Chairman and Chief Executive Officer S. Claus narrowly avoided an angry crowd gathered at the headquarters of Christmas Entertainments Inc following reports of a catastrophic failure in their Global Supply Chain. In what was seen as a deliberate leak to the press just days before the news of the appointment of Aptium Global Inc, Strategic Sourcing consultants, turned a dramatic decline in the company’s share price into the largest one day rise since the company went public in 2005.
Reports had been growing for the previous few weeks that there were problems at the normally secretive Christmas Entertainments, suppliers of presents to the nation’s children on December 25 each year, due to supply side disruptions and component cost increases from their Asian suppliers. In an unprecedented move Lisa Reisman, Joint Managing Director and Strategic Sourcing guru spoke from the beach to reporters from the Cayman Islands Scribbler where she was vacationing for the holiday period. “Normally client confidentiality prohibits us from going public in these situations but in this case the company has specifically asked us to reveal details of the work we have been doing over the last few months to illustrate that matters are under control. Changes in the Chinese VAT rebate structure back in the summer and rising metals costs have meant many of the company’s component suppliers have reneged on contracts causing severe problems in the supply chain. Following a thorough review we have instigated a policy of dual sourcing critical components, hedging against metal price fluctuations and outsourcing logistics to a 3PL, following the shipping delays in October caused by a severe bout of Reindeer Flu,” she said. Read more