Lego has spent the last few years overhauling its supply chain as the company struggles to keep up with massive worldwide demand. Despite the company's plants in Billund, Denmark, and the Hungarian city of Nyíregyháza churning out millions of bricks every day, Lego has announced that there will probably be a likely product shortfall in Europe this holiday season, according to Market Watch.
The shortage is expected to hit Europe only, however. According to the popular toymaker, the United States, which is served by a Lego plant in Monterrey, Mexico, should experience no shortage during the coming months.
Lego has experienced a massive jump in revenue during the last couple of years, caused partly by the company's pop-culture moments such as the critically-acclaimed blockbuster, "The Lego Movie," as well as the release of several Lego-themed video games, reports The Wall Street Journal.
The production problem is not new to Lego, as the company has struggled with brick scarcity ahead of Christmas last year, as well as in 2012 and 2010 in other territories. Lego has addressed its production problems, however, investing heavily on its production line and optimizing its brick-creation processes.
Chief Financial Officer John Goodwin believes that the changes the company adopts are geared towards growth and efficiency.
"It allows us to be more responsive and flexible and minimizes waste in our system from scrapped products," he said.
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