Exploding Kittens, a popular card and board game maker, discusses navigating severe supply chain disruptions and over-reliance on Chinese manufacturing. This episode offers valuable lessons on mitigating risks through diversification and alternative logistics, providing actionable strategies for any ecommerce brand facing similar global supply chain challenges.
Key takeaways
Diversify manufacturing beyond a single region, even if it means sacrificing some initial efficiencies. Exploding Kittens is exploring Mexico and Poland to reduce dependence on China.
Investigate alternative import ports and trucking routes to bypass congested hubs. Exploding Kittens is looking into Seattle, Washington, as an alternative to California ports.
Factor in extended manufacturing timetables and potential bottlenecks when planning your production and distribution, as these can double lead times.
Assess the trade-offs between cost, efficiency, and supply chain resilience. While China offers efficiency, the current landscape necessitates a re-evaluation of single-source strategies.
Proactively address potential domestic logistics issues, such as warehouse closures, which can be as disruptive as international manufacturing delays.
International manufacturing continues to create headaches for American brands. For card and board game maker Exploding Kittens, producing the majority of its products in China has had a domino effect on its overall distribution process. “We’ve had challenges for two years now,” Carly McGinnis, head of production, sales and logistics at Exploding Kittens, said on the Modern Retail Podcast. That’s mainly because “about 90 to 95% of all of our goods are produced in China,” she said.
In 2020, Exploding Kittens’ initial challenges were not so much with production or freight coming out of China -- but more so with shuttered warehouses domestically. This year, like many others, Exploding Kittens’ logistics team is dealing with double the manufacturing timetables, as well as bottlenecks at California’s ports. The company has experimented with manufacturing in other places over the years. “We’ve produced things in Poland in the past, but China just offers efficiency, quality materials and speed to market like no other location worldwide for us,” said McGinnis. “So we’ve been tremendously reliant on China since the beginning of the company.” Still, the accumulating issues have led the company, which launched in 2009, to look for production facilities outside of China -- starting with Mexico and Poland. Furthermore, it’s exploring more trucking routes from alternative import ports, like Seattle, Washington. While these alternatives have their own downsides, McGinnis said it’s important to continue diversifying away from a rigid supply chain. This conversation is part of a series, called Chain Reactions, in which Modern Retail explores the quick and long-term fixes brands are making to minimize their supply chain woes.
What does this episode say about supply chain & operations?
Diversify manufacturing beyond a single region, even if it means sacrificing some initial efficiencies. Exploding Kittens is exploring Mexico and Poland to reduce dependence on China.
What does this episode say about founder & leadership?
Investigate alternative import ports and trucking routes to bypass congested hubs. Exploding Kittens is looking into Seattle, Washington, as an alternative to California ports.
What does this episode say about retail & omnichannel?
Factor in extended manufacturing timetables and potential bottlenecks when planning your production and distribution, as these can double lead times.
What does this episode say about supply chain & operations?
Assess the trade-offs between cost, efficiency, and supply chain resilience. While China offers efficiency, the current landscape necessitates a re-evaluation of single-source strategies.
What does this episode say about supply chain & operations?
Proactively address potential domestic logistics issues, such as warehouse closures, which can be as disruptive as international manufacturing delays.
