May 2007

Wow! It has been a few good weeks since I last posted. We are making great progress in the so-called "off-season" towards a fantastic Christmas Eve 2007. The highlight was my trip to India & China to review several potential out-sourcing partners. I am more encouraged than ever at the possibilities for much lower cost sourcing for expansion of our manufacturing, assembly, and distribution capacity. There are at least four viable candidates in each country. It was a fun trip as well. I loved spending time in India & China. While I'm there every Christmas Eve, it is only for a very brief period. I never get a chance to stop, relax, and enjoy the local culture and cuisine. So this was a nice change of pace... though I did have a little stomach trouble after I left India. A case of of "Delhi Belly", as I heard Jangle call it. I'll have to remember to pack the Immodium AD next time.

In terms of the out-sourcing deal, we will be releasing a formal RFP next month with the intent of down-selecting to a favored vendor by the end of July, at the latest. We don't anticipate utilizing a new partner until the Christmas Eve 2008 ramp-up but we'd like to have them named and on-board in time to observe the Christmas Eve 2007 activities. It is a great knowledge transfer opportunity.

I also spent time in New York & Las Vegas earlier this month. I was in Vegas for a private Toy trade show. All of the major manufacturers preview the newest toys with a handful of the world's largest retailers and North Pole, Inc. I usually send one of the elves but decided to go this year myself. I'm glad I did... I can tell you now that there are going to be some really cool items this Christmas! Which is why I went to New York... I was there meeting with several of the Toy company CEOs to finalize deals. We renewed several major contracts for priority allocation & delivery of toys as well as managed to get an agreement to manufacturer several of the newest toys ourselves.

Mrs. Claus & I also continued our work in Africa. She has been there almost the entire time. We have met back up at the North Pole on the weekends I was travelling but, otherwise, she has been there every day. When I wasn't travelling or with Mrs. Claus at the North Pole, I have been there as well. In fact, I'm headed back there first thing in the morning (I am at the North Pole right now as I had a staff meeting this afternoon). So I better get to bed... it's getting late.

I'll talk to you in June. In the meantime, be good. Only a little more than 7 months before I am coming to town....