Subject:
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Re: Lego changes CEO after new losses
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Newsgroups:
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lugnet.lego
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Date:
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Thu, 21 Oct 2004 17:59:48 GMT
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Viewed:
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5567 times
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In lugnet.lego, Larry Pieniazek wrote:
> As I have opined many many times here and elsewhere, supply chain management,
> product lifecycle management, accurate and geography specific demand
> forecasting, and nimble reaction to changes in demand are absolutely vital in
> todays day and age.
Absolutely agree.
> I'd opine that LEGO *still* doesn't have this right. Third supply chain VP in a
> year, acknowledgement of supply chain problems, acknowledgement of overcapacity
> coupled with inability to meet demand... not good. Lots of room for improvement.
I'm not sure how much of the problem is a 'TLC supply chain issue' tho. Perhaps
it is in EU where the supplier is more closely coupled with the retail outlets.
On this side of the pond I have seen much LEGO product that a particular
ratailer could have sold (at full retail) had they merely market shifted it to a
different market where it would sell better. Perhaps that would actually cost
more than just clearancing it where it sits. If anything, retailers (like WM
mentioned below) should perhaps keep more of the product warehoused and dispatch
it to the stores more quickly as it sells-through in the store. I think that is
some of what the article (mentioned below) alludes to. The existing model seems
to be a 'high speed dispatch' from Enfield to the retailers warehouses to the
actual stores (where it gets effectively warehoused until finally disposed of).
In the case of TRU, they will shift stuff from one store to another (typically
at a customer's request), but the logistics causes the transfer to take anywhere
from 6-10 weeks (which is not acceptable for most customers).
> Consider this from a recent Information Week:
>
> (it's a long article about various Walmart IT initiatives, a really good read if
> you care about this stuff even if IW is a free magazine)
>
> http://www.informationweek.com/story/showArticle.jhtml?articleID=47902662
Yes, most interesting article. I read that when it was /.'ed a week or two back.
Ray
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Message has 1 Reply:
 | | Re: Lego changes CEO after new losses
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| Much snippage. And I mostly agree with Ray... (...) Supply chains stretch in both directions from a firm, both upstream and down. TLC's upstream supply chain presumably delivers stuff like raw pellets (in various colors), printed boxes and (...) (20 years ago, 21-Oct-04, to lugnet.lego)
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Message is in Reply To:
| | Re: Lego changes CEO after new losses
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| (...) But does he LIKE the product, or is this just a job for him? Ditto the CFO... I have opined in the past that I wonder how many Danes view working at LEGO as just another job rather than as a passion.... Also, I have to say I was puzzled by (...) (20 years ago, 21-Oct-04, to lugnet.lego, lugnet.general)
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