JelZe GoldRabbit wrote:It Is Him wrote:Stormrider wrote:Can someone explain how distribution works and fails? I don't understand how some toys come up extremely short in the U.S. markets, especially since Hasbro is HQ in the U.S and the U.S. makes up their largest market share for their line.
I would imagine that the marketing teams are coming up with manufacturing numbers during the planning phase, so how do they fall short?
I have a pretty laymen's understanding off the supply chain (someone with some expertise feel free to correct any of this) A simple version of the supply chain is
Manufacturer (Hasbro) ---> Distribution Center ----> Retail (Toys 'R Us)
Toys get shipped by Hasbro to Distribution Centers, which then get shipped to Retail Stores.
There's a lot of reasons why supply could get out of whack, but primarily it comes down communication and expected sales.
If Target says they need 10,000 Generation Deluxe cases, but Hasbro sends 12,000, you're going to have 2,000 sitting in a Distribution Center somewhere, which might later end up at discount stores like Tuesday Morning or Ross. There are other variables to this situation, like retail ordering more than Hasbro can provide, etc.
I think you're missing an important link here: the retail chain's warehouses. I know of at least one for my local stores in the (not-so) immediate area.
Ah yes. Most big box retailers have those. I believe that Walmart is the only one that doesn't.