Chain Reactions: Exploding Kittens’ Carly McGinnis on diversifying manufacturing

The Modern Retail Podcast

International manufacturing continues to create headaches for American brands.

For card and board game maker Exploding Kittens, producing the majority of its products in China has had a domino effect on its overall distribution process.

“We’ve had challenges for two years now,” Carly McGinnis, head of production, sales and logistics at Exploding Kittens, said on the Modern Retail Podcast. That’s mainly because “about 90 to 95% of all of our goods are produced in China,” she said.

In 2020, Exploding Kittens’ initial challenges were not so much with production or freight coming out of China -- but more so with shuttered warehouses domestically. This year, like many others, Exploding Kittens’ logistics team is dealing with double the manufacturing timetables, as well as bottlenecks at California’s ports.

The company has experimented with manufacturing in other places over the years. “We’ve produced things in Poland in the past, but China just offers efficiency, quality materials and speed to market like no other location worldwide for us,” said McGinnis. “So we’ve been tremendously reliant on China since the beginning of the company.”

Still, the accumulating issues have led the company, which launched in 2009, to look for production facilities outside of China -- starting with Mexico and Poland. Furthermore, it’s exploring more trucking routes from alternative import ports, like Seattle, Washington. While these alternatives have their own downsides, McGinnis said it’s important to continue diversifying away from a rigid supply chain.

This conversation is part of a series, called Chain Reactions, in which Modern Retail explores the quick and long-term fixes brands are making to minimize their supply chain woes.