When you’re growing at nearly 30% per year, you need a logistics and distribution partner that can not only keep up but help plan for what’s ahead. That is the case for one of North America’s largest toy companies and maker of many recognized toy brands. When growing pains stressed the capabilities of previous logistics partners, causing excess chargeback fines, inventory discrepancies and long cycle times, the toy manufacturer sought a partner with stronger systems and the ability to serve as a global provider. DSV stepped in and now operates multiple dedicated distribution centers for this client, located in the US and Europe.
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 number 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’ e-commerce orders from the toy manufacturer’s distribution center direct to consumers. This allows their retail customers to reduce inventory and carrying costs while 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 ensure products are 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 distribution center operations, there has been a significant reduction in chargeback fines and the toy manufacturer now outperforms the established goals for its major retailers. Collaboration between the DSV and toy manufacturer teams has been a large part of that success.