Lego Transformation: Challenges and Strategies

This lecture delves into the challenges faced by the LEGO Group, such as financial troubles, over-diversification, and poor customer service, leading to the realization that their supply chain needed a complete overhaul. The instructor discusses the company's outdated supply chain, the impact of changing costs, and the need to align the supply chain with business strategy. The lecture also explores the three-level distribution center structure in Europe, the transformation challenge of transitioning to a one-level distribution network, and the strategic decisions and options available to LEGO in optimizing their supply chain operations.