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Where is Lego made for each market and how is it distributed?
I've pulled this idea from something that came up when discussing EOL dates in this thread:
http://www.bricksetforum.com/discussion/7185/flumpys-insight-into-sets-eol-in-2012-and-those-staying-on-for-2013#latestThe production and distribution is of particular interest regarding EOL dates as different factories might cease production earlier, and because I'm guessing that the only 'fixed' EOL date is the date when production stops (beyond that it's about depleting the stockpile).
According to Wikipedia there are 3 factories:
- Billund, Denmark
- Nyíregyháza, Hungary
- Monterrey, Mexico.
Although as we know there is one in "Asia" :)
Apparently "Brick decorations and packaging" are done at all these locations plus
- Kladno in the Czech Republic.
So does anyone know how Lego distributes stock from each of its factories?
For example does the European stock generally originate from the EU factories and the North Mexican stock from the Mexico factory?
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My last one has this tracking information:
Event Date Event Time Event Detail Event City
10/22/2012 13:23 Delivered
10/22/2012 08:17 Pre-Scan for Delivery
10/20/2012 05:26 Received from Partner Carrier
10/19/2012 23:25 In Sorting Facility
10/19/2012 23:08 In Sorting Facility
10/19/2012 15:05 Departed Terminal Location
10/18/2012 04:49 Shipment Tendered ,
10/18/2012 04:49 Picked Up Strykow
There is no indication on the packing slip where it came from, but the online tracking says it is Poland.
After the big investment in expanding production capacity in Monterrey last year, Lego have done the same with Kladno this year, again reinvesting a lot of their profits back into the company's infrastructure.
You hear the same story regardless of industry, biotech (my case), electronics, toys, etc. Its a cultural issue where acts deemed 'wrong' or 'competitively unfair' are justifiable to the common citizen or business manager. TLG needs to take their business to partners that play fairly and not abuse their IP with piracy. Its common sense after you take the 'cost savings' issue out of the picture. This is first hand experience as my previous company was Chinese managed with secret facilities in Shanghai that exported the product to the US office for QC testing and released as USA made goods. Couldn't bare their clandestine methods very long before leaving to a European-based team, where everything is on the up & up with a value placed on ethics. The difference is like night and day.
Back on topic, my understanding of LEGO production is that making bricks is a slightly separate affair from making sets. Seems to me your bricks might be made in several places and then put into a set at only one site.
Every year or two there's a crazy story. The sad part is people die in certain cases before its discovered, as in this first link. Second link is Chinese management ethics at play in the US in my specific field.
http://www.prnewswire.com/news-releases/nolan-law-group-jury-finds-against-baxter-healthcare-in-nations-first-contaminated-chinese-heparin-case-123577429.html
http://www.lawfuel.com/show-release.asp?ID=5582
When this type of thinking is widespread and entrenched, you're playing with fire when you outsource IP and capabilities. TLG is finding that out with all those fake Ninjago sets floating into the market, not too mention the proliferation of clone companies that recreate older EOL sets. Santa 'Frisco' Fe Train anyone?:
http://www.ebay.com/itm/629-Enlighten-Building-Blocks-Train-city-Toy-Heavy-Duty-Freight-Locomotive-378P-/221050822003?pt=Building_Toys_US&hash=item3377a7dd73
Especially at an economic time like this, outsourcing is despicable. I will show faith TLG will come around soon.
http://www.ebay.co.uk/sch/Toys-Games-/220/i.html?_sac=1&clk_rvr_id=402615803091&_from=R40&_nkw=enlighten
I don't consider Denmark made bricks to be outsourcing because Denmark is a 1st world nation with rights and respect for people. It doesn't hurt my feelings one bit to buy LEGO made in Denmark.
It should NOT be made in China... Even Mexico is questionable, but I understand that one, the Mexicans can be reasoned with at least.
No disrespect intended for actual Chinese people, many of whom are perfectly nice hard working people, my feelings are directed at their government.
China is notorious in today's manufacturing for being able do to stuff cheaper and faster mainly due to inferior materials quality and the poor practices of the country in terms of labor laws/protection. I think a lot of the electronics outsourcing ends up being "cheaper" overall in China due to them controlling something like 99% of the worlds rare earths which a lot of are used in electronics.
http://www.bricksetforum.com/discussion/545/production-info
From the LEGO Ambassador forums:
Is that why LEGO is so expensive and its prices keep rising?
My guess is the new 2013 station will be around $85, which would mean real prices are about stable. We'll get a better idea when the actual piece count and price comes in.
But I agree, it is admirable that TLG has kept a lot of its manufacturing onshore.
Cafe Corner in 2007 would set you back $140. But in 2012 dollars that is really $156.24 for 2056 pieces, or 7.599 cents per piece. Fire Brigade in 2009 would set you back $150. But in 2012 dollars that is really $161.80 for 2231 pieces, or 7.254 cents per piece. In 2012 you can buy Town Hall. It would be $199.99 for 2766 pieces, or 7.230 cents per piece.
So we went from $140 to $200 nominally for each set, but from 7.6 to 7.2 cents per piece in real dollars.
Of course, the US Government keeps saying there is little to no inflation, but who are they kidding?
“It is well enough that people of the nation do not understand our banking and money system, for if they did, I believe there would be a revolution before tomorrow morning.” Henry Ford
The entire thing is a game, just a big game with large numbers... So long as everyone believes in the system, it works. If that ever changes... Well, ouch. :)
@LegoFanTexas Ah, I see you are a fan of game theory! You're absolutely right, our monetary system is a form of coordination game with large numbers of actors involved. Thankfully, since we're able to have plenty of communication and signalling mechanisms about this, we're able to maintain the current Nash equilibrium. No need to worry about the system failing because of lack of belief!
The system does work, but I also believe it works best with ongoing light inflation. Being predictiable is almost more important than anything else in such a game, what you don't want is a repeat of the 70s-80s stagflation, that was painful. A slow and steady rise in prices over time that everyone can just count on, makes it a safer game for all I think.
Hard to plan 20 years out when inflation is swinging wildly. This I think is also one of the problems our current government has, they don't plan long term, all their decisions are made year to year. Part of that is because of the constitution, it has rules about budgeting for more than a year at a time. Part of it is due to election cycles.
It would be interesting, given modern communications and technology, to allow our government to produce 10 year and 20 year budgets instead of 1 year budgets, with 50 and 100 year projections based on the 10 and 20 year budgets.
It would induce more long term thinking if nothing else.