to the consumers is an important aspect considering that the company has both domestic and international customers. In this case, the company requires to engage in measures that result in changes concerning the issue of distributing and transporting products to the customers.

Information 

The company relies on various sources of information to obtain critical information that is necessary for the growth and development of the company. The company engages in research with the aim of getting information concerning the potential and current customers within the market to understand their needs. Information acts a primary supply chain driver considering that knowledge may contribute to adopting various changes for globalization to engage with the international market (Power, 2005, p.259).

Sourcing 

Sourcing of products within a market helps in defining the nature of processes that may be involved in making final products within a company. In the case of Mattel, the company focuses on sourcing their products from different parts of the world. Thus the need to develop proper measures that concern engaging in the sourcing process. The supply chain driver allows the company to establish strategic changes that are relevant in dealing with the sourcing processes within the company.

Pricing 

The pricing strategies adopted by different companies depending on various factors such as location, nature, and quality of products. Considering that the company deals with the international market, the issue of pricing is significant, as it requires the establishment of different strategies that are relevant in ensuring the company is in a position to deal with the problem in different parts of the world.

Question 3 

(a) 

Based on the approaches that Mattel has put in place to help in managing its supply chain, it is clear that the approaches are expected to have essential logistics management impacts, which are vital to consider as part of the supply chain management process. The first impact that the approaches would have is that they would help in reducing operational costs for Mattel in its bid towards advancing its capacity to meet set out standards. Cost reduction is one of the critical areas that a company ought to consider as part of its supply chain, as this would act as a determinant of the expected profit margins (Mentzer et al., 2001, p.18). In the case of Mattel, the approaches seek to work out an effective or structured avenue through which to minimize the costs associated with logistics as a way of matching overall demands.

The second logistics management impacts that the approaches taken by Mattel would have is that they would seek to optimize the supply chain management process with the specific focus being on promoting efficiency. When dealing with supply chain management, one of the critical areas to consider is the delivery of products to customers within different consumer markets. The expectation of this is that it will seek to create a well-structured approach through which to enhance the confidence that customers have concerning the supply chain approach. In the case of Mattel, the optimization of its supply chain process will be expected to focus more on trying to maximize the overall process of delivery. Additionally, the optimization will also seek to create a new approach through which to boost the confidence that customers have towards the company.

The third key aspect to note when focusing on the approaches taken by Mattel is that they would play a critical role in inventory reduction taking into account that they seek to ensure that the goods within the supply chain move within a limited timeline. The company, which will be the supplier, is expected to focus on reducing its inventory by establishing a clear framework through which to maximize its supply chain processes. The expectation of this is that it will help build that proactive avenue through which to ensure that the company can match its expected outcomes. The approaches, as have been identified in the case of Mattel, help in accelerating the flow of goods as part of its supply chain with the sole focus being towards building overall capacity to deliver on positive outcomes.

(b) 

By adopting “lean production and supply,” Mattel finds itself at a dilemma taking into account the benefits and problems that can be associated with this supply chain approach. The following is an analysis of the benefits and problems that can be expected when using “lean production and supply.”

Benefits 

The first notable benefit of lean production and supply is that it will help in defining the value of the product delivered with the sole expectation being towards ensuring that customers have a clear understanding of what the company seeks to deliver. Mattel would be able to define the value of its customers based on this supply management approach, which aims to change the way in which products move within the supply chain.

The second notable benefit of lean production and supply is that it will help in optimizing the flow of products within the supply chain as a way of enhancing overall capacities to match set out demands (Wang, Gunasekaran, Ngai, and Papadopoulos, 2016, p.106). Mattel finds itself in a position where it expects to maximize the flow of products as a way of ensuring that it delivers positive outcomes. Consequently, this acts as a guarantee that indeed the supply management approach would be considered as being sufficient to provide positive results.

The third notable benefit is that the lean production and supply will help in reducing costs for the company taking into account that it will help in reducing the costs of production and delivery. The approach is somewhat useful in ensuring that the company can build its capacity towards enhancing overall expectations in supply chain management.

The last notable benefit of lean production and supply is that it will help in establishing the demand among customers with the aim of creating an outcome in matching possible outcomes. Definition of demand is essential considering that it will seek to enhance overall capacity to map and promote perfection in the delivery of the same as a way of building overall outcomes.

Problems 

The first possible problem associated with lean production and supply is that it will result in a higher number of defects, which would have severe implications for the company's corporate image. Mattel seeks to create an approach that would ensure the quality of its products is advanced. However, this may not be the case when using lean production and supply, as this particular approach would have severe implications on the quality outcomes.

The second possible problem that the lean production and supply is likely to have on Mattel is that it will result in overproduction of the products that the company seeks to deliver. Overproduction will result in a severe increase in the inventory for the company, which would have grave implications for the company's profit margins.

The third possible problem that can be associated with lean production and supply is waiting, which would mean that the supply process may experience a severe backlog attributed to inappropriate processing. The expectation for Mattel is that it will be able to maximize on the product and supply processes by creating that proactive avenue through which to enhance overall capacity. However, it is clear that the primary challenge that the company ought to anticipate revolves around lean production and supply.

The fourth possible problem that is likely to arise as a result of lean production and supply is in the area of transport, which would result in a severe delay in the supply chain process. Lean manufacturing and supply do not take into account the transportation of the products produced; thus, creating a situation where the company is likely to experience severe impacts on its profit margins.

Question 4 

The use of outsourcing mapping system by Mattel is likely to have potential benefits and problems, which are essential to consider while trying to create the expected supply chain strategy. The following is an in-depth analysis of the potential benefits and issues that can be associated with the outsourcing mapping system.

Benefits of Outsourcing Mapping System 

The adoption of outsourcing mapping system is expected to increase efficiency in supply chain management considering that it helps in mapping out the supply chain locations that the company ought to consider as part of its supply chain approaches. When focusing on supply chain management, one of the critical factors that must be considered is the level of efficiency that is created based on the approach selected (Hazen, Boone, Ezell, and Jones-Farmer, 2014, p.75). In this case, it is clear that the outsourcing mapping system is much more likely to enhance efficiency in meeting the set out strategic goals and objectives.

The second benefit associated with the use of the outsourcing mapping system is that helps in creating a global reach considering that it becomes much easier to create a supply chain map. Having a more significant reach means that a company would be in a somewhat active position through which to achieve positive results in its supply chain processing. In this case, one of the key aspects to note is that the mapping system created seeks to create an advanced avenue for ensuring that Mattel can increase its capabilities and facilities with the sole expectation being towards building overall capacity.

The third notable benefit associated with the outsourcing mapping system is that it helps in reducing costs related to supply chain management for the company as one of the ways through which to meet prospective results. Costing is one of the notable aspects of consideration when defining the supply chain approach selected within a given company (Larson and Halldorsson, 2004, p.26). When dealing with outsourcing mapping system, the cost is expected to reduce significantly considering that the company is anticipated to focus much of its attention on the map, which will help provide a somewhat proactive strategic outcome in supply chain mapping.

The fourth benefit of outsourcing mapping system is that it will help in creating a more significant competitive advantage with the sole focus being towards leveraging the information that can be found within the map to achieve better flow. The mapping system will not only provide a map of the areas that the company is expected to engage in supply but will also focus on providing information on the customers within these locations (EEE). Consequently, this means that the company will be in a better position through which to achieve positive outcomes and results as it seeks to advance its capacity towards improving the supply chain process.

The last benefit of the use of the outsourcing mapping system is that it will help in ensuring that the company is well positioned towards improving its focus on the core business activities. That means that the company will be in a better position within which to focus on improving the quality of products that it seeks to deliver while leveraging on the mapping system for purposes of delivery. The ultimate result is that the approach will help strengthen capacity for the company to provide positive results while ensuring that it builds on its ability to achieve positive outcomes.

The problem of Outsourcing Mapping System 

On the other hand, it is equally important to take note of the issues that arise when using the outsourcing mapping system as part of the supply chain management approach. The crucial first problem that would occur when using this system revolves around a lack of flexibility in the supply chain process. When using this system, the company may find itself in a situation where it would lack the flexibility that would guarantee efficiency regarding its set out outcomes. Instead, this system seeks to ensure that the company uses a defined approach in the supply chain processes. From that perspective, it is clear that the company is likely to encounter a wide array of challenges that would have severe implications in the expected outcomes occurring within the supply chain approaches.

The second fundamental problem that ought to be considered when using the outsourcing mapping system is confidentiality and security of customer information, which is an area that the company is expected to focus on as part of its expectations in production and supply. The outsourcing mapping system will be expected to use customer data and information, which would be of great value towards creating a positive approach through which to enhance overall capacities to achieve positive outcomes. However, the security of such data and information may act as a significant challenge for the company considering that third parties are much more likely to gain access to such information. For the customers, this would have serious implications considering that some of the info portends to their finances, which must be kept private and confidential based on financial implications.

The third fundamental problem that must be considered when using the outsourcing mapping system revolves around possible instabilities in the system, which may result in undesirable results in the supply chain process. The outsourcing mapping system is a technological system that seeks to ensure that the company is well positioned towards mapping out its supply chain processes (Carter and Rogers, 2008, p.373). The method may experience instability focusing on issues of failure, which may have severe outcomes for the company considering that it focuses much of its efforts towards using the mapping system. The stability of the system is not guaranteed to mean that Mattel is likely to encounter instances where the supply chain process is disrupted as a result of the failure in the system. When deciding on whether to use this system for purposes of supply chain management, the company ought to consider the possible backgrounds if it experiences instabilities.

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