Hornby fail to capitalise on Olympic merchandise

Toy maker Hornby has warned that it is unlikely to make a profit in 2012, according to a BBC business report.   One of the key reasons for this is that their supply chain broke down, due to their reliance on one key manufacturer in China, who made 75% of their products.  This manufacturer engaged in a plant rationalisation plan, which lead to them being unable to meet Hornby’s orders – so Hornby has switched to other suppliers in order to diversify their supply base. 

On top of this, the company won the contract to manufacture Olympic merchandise and toys, such as a Scaletrix type ‘velodrome’.  The sales of these products proved to be not as popular as forecast, so customers cancelled orders.

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This entry was posted in Chap 05 Supply chain, Sector: Manufacturing and tagged , , , . Bookmark the permalink.

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