Assessing Supplier Risk

Mattel’s supplier qualification and monitoring processes are informed by risk screening and management, which has two fundamental components. 

Geographical Risk

We reference the World Bank’s Worldwide Governance Indicators (WGIs) to identify geographies with a higher risk of noncompliance. The indicators are based on the following six dimensions of governance: 

  • Voice and Accountability
  • Political Stability and Absence of Violence
  • Government Effectiveness
  • Regulatory Quality
  • Rule of Law
  • Control of Corruption

Critical Supplier Risk

We identify large-volume suppliers, single-source suppliers, and certain suppliers who manufacture products with identifiable Mattel IP for additional risk mitigation.