Board Game Supply Chain Basics – Stonemaier Games

Board Game Supply Chain Basics

I tried to think of a sexier name for this post, but I didn’t want to mislead anyone into thinking this is more exciting than it actually is.

A few days ago, someone wrote to me with a question about the basics of the board game supply chain. As it turns out, even though I discuss these different elements on various blog posts, I never link them all together in one place. Until today.

Here’s the supply chain list, roughly in order of operations. This system may vary depending on the publisher.

  1. Publisher (the person/company who coordinates the creation of the product, along with project management, marketing/advertising, and customer service; e.g., Stonemaier Games): The publisher is the lynchpin for the entire process, as most of what they do is outsourced.
  2. Manufacturer (the company that coordinates, prints, creates, and assembles the product; e.g., Panda Game Manufacturing): Most manufacturers do some amount of printing in house, but they often outsource the creation of specific components to a variety of different factories. This results in a key parts of their job being the vetting of those different factories and the final quality check and assembly. Manufacturing requires a minimum of 3 months, usually 3.5-4 months.
  3. Freight Shipper (the company that coordinates the shipment of the product using boats and trucks; e.g., ARC Global): Freight shipping companies typically don’t own the boats or trucks; they just coordinate that process. Ocean freight shipping from China takes around 4-6 weeks, plus time for the shipment to get through customs and travel via truck/train to the final destination.
  4. Distribution Broker (the company that coordinates the storage, sale, and shipping of games to distributors; e.g., Greater Than Games): This step varies quite a bit depending on the company. Larger companies have their own warehouses and sell directly to distributors. Kickstarter-driven and direct-to-consumer companies will often have most of their inventory shipped to fulfillment centers that package and ship their rewards to backers. A distribution broker acts on behalf of a publisher to handle transactions with distributors, especially if the publisher wants to sell to many distributors around the world.
  5. Distributor (the company that sells and ships games to retail stores; e.g., Peachstate Hobby): Distributors buy games in bulk, usually at a 60% discount. They have specialized inventory systems to deal with an array of orders from hundreds or thousands of retailers each week, as well as sales and warehousing staff.
  6. Retailer (the company that sells games to consumers; e.g., Game Nite): Other than the publisher itself, retailers are the only entity in the supply chain that sell games directly to consumers. Retailers can be online, local, or both. Unlike some other industries, if a retailer stocks a game that doesn’t sell, they’re stuck with it–they can’t return it to the distributor or publisher.
  7. Consumer (the person who buys the product): Even though the consumer is at the very end of the supply chain, they actually have the most power. If a consumer wants a product, all they have to do is tell their preferred retailer. A good retailer will try to buy the product from a distributor. If the distributor doesn’t have it, they’ll often tell the distribution broker or publisher that there’s a demand for the product, which can be the catalyst for a new print run.

One observation as I wrote this: The entire supply chain relies heavily on trucks. Trucks are the connection between each of steps 2-7. Fortunately, truck drivers are decentralized, meaning that the system still works even if some truckers stop working. But if anything causes ALL truckers to stop working for even a short amount of time, the entire system grinds to a halt. Let’s hope that doesn’t happen.

Is there anything you’d like to add to or clarify in these descriptions?

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37 Comments on “Board Game Supply Chain Basics

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  1. It seems like what you’re doing with Wyrmspan is initially taking a direct to consumer approach and then distributing to retailers after this initial launch. You’re perfectly within your rights to do that, but it also seems like you’ve taken away the retailer’s customers. Perhaps I am missing something.

    1. I’m not exactly sure what you’re referring to or what your question is, but I can explain what we’re doing.

      On January 31, customers who want to order directly from our webstore will be able to do so. We’ll then ship to those customers throughout February and March. We’ve set aside around 20,000 copies of Wyrmspan for that process.

      Meanwhile, retailers are placing orders through distributors, and on January 31, retailers can also order directly from us (we have a webstore set up specifically to serve retailers) to serve the many customers who prefer to buy our games from retailers. The worldwide English retail release of Wyrmspan is in late March, giving us and distributors time to get all those orders to retailers in such a way that some retailers don’t have an unfair early advantage over the others. We have around 80,000 copies of Wyrmspan designated for retailers.

      So, 20,000 to 80,000…seems like we’re putting a pretty heavy emphasis and value on retailers. As for the timing, having a retail release a little after preorder fulfillment is a standard practice. Compare it to crowdfunding, where publishers accept direct orders from games years before the games are available at retail (if ever). Yes, we value direct customers, as some people want to buy directly from us, and we reward them with launch discounts and shipping before the retail release. But we also value retailers. We’re not “taking away” anything from them–by that logic, aren’t retailers “taking” customers away from us? This is a symbiotic system where we coexist with retailers, serving customers where they want to be served.

      1. You pretty much explained it. The core question was about direct distribution prior to retailers getting it. I get it, there are all types of folks – those that want to buy directly and directly support the publishers, those that want to buy from retailers, those that want it the soonest, those that just want it at the lowest price. As you said, you are kind of covering all the bases. While I like to buy from my local retailers (and will even if it means paying a few extra dollars), many of them sell at retail, so if I have an opportunity to save 15-20% (depending on shipping costs), I usually take it. So in that sense I’ve been lured away from my local retailer, not by another competing retailer (who decides to put it on sale, etc.), but by the publisher. But like you said – you’re just trying to meet the needs and get the product sold. Thanks for helping me understand your processes and by ways of these articles helping folks understand what it takes to get a game out.

  2. […] Board Game Supply Chain Basics […]

  3. […] Board Game Supply Chain Basics […]

  4. […] the last 7 years, we’ve primarily sold our products to three different types of customers: Distributors (who sell to retailers), Localization Partners (who sell non-English versions of our […]

  5. Hi, I created and printed 6000 copies of a boardgame, ( we have patent tm, cpc certification etc. I have not been able to sell them and need outside assistance. Who would be able to help me sell them. Also is there a broker you could suggest that could help me get a contract for the idea ? Thank you!

    1. I would recommend contacting a distributor (or several). Some US distributors are ACD, Alliance, GTS, Peachstate Hobby, and Southern (they each have websites you can Google to find). Good luck!

  6. Hi Jamey,

    It seems like there would be great advantages to vertical integration on US soil. Manufacturing, fulfillment, etc. I’m assuming that people have attempted this but the cost ends up being prohibitive versus China?

    It seems like this industry has grown so much and is dealing with significant logistical issues. No one wants to wait 12+ months for a board game to arrive! I’m wondering if there is opportunity for large scale disruption.

    Andrew

    1. Andrew: Cost is part of the reason, but a few other factors is that there simply aren’t US manufacturers that make many board game components at scale (or at all), nor is there the labor force seeking that type of job in the US.

      Fortunately, games don’t take 12 months to manufacture and ship. Depending on the types of components, the production process typically takes 3-4 months, followed by 1-2 months for the various stages of freight shipping to get from port to retailers.

      Also, I think it’s worth keeping in mind that there’s a big world of gamers beyond the US. :) Even if we made more games here, many of those games would still need to be transported to other regions.

  7. […] because most of my readers aren’t distributors or retailers. Here’s a quick summary of how the system works in the board game world: A publisher (like Stonemaier) creates a game and pays a manufacturer (like […]

  8. Hi Jamey! Would you recommend reaching out to consolidators for indie designers, especially if they’ve sold over 1k games in a Kickstarter, or is it better to track down a few distributors?

    1. Dan: Thanks for your question, and congrats on the success of Chai!

      I personally much prefer to work through a broker. That way I only have one point of contact, and they’re managing the requests, transactions, freight shipping, and communication with dozens of distributors. Greater Than Games performs this service for me, and they do a great job.

  9. Hey Jamey,

    This may not exactly be in your wheelhouse but have you come across any distribution brokers / distributors who specialize in jigsaw puzzles?

    I recently launched a new brand and would be genuinely interested in seeing if if might be right for retail.

    1. Jason: That’s a good question, though unfortunately I don’t know anything about puzzles and puzzle distributors.

  10. If someone were intending to enter the industry by self-publishing their first game on Kickstarter and use an off-shore factory to mass produce the game, what would be the next step? This is a ways in the future but I have a finished prototype I have been playing with friends and am in the final process of polishing it. I don’t have much business knowledge, so I plan on picking up a partner in the future. Thanks!

      1. Thank you for such a speedy reply! This has been a real labor of love for me, and I can’t wait to bring it to the public. As an amatuer, I am excited to bring something I’m truly proud of. Off I go to do more research! Thanks for the link Jamey! If it is alright, may I contact you again in the future?

  11. Thanks for your work,

    How would you approach a distributor for a self-published game?
    And at what point would it be time to search for one (during proto phase?, during pre-Ks campaign? during the KS campaigne?, …)

    1. Jerome: Thanks for your question. I would recommend talking to a distribution broker, as they can handle things that are difficult for a self-publisher to handle. It isn’t something you really need to focus on until after you successfully fund on Kickstarter. At that point I’d recommend reaching out to John at john@geniusgames.org, as he now offers distribution brokerage.

  12. You’re missing the shipping companies and the ports – it is very easy for the supply chain to be disrupted there since there are so few major shipping routes all operated by a few companies or controlled by unions. Two events directly affected us, the LA port strike that delayed containers almost 6 months and affected everyone from Walmart to Apple, and the Hanjin bankruptcy which also had economy wide effects.

    1. Sure, they’re noted under Step 3 in the post. I consider freight shipping to be everything that happens from when the games leave the factory in China to when they show up at your warehouse (trucking from the factory to port, getting on the boat, shipping across the ocean, getting off the boat, getting through customs), getting on a truck, then being driven to the warehouse).

  13. Rob and Alex: Those are good questions about distributor relationships. The simplest answer is the one I mention above: If you can get on board with a distribution broker like Impressions or PSI, they will handle those distributor relationships, transactions, etc. That’s what I do.

    However, a broker needs to be confident that they can sell your game. They look at factors like the success of the Kickstarter project, the BGG rating, and your post-KS sales. They might even look at early reviews. So I think the key is to get people playing and rating your game a early as possible, even if it’s just the PnP. Then use your advance copies to send to reviewers and then to distribution brokers. Oh, and make enough games to enter distribution! If you make 1200 games for Kickstarter and only 300 for distribution, it’s not really worth the time or effort of the broker and the distributors to invest in it.

  14. I’ve heard a lot of comments lately (maybe because I’ve been listening to a lot of varying views) about newer publishers using Kickstarter not actually being able to make relationships with distributors for their product(s) to set up a supply chain after running a Kickstarter. Basically steps 4-7 break down. Maybe it would belong with a completely different blog post but I’d love to hear your thoughts on the struggle that some new publishers seem to have there and how to bridge that gap.

  15. The role of the distributor broker would be an interesting segment of the supply chain to learn more about. I’m not sure I’ve seen much about it online and as a self publisher about to launch a campaign I’m definitely interested in learning more about how independent publishers get their games into distribution, especially if there are partners who help expedite or simplify that process!

    Thanks Jamey!

    1. Looks like I just got ninja’d! Or I took way too long to write my one paragraph post. Either way, I fully agree with the above curiosity.

  16. Great post, it was an easy to read breakdown of the system. Even though they were mentioned, fulfillment centers may have been a good idea to throw in there. Also, what if you are a self-publisher, new, through kickstarter and you may not be working with a distributor or retailer in this traditional sense? One way that I saw it was either selling it yourself through your store, Amazon, etc. Obviously you will not reach the same variety of places, (I guess Amazon is a leading retailer, but you know what I mean). Would the steps then be from Publisher to Manufacturer to fulfillment or own retail system to Consumer? Just looking at a common alternate from a traditional method. I digress- good post :)

    -Austin

    1. Austin: Definitely, I agree that fulfillment centers play a huge role in any company that accepts pre-orders or runs a Kickstarter campaign. Amazon can serve that role through multi-channel fulfillment (though you can also list products on Amazon and ship them from other fulfillment centers). I explored that method early on but moved away from it.

  17. Sorry, that was my poor attempt at humor. I agree that the designer isn’t really part of the supply chain. It just can feel like it sometimes when, like you said in the “hidden job” post, that the game designer title is really “Project Manager”.

  18. Would that make “Designer” #0 since any game would first need to be “supplied” from their brain? Fitting since “designer” can also = 0 time, 0 sleep, 0 $. :)

    1. There are MANY other elements to what creates a board game (see the list on the “hidden job” post linked at the bottom of the article), one of which is the game designer. They’re not part of the supply chain, though.

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