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Executive Summary The objective of this report is to recommend a sourcing strategy to Spin Master Toys for their E- Chargers toy airplane and mitigate the risk of missing crucial deadlines. Based on our analysis we recognize that going with either Wai Lung or Wah Shing presents too much of a risk to ensure on time delivery. In order to reduce the risks associated with each individual manufacturer, we recommend that Spin Master Toys resort to a hybrid manufacturing model that utilizes the strengths of both the shortlisted companies. We propose that Spin Master Toys Source the electronic components directly from Wah Shing – Wah Shing already has expertise designing similar electronic components. We feel that they’ll be able to respond better to an urgent need. Source the plastic injection molding and other components from Wai Lung – Wai Lung has done plastic injection molding in previous projects and we feel they’d be able to meet expectations. Contract with Wai Lung to do the final assembly – Wai Lung being a private company would give the project adequate personal attention that we feel is vital to meet deadlines. Temporarily relocate Alex to the Hong Kong office to work with the two project managers in addressing supply chain coordination – Having multiple companies involved in this project necessitates that Spin Master have complete visibility into all aspects of the process. B. Background Spin Master Toys needs to design a plan to source the production of their E-Chargers toy airplane subject to significant time, competency and capability constraints of manufacturers over in China. It is critical for Spin Master to meet the delivery date deadline since retailers have placed endcap orders for the spring planogram shelving period. Missing the deadline would result in a loss of guaranteed shelf space, and trust from retailers, which could lead to loss of future orders. Spin Master has narrowed the sourcing decision to two companies - Wai Lung and Wah Shing. Both companies present unique pros and cons for the project. Wai Lung is a privately held company that would be able to devote more personal attention to the project, but their expertise in electronics is suspect. Wah Shing has more expertise in electronics, however, it is a public corporation running at near capacity and may not be able to give adequate attention. The project is already running late and the tight weight tolerance required by the toy adds to the problems. It is necessary to come up with a manufacturing plan that would deliver a quality product to the retailers by the delivery date. Anything short in either quality or timing would result in major financial loss for Spin Master. Spin Master Case Report
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