LEGO Located Factories Close to Its Customers
9/15/20261 min read
LEGO, a Danish toy manufacturer, strategically locates its factories near customers rather than focusing solely on minimizing production costs.
The company currently distributes products to more than 140 countries and operates manufacturing facilities in Denmark, the Czech Republic, Hungary, Mexico, the United States, China, and Vietnam.
After implementing this strategy for over a decade, LEGO has experienced minimal supply chain disruptions and reduced production lead time to just a few weeks, enabling the company to swiftly adapt to changes in consumer demand.
*** Bibliography ***
· Brown, R. (2025, February 11). LEGO will be opening the doors of its new manufacturing factory in Vietnam soon, driving sustainability, innovation and creating new labour opportunities. Manufacturing Digital Magazine. https://manufacturingdigital.com/articles/lego-new-manufacturing-factory-in-vietnam
· Eshkenazi, A. (2022). Lego builds a resilient supply chain – Brick by brick. Association for Supply Chain Management. https://www.ascm.org/ascm-insights/scm-now-impact/lego-builds-a-resilient-supply-chain--brick-by-brick/
· LEGO System A/S. (2023, April 13). The LEGO Group breaks ground on carbon-neutral run factory in Virginia, USA. LEGO System A/S. https://www.lego.com/en-us/aboutus/news/2023/april/virginia-groundbreaking-release?locale=en-us