How does Lionel work?

@raising4daughters posted:

I don't pretend to know the supply chain and logistics challenges of the model train industry, but I have wondered if the manufacturers/importers could find a way to have components made overseas and shipped to the US and have assembly/distribution shops closer to customers who then final assemble, decorate,  inspect/test, and ship the final product. 

I think the costs, or maybe the perceived costs, are what stops this from happening. 

I get boards from overseas, and I do what you say, I perform the final inspection and also test and program each board before they're packed for shipment.  However, I can imagine that "decorating" them, implying doing the painting and lettering, is somewhat labor intensive.  Also, for stuff like locomotives, the painting and lettering happens before the assembly.

@raising4daughters posted:

I don't pretend to know the supply chain and logistics challenges of the model train industry, but I have wondered if the manufacturers/importers could find a way to have components made overseas and shipped to the US and have assembly/distribution shops closer to customers who then final assemble, decorate,  inspect/test, and ship the final product. 

@MELGAR posted:

That is something I would really like to see.

MELGAR

Lionel does that with LionScale.  The trucks still come from China.

Interestingly, American Models (S Scale) does something similar on products with complicated paint schemes.

The shells and drive trains were made here.  The shells were sent to China for decoration then the final locomotive was assembled here.

Rusty

@Craignor posted:

Lionel has been operating in this fashion for 120 years.

 

Not to my knowledge. Lionel didn't start built to order until after it moved overseas. Lionel use to produce and send to dealerships/stores from there U.S factories. And it was not built to order. 

It just reaffirms that old axiom...There's no guarantees in life except death and taxes! 

ADD :  +  Shipping/Handling