Mattel 2001 Annual Report Download - page 8

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capacity, improve our gross margin and
lower overhead costs. We have reduced
the workforce at our Mattel corporate
locations by seven percent, and our
investments in information systems and
technology will help us better manage the
business, with lower costs in procurement,
finance, distribution
and manufacturing.
3.
Improve supply
chain performance
and customer service levels.
We have
become one of the industry’s leaders in
customer service. And while there always
is work to be done when it comes to cus-
tomer service, we also are focusing on
improving supply chain efficiencies.
For example, we will launch fewer new
SKUs this year by taking advantage of
multi-lingual packaging, providing us with
increased distribution options for any given
toy. We have implemented a company-
wide initiative to better align shipments
with consumer demand by contracting the
time it takes for us to manufacture and dis-
tribute toys. While our new program will
reduce first-half revenues, there will be tan-
gible benefits in terms of lower shipping
and promotional costs, as well as strength-
ening our partnerships with retailers as
they continue to focus on just-in-
time inventory management.
4.
Develop our people and
improve our employee develop-
ment processes.
In 2002, advanced leader-
ship and global leadership classes will be
added to our training curriculum, and a
new innovation platform will be offered to
product designers to further hone their
creativity. E-learning initiatives will be
expanded, allowing more employees the
power to develop their
skills at their own individ-
ual pace.
Mattel’s vision is to create
and market “the world’s premier toy brands
for today and tomorrow.” In the past two
years, we have refocused the company on
its core business – toys, and its core com-
petency – building brands. We have
reduced costs and developed our people.
We have begun to optimize our product
portfolio and business systems. And most
importantly, we have tasted success – and
we hunger for more.
On behalf of my 27,000 colleagues around
the world, thank you for investing in our
business – and in us.
Sincerely,
“the world’s premier toy
brands for today and
tomorrow”
Robert A. Eckert
Chairman of the Board and
Chief Executive Officer
6