When you are growing at nearly 30% a year, you need a logistics and distribution partner that not only can keep up, but help plan for what’s ahead. That is the case at Spin Master, one of North America’s largest toy companies and maker of such brands as PAW Patrol, Air Hogs and Hatchimals. When growing pains stressed the capabilities of previous logistics partner, causing excess chargeback fines, inventory discrepancies and long cycle times, Spin Master sought a partner with stronger systems and the ability to serve as a global provider. DSV stepped in and now operates large distribution centers in Southern California and England.
KEYS TO SUCCESS
Flexible handling of volume spikes. Seasonal volume swings are drastic in the toy industry and DSV manages space and labor to economically handle surges, while containing costs during non-peak times. In California, inbound volume can scale to a reasonable amount of containers a day that must be processed in 24 hours.
Direct Drop Shipping to Customer. DSV works closely with large retailers to drop ship retailers’ eCommerce orders from the Spin Master DC direct to consumers. This allows Spin Master’s retail customers to reduce inventory and carrying costs. Paperwork is retailer-specific to ensure a seamless brand experience for the consumer.
Pre-retail services to speed store receiving. DSV handles all services required to make products shelf-ready when they hit the store. That includes point-of-purchase display building, kitting, labeling and re-ticketing.
Vendor compliance to minimize charge-back fines. DSV ensures strict adherence to retail routing and label placement guides to avoid charge-backs. That effort includes transportation planning, where DSV’s traffic coordinators work with retailers to schedule appointments and plan outbound routes.
In California, since DSV assumed DC operations, there has been a significant reduction in charge-back fines and Spin Master now outperforms the established goals for its major retailers. Collaboration between the DSV and Spin Master teams has been a large part of that success.