Unsafe for Children - Mattel’s Toy Recalls and Supply Chain Management

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3.) What actions taken by whom to deal with the real problems? Do you thinks these actions were the right one? Why or Why not?

Answer: In early July 2007, one of the Mattel’s European retailer discovered excessive lead on some of the company’s toys. It convinced that recall is necessary. In August Mattel announced voluntary recall of 83 Fisher-price products sold from May 1 to August 1, 2007. The recall involve about 1.5 million toys worldwide. After first recall Mattel announced voluntary second recall for toys with excessive lead content. The recall involved 460,000 toys worldwide. After the second recall Mattel announced to recall the Sarge toy cars, an expansion of earlier recall due to small magnets. It recalled 18.2 million toys worldwide. According to opinion, the action by the Mattel were absolutely right. Mattel has been criticized heavily for having to recall not once but twice in as many weeks 20 million toys manufactured in China with lead paint and/or loose, potentially dangerous magnets. Clearly Mattel did not have sufficiently tight quality control procedures in its supply chain to compensate for the extra risks of outsourcing to relatively new Chinese subcontractors.

4.) What should Mattel do now? What should China do now?

Answer: Mattel has faced a series of difficult and potentially crippling challenges, including the lawsuits. Mattel should work hard to restoring goodwill and faith in its brands, even as it continues to be plagued with residual distrust over the lead paint scandal. Mattel should upgrade its safety standards and quality control. Mattel should be careful for approaching international supply chain management strategies. The “ made of China” brand was in real danger. At that point China needed to prove that they could produce products to the quality and safety standards expected by the rest of the world. China should ask companies to hire full time inspection staff and allow their customers to inspect their plants. China should enforce quality licensing system for product exports. China was fighting with the brand image in the international market.

5.) How can accountability be increased and better managed when production is moved overseas to other forms in the supply chain?

Answer: There are many criticisms levelled at multinational organizations for choosing to relocate their manufacturing operations from domestic markets in developed countries many thousands of miles away. Suspicion is often focused on cheap labor and possibly lower or less enforced health, safety and environmental legislation all contributing to lower production costs. But to increase accountability and better production management at overseas the company needs to have law inventories flexible manufacturing.