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· Posted on
February 21, 2024

Brick by brick, Lego's profits double. Isn't that the saying?

While the whole world faced supply chain issues, Lego didn't.

What's the key learning?

  • Lego is the Danish toy company, worth around US$7 billion
  • Lego's reported a double in its earnings during the first six months of this year, and it's all thanks to their supply chain management
  • The location of Lego's distribution centres meant that they didn't face the same logistics issues (i.e. shipping and deliveries) as other companies during COVID.

Background: Lego (L-eh-go, L-ay-go...choice is yours), is the Danish toy company that manufactures those colour, interlocking plastic bricks that you can turn into whatever creation you like. 

What happened: The company is worth around US$7 billion, and it has around 700 stores across the world. Now, they have reported a double in its earnings in the first six months of this year.

What else: Thanks to its Star Wars building sets, model Colosseums and flower bouquets, Lego absolutely killed it. But the real MVP is some good ol' fashioned supply chain management.

So what's the key learning?

💡While the whole world faced supply chain issues, Lego didn't.  

💡In the early 2000s, Lego went through massive supply chain changes. They realised their biggest markets were in Europe and North America. So they plonked distribution centres close to Prague (for Europe customers) and Mexico (for North American customers).
💡This courageous move turned out to be a masterstroke. It meant that Lego didn't face the same logistics issues (i.e. shipping and deliveries) as other companies during COVID. And that's why Lego outpaced the toy industry in all major markets.

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