Michael Fisher, President, Grand Prix International Inc. (GPI), discusses logistics, sourcing, and fulfillment in this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!
The Toy Book: After years of disruption, how is the freight industry looking as we head into 2023?
Michael Fisher: On the positive side, freight prices are definitely dropping and congestion at the west coast ports is slowly starting to clear. However, strikes, protests, and work stoppages along the worldwide supply chain is of concern this year. For U.S. imports, we do expect to see overall better transit times.
TB: Last year, GPI launched a program aimed at helping new, diverse manufacturers fill mass-market purchase orders. How will that effort continue this year?
MF: We’ve been getting great feedback with our BIPOC- and women-owned inventory financing program. For the coming year, it’s all about communicating the program’s existence wherever we can. Our aim is to focus on industry events and with key influencers that we feel can help us spread the word about this program.
TB: What are the biggest challenges facing toy and game manufacturers in sourcing for their products this year?
MF: Without a doubt, inventory management and China’s response to Covid are two very big challenges when looking forward. Tighter inventory management is having impacts throughout the supply chain. Purchasing decisions are being made much later in the sourcing cycle, putting great pressure on product development decisions, manufacturing lead times, and advance planning with logistics. And China’s ongoing response to Covid weighs heavily on factory schedules, raw materials availability, and delivery of goods to ports. The whole system is stressed in China. We’re seeing a heightened interest in establishing manufacturing capacity in other countries where Covid is much less of a factor. For this reason, GPI has recently established manufacturing capacity in Vietnam.
TB: What trends are developing in the game space that the industry should pay attention to?
MF: Our focus is in the games category, and sustainability is a rapidly growing factor in our manufacturing. We’re focusing on working with Forest Stewardship Council (FSC)-certified materials, elimination of single-use packaging wherever possible, and sourcing alternative materials. We’re also seeing a trend toward more efficient packaging design, eliminating wasted space and materials in packaging. This helps greatly with cost efficiencies in manufacturing and shipping. It also provides retailers with a higher return on investment of shelf space.
TB: What are your overall predictions for the state of the toy industry this year?
MF: In general, we hear two words most frequently that define where our industry is heading: “cautious optimism.” It permeates decisions on product development (impacting how aggressively companies are adding new products to their line), sales and marketing strategies (where and how to invest more limited promotional dollars), manufacturing production quantities (producing only to committed order quantities), and logistics strategies (how to minimize freight costs).
A version of this Q&A was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
