De-Constructed:
by Phil Guie
K
Inside the Toymaker’s Headquarters Built in One Place, Shipped from That Same Place
’NEX is a construction toy company that thinks outside the blocks, and that definitely goes for its headquarters The second leg of the tour was the on-site warehouse, divided and factory, too. between east coast and drop-ship distribution, the latter of This past June, I had a chance to see how K’NEX, which which fulfills online orders. This past July, the company finished consist of colorful rods and connectors, are created from start to expanding the warehouse, adding 30 percent capacity to the 20 finish. The company’s main office and manufacturing facility are percent added during the previous year. located within a short distance of each other in tranquil Hatfield, K’NEX is its own distributor as well as manufacturer, Penn. For the start of the tour, I dropped by the corporate office, providing a speed to market that Araten says is invaluable. As where the design, marketing, and engineering teams were an example, he mentioned K’NEX’s licensing agreement with recently brought together to increase efficiency. Rovio Entertainment for Angry Birds, which was signed in Led by K’NEX president and CEO January 2012. By June, K’NEX Michael Araten, the tour offered a already had toys—with finished reverse-engineered look at the toypackaging and instructions—on making process, beginning with retail shelves. packaging, and gradually working all “If a licensor wants to work the way back to how individual pieces quickly—and in this digital age, are made. The first stop was the things are getting quicker all the graphic design department, which is time—we’re the only ones that responsible for the instructions that can deliver that speed in a come with each K’NEX toy. Nearby was physical format,” says Araten. the packaging design team, which Manufacturing and distrirefreshes 33 to 50 percent of the entire buting from one location also line each year. makes it easy to fulfill orders for “We’re always asking ourselves, ‘Will K’NEX’s more than 2,000 this get one more person to pick this The design department at K’NEX, where play is a full-time job. specialty retail customers. (Photos by Kari Love.) “A small store might buy 100 up off the shelf? And will this help us sets a year, but for us, there’s not communicate ourselves in the most much difference between dealing impactful way?’” says Araten. with a small store versus a large Down a hallway is a large room with conglomerate,” says Araten. every size box of K’NEX toys currently on the market, along with several motorized displays. For the coming A short drive away from K’NEX year, more than 2,500 different retail headquarters is the facility for displays are planned, including The Rodon Group, the exclusives for Target, Toys “R” Us, and manufacturing arm of K’NEX. Wal-Mart. Each retailer tends to want The Rodon Group, which is something different, whether that’s a currently a subsidiary of the lot of, “wow” factor, or a display toymaker, was founded in 1956 showing how K’NEX offers top value Michael Araten in the conference room of The Rodon Group facility, where classic K’NEX products are on display. by Irving Glickman, the father of for consumers’ money, says Araten.
Yes, They Also Do Windows
14 • THE TOY BOOK
JULY/AUGUST 2014