Supply woes knock Hornby off track

Scotsman
1st April 2009
Victoria Thomson
" Hornby yesterday warned that its full-year profits were set to fall
by =A32 million because of supply chain problems.
The Scalextric and Airfix group said underlying pre-tax profits for
the year to 31 March could fall as low as =A36.2m, from =A38.4m a year
earlier.
Hornby suffered a =A32m sales hit as a result of delays in receiving
shipments amid restructuring at it principal supplier in China. "
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Chris
It's not the size of the dog in the fight but the size of fight in the
dog.
Reply to
Dragon Heart
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"Dragon Heart" wrote
by £2 million because of supply chain problems.
the year to 31 March could fall as low as £6.2m, from £8.4m a year earlier.
shipments amid restructuring at it principal supplier in China. "
Always a risk when you outsource your manufacturing - that and a significant loss of flexibility in production. For a fraction of the price Hornby paid for Corgi, they could have pruchased Sander Kan and been pretty much in control of their own production.
John.
Reply to
John Turner
I totally agree ........ but they could also have got into a bidding war with their rivals.
Also I feel their recent restructuring was totally dependant on having NO manufacturing facilities of their own.
Chris
Reply to
chris.brett58
I totally agree ........ but they could also have got into a bidding war with their rivals.
Also I feel their recent restructuring was totally dependant on having NO manufacturing facilities of their own.
Chris
Think thats very important so over the years they can move manufacturing to different countries. Also they may want to have more than one manufacturer.
cheers, Simon
Reply to
simon

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