Made in China
Companies that outsource production to cheap overseas labor markets put Americans at risk from dangerous imports. Outsourcing, especially the manufacturing of toys, has been incredibly profitable for Mattel and other companies. After two recalls, totaling $30 million, Mattel is attempting to salvage the reputation of its brand and regain control of its outsourced manufacturing.
Over the past five years, Mattel earned $2.3 billion selling toys, the majority of them made in China. The toy industry was one of the first to outsource its manufacturing to China and today 80 percent of America’s toys are made there.
There are serious questions about whether companies have outsourced safety in exchange for low labor costs, greater efficiency and profit. One supply chain consultant says, no matter who makes the toy, Mattel’s name is on the product and it’s responsible for safety. It’s incumbent on Mattel to understand not only what’s going on in that supplier’s factory as well as their supplier’s supplier’s factory. They have got to trace it all the way back and that’s a difficult thing to do. In the case toys, something went very wrong in the complex global production chain.
Deloitte Consulting has warned, “The search for cheaper labor, cheaper raw materials and cheaper transportation creates a perfect storm of risk not seen before in the history of commerce or humankind.”
Democratic Senator Richard Durbin says that: “Companies cannot outsource their responsibility to American consumers. When families walk into toy stores, they assume the product on the shelf, is safe.” Senator Durbin insists retailers and manufacturers should require third-party inspections before a toy even make it into the United States.
Mattel says it is working around the clock to improve its current system and is increasing unannounced random inspections of the vendors, who make its popular toy brands.
The Toy Industry Association claims that there’s no reason to believe that the toys on the shelves of American toy stores are not safe. However, critics say, if they are safe, then why are we recalling them? Consumer advocates say we have lost control of the supply chain and we are seeing the fallout from that.
Over the past five years, Mattel earned $2.3 billion selling toys, the majority of them made in China. The toy industry was one of the first to outsource its manufacturing to China and today 80 percent of America’s toys are made there.
There are serious questions about whether companies have outsourced safety in exchange for low labor costs, greater efficiency and profit. One supply chain consultant says, no matter who makes the toy, Mattel’s name is on the product and it’s responsible for safety. It’s incumbent on Mattel to understand not only what’s going on in that supplier’s factory as well as their supplier’s supplier’s factory. They have got to trace it all the way back and that’s a difficult thing to do. In the case toys, something went very wrong in the complex global production chain.
Deloitte Consulting has warned, “The search for cheaper labor, cheaper raw materials and cheaper transportation creates a perfect storm of risk not seen before in the history of commerce or humankind.”
Democratic Senator Richard Durbin says that: “Companies cannot outsource their responsibility to American consumers. When families walk into toy stores, they assume the product on the shelf, is safe.” Senator Durbin insists retailers and manufacturers should require third-party inspections before a toy even make it into the United States.
Mattel says it is working around the clock to improve its current system and is increasing unannounced random inspections of the vendors, who make its popular toy brands.
The Toy Industry Association claims that there’s no reason to believe that the toys on the shelves of American toy stores are not safe. However, critics say, if they are safe, then why are we recalling them? Consumer advocates say we have lost control of the supply chain and we are seeing the fallout from that.
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