Issues

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RESOLVEDAug 8, 2026

Review supplier price increases and July margin deterioration

Investigate the Toy - Kuvalis Components pricing change effective 2026-06-15 and assess whether price pass-through or sourcing alternatives are needed, since purchasing costs rose sharply in June-July 2026 while sales fell in July.

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Resolution: Negotiated a 4% pass-through to key accounts and qualified a second source for the affected SKUs; margin recovered to 34% by August.