Supply Chain FAQ

Supply chain woes have been featured in recent national and international media and as a result, we are getting some frequently asked questions. This article will be updated as things change but should be helpful in providing insight and additional information based on what we know when it was published. The global supply chain situation is very fluid but we hope this can provide some reassurance that all of our operating partners are working diligently through very challenging circumstances to ensure we continue to deliver the love of reading each and every month.

We have noticed some changes to books that were announced or books arriving at different times. Will this continue to happen?

Everyone is working diligently to ensure that books continue to flow into homes each month in each of the countries where we operate. One of the benefits of partnering with the world's largest publisher, Penguin Random House (PRH), is that we can utilize their existing contracts to ensure our production capacity and transportation are managed daily. Working with PRH we have backed up our arrival dates significantly to accommodate for potential backlogs that are occurring at ports, rail hubs, and ground transportation centers. On the occasion that a delay does occur, we often have another month arriving into a different port that we can utilize by swapping one month's books with another. In the United States, we are utilizing all ports of entry on the West Coast of the United States and Canada and in some cases the East Coast ports via the Panama Canal. Over the last 18 months, PRH has also utilized available airfreight capacity to deliver books for processing.

In the United Kingdom, UK ports have been experiencing backlogs and delays during the Covid-19 pandemic and Brexit. Unfortunately, this has an impact on the delivery of some of our Imagination Library titles. We have done our best to maintain our monthly book mailing schedule, substituting delayed titles with those already in the UK where necessary. We are operating in a very unusual set of circumstances, with many variables outside our control, but we can assure you we're doing everything we can to keep things operating as smoothly as possible.

Will PRH continue to have the supplies they need?

Based on all of our discussions with PRH, we do not foresee any issues with the material used or the capacity to print Imagination Library books. The paper stock for Imagination Library books is acquired separately from other printings.

Do we foresee a rise in postal fees in the next year?

We are constantly reviewing postal updates in all of our countries. While rates are generally rising across the world we can adjust materials, trim size, and formats to help mitigate some increases. Based on what we know right now, we do not foresee an increase in the target program costs. If there are future adjustments needed, we will notify you via email.

USA: Will there be a sufficient number of trucks and drivers for moving the books to TN for processing?

Early in 2021, as the global supply chain started to have more apparent problems, we worked with our operating partners to implement some additional changes. This included adding additional lead time to when the arrival date of the books and transitioning the domestic delivery segment to a team with FedEx Custom Critical which handles logistics from the port of entry to the Tennessee facility. We do not foresee any significant disruptions with this segment of the supply chain.

USA: If the United States Postal Service cuts back on delivery (like 4 or 5 days instead of 6 days a week), how will this affect us?

Imagination Library books already had a longer quoted arrival time based on the class of mail used for nonprofit bulk rates. The recent changes to First Class mail wouldn't affect the delivery window in a significant way.