Supply Chain Analysis of Nintendo

Nintendo is a video game manufacturing Japanese multinational company. Fusajiro Yamauchi founded the toys and gaming company in 1889. Today, we’ll discuss the supply chain analysis of Nintendo; it focuses on various SCM elements like procurement planning, inventory management, warehousing, automation, transportation, and distribution.

Supply Chain Analysis of Nintendo

Let’s discuss the main elements of the supply chain analysis of Nintendo are as follows;

Procurement

Nintendo procures materials and supplies for the production and manufacturing of gaming systems. The company buys gaming supplies and parts from across the globe; the procurement policy of the company comprises of following elements;

• Compliance with responsible sourcing of minerals, parts, and components
• Building a trusting relationship with the suppliers and satisfying the corporate social responsibility through procurement
• Buying products at the market competitive price from the manufacturing partners at the right delivery time
• Complying with human rights, globally recognized procuring standards, social and environmental laws
• Offering equal opportunity to all the procuring suppliers and partners in Japan and worldwide

Suppliers Selection

Nintendo has a very large supplier network in various countries across the globe. The video gaming brand carefully evaluates the suppliers and partners; the supplier selection criteria of the company comprises of following elements;

• Compliance with social responsibility standards, human rights standards, and environmental standards
• Connecting and engaging with solid business operations
• Satisfying quality, time, and pricing standards and requirements
• Ensuring their capability to provide a smooth supply of material, parts, and components without any disruptions
• Analyzing their advanced technological capabilities to meet the company’s quality standards and requirements
• Strong information management system in place
• Capability of Resuming the supply of products and goods in the event of a disaster

Code of Conduct for Suppliers

Nintendo has set up a strict code of conduct for suppliers, vendors, and partners to ensure the smooth availability of raw supplies, materials, minerals, parts, and components. The supplier’s code of conduct the company focuses on the following areas;

• Respecting and complying with human rights standards
• Ensuring occupational health and safety standards and requirements
• Fair and ethical trade practices
• Maintaining global environmental sustainability regulations and laws
• Guaranteeing Quality assurance and product safety
• Completely analyzing the information and avoiding the disclosure of information to the public
• Developing crisis risk management system
• Contributing and investing back into the local community and engaging in social welfare projects

Production and Manufacturing

Nintendo has a very large network of production and manufacturing partners in various countries across the globe. They receive raw materials, minerals, parts, tools, components, and equipment from the company’s authorized suppliers and partners. However, the manufacturers perform various system production operations and functions in a unique method by employing advanced technological tools and equipment to produce the finished product of gaming systems and consoles.

ESA

Nintendo also develops video gaming programs and software for online video gaming on various devices. The company’s gaming developers send the gaming ESA (electronic software assembly) to Nintendo America’s developers. However, the objective of the ESA is to send data for content approval from the product testing department in America. They analyze various factors and indicators to ensure that the game satisfies all the quality requirements and standards.

Packaging

Nintendo only deals with three major suppliers and partners that develop customized packaging material for the brand. The customized packaging material comprises of a wide variety of boxes in different sizes, bags, and packages for multiple types of gaming product varieties with promotional material, limited addition, and special gifts. However, the customized packaging suppliers transform the packaging material of the company by employing unique artist work.

Logistics and Distribution

Nintendo employs various transportation and 3rdlogistics service providers for the transportation and distribution of products and gaming supplies. They play a key role in transporting raw supplies, parts, and components from the authorized suppliers to the manufacturers and production partners; and then delivering the finished gaming system to the retail stores and the end consumers. However, the worldwide distribution network helps the gaming brand to ensure the worldwide distribution of products to retail stores on time without any delays and disruption. Delayed deliveries would negatively impact the customer’s experience.

Responsible Sourcing and Procurement

Nintendo is highly careful and cautious about the responsible sourcing of materials and minerals like cobalt, gold, tungsten, tantalum, tin, and other materials. The company makes sure that its suppliers are sourcing and extracting the minerals and materials responsibly and ethically without employing child labor, forced labor, and environmentally sustainable laws, and regulations.

Conclusion: Nintendo Supply Chain Analysis | Nintendo Supply Chain Management

After an in-depth study of the supply chain analysis of Nintendo; we have realized that Nintendo is the world’s leading retail gaming equipment manufacturing brand. If you are learning about the Nintendo supply chain analysis; then you should keep in mind the abovementioned SCM elements; procurement, planning, transportation, automation, inventory management, and sortation.