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Goodkid Toy Importers

Autor:   •  July 31, 2018  •  Case Study  •  1,448 Words (6 Pages)  •  117 Views

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Table of Contents

Assumptions        2

Problem(s)        2

1.        Goodkid considering using Halifax as a port to import goods from Singapore.        2

2.        Company was dependent on a single consolidator located in Hong Kong        2

3.        Toy stores in the United States having to use U.S Atlantic Ports instead of their usual West Coast Ports.        3

Cause(s)        3

1.        Recent labour unrests        3

2.        Toy importers are using alternative ports to import their toys        3

3.        For U.S importers to ship to U.S Atlantic Ports, consolidation must be done in Singapore        3

Analysis        3

1.        Stick with what works in the interim        3

2.        Conduct a total cost of ownership analysis to import toys to Halifax        4

Solution        5

Short Term:        5

Long Term:        5

Appendices        7

1.        Appendix I – Goodkid Toy Importers Supply Chain Ma        8

2.        Appendix II – Distance from Vancouver to Winnipeg        9

3.        Appendix III – Distance from Halifax to Winnipeg        10

        10

Assumptions

  • All toy companies use the same methodology of consolidating shipments in Hong Kong
  • A container needs to be full before it is loaded onto the container ship
  • Goodkid manages the entire Supply Chain from manufacturer to brick and mortar
  • Labour unrest is not a strike – just lack of resources

Problem(s)

  1. Goodkid considering using Halifax as a port to import goods from Singapore.

The problem with trying to use Halifax as an import port that would receive goods from Singapore is controversial because:

  1. Goodkids has never exported out of Singapore
  2. They have no experience shipping to Halifax from Singapore
  3. There is no relationship built with consolidators in Singapore – if they choose to mirror the Hong Kong model
  4. Their manufacturers across Asia would have to ship to Singapore instead of Hong Kong – which could lead to additional costs (customs and logistics)
  5. No experience sending product via truck or rail from Halifax westward to their Winnipeg DC
  6. There is no representative of Goodkids in the market to ensure that shipments arrive and leave on time

Goodkid’s headquarter is based in Winnipeg, Manitoba. Most if not all their toys come from Asia which means that there had to be challenges with time zones, languages and culture differences.

  1. Company was dependent on a single consolidator located in Hong Kong

The toys both containing electrical components and those without were all consolidated in Hong Kong. Containers were only loaded once or twice a week then loaded onto a containership for transport via Ocean to Vancouver.

  1. Toy stores in the United States having to use U.S Atlantic Ports instead of their usual West Coast Ports.

Toy stores in the U.S have been imported their toys from Asia to West Coast Ports.

Cause(s)

  1. Recent labour unrests

Due to recent labour issues at the West Coast U.S ports, which caused considerable port congestions, a few toy importers had their shipments come through the U.S Atlantic Ports.

  1. Toy importers are using alternative ports to import their toys

Since toy importers in the U.S. have been using the U.S Atlantic Port instead of the West Coast ports, this has opened conversations within Goodkid’s management team to start looking into alternative ports in the east coast which would support and fulfill demand in key markets where sales were growing.

  1. For U.S importers to ship to U.S Atlantic Ports, consolidation must be done in Singapore

Since toy importers in the U.S. are keen on using the U.S Atlantic Port instead of the West Coast ports, this has shifted where they need to consolidate toys. Instead of consolidation in Hong Kong they need to now consolidate in Singapore.

Analysis

  1. Stick with what works in the interim

  • Currently Goodkid imports most of their toys to Vancouver, Canada. Only about ten percent of their toys come through the United States. This has not impacted their supply chain and its revenue streams; the main issue is how the labour unrests impacts the ten percent of revenue. As most U.S toys are using Atlantic ports instead. Goodkid should keep using the West Coast ports knowing that traffic and congestion would divert and increase at the U.S Atlantic ports.

PROS

CONS

  • No impact to business
  • Fulfill needs of current markets as well as growing ones.
  • Ten percent of revenue may be impacted due to labour unrests at U.S West Coast ports.
  • Lack of resources

  1. Conduct a total cost of ownership analysis to import toys to Halifax

The supply chain team would need to determine how much it would cost to ship all the toys to Singapore and then mirror the same process as the consolidator in Hong Kong. The team then would have to assess how they would arrange for the containers to travel from Halifax to their DC in Winnipeg.

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