Kammac outlines how it can help toy companies safely and efficiently navigate inherent complexities, including those related to peak sales season, industry regulations and traceability.
In a sector characterised by evolving consumer expectations and stringent regulations, efficient logistics and supply chain management in the toy industry is vital. As manufacturers lean on their external partners to bring products to market more quickly and cost-effectively, third-party logistics (3PL) providers like Kammac are playing an important role in ensuring the seamless flow of toys from creator to end-user.
Peak season challenges
Peak seasons in the toy industry, especially during Christmas or Halloween, pose distinctive challenges that demand adaptability and swift responses from industry players. Effectively navigating this period requires a strong emphasis on flexibility to address the ever-changing dynamics of market demand. Logistics providers must possess the agility to introduce or discontinue product lines in response to shifts in consumer preferences.
Different sectors have different demands. For example, in the Fancy Dress sector, there are constant fluctuations in demand due to industry trends, celebrations or influences from film and television, so responsive supply chains become even more crucial. Costume suppliers seek a ‘one-stop-shop’ solution from a 3PL that can provide a full-service approach covering order fulfilment, storage solutions and distribution services. Through its eCommerce fulfilment services, Kammac has forged a strategic partnership with a leading international costume supplier, showcasing its ability to meet the ever-changing demands of the sector. From efficient storage solutions to streamlined order fulfilment, next-day distribution services to effective return logistics, Kammac has proven itself instrumental in addressing the unique requirements of peak seasons in the industry. This collaborative effort with a major costume retailer contributes to enhanced customer satisfaction for the brand and, by extension, the end-consumer.
Addressing industry regulations
Faced with rigorous regulations designed to safeguard the safety, quality, and well-being of children, the toy industry encounters a common challenge that all stakeholders must navigate. 3PLs are often required to adhere to specific guidelines in storage and handling procedures, conduct thorough audits and obtain certifications to demonstrate compliance with these regulations.
A noteworthy example in this domain is McDonald’s Distribution Quality Management Program (DQMP), an in-house certification to manage the logistics of its Happy Meal toys. Being the largest toy manufacturer globally, McDonald’s DQMP serves as a significant unique selling proposition (USP) for companies like Kammac. These businesses are mandated to undergo stringent annual audits of storage facilities and handling procedures, emphasising Kammac’s ability to maintain industry standards.
Achieving traceability and visibility
With consumers placing increased emphasis on transparency, manufacturers and suppliers in all industries are turning to digital systems to trace the journey of products from production to the hands of consumers.
For the toy industry, this can involve implementing comprehensive tracking methods, including assigning batch and serial numbers, stock keeping units (SKUs) and licence plate systems. End-to-end visibility, facilitated by Transport Manager Systems (TMS) like those at Kammac, ensures that products can be monitored throughout the distribution process, offering reassurance to all industry stakeholders in the event of issues or product recall. Technologies such as United Pallet Network (UPN), meanwhile, provide complete transparency of all freight, tracking every pallet and consignment from collection point to delivery destination.
The complex dynamics of the toy industry emphasise the pivotal role of efficient logistics, adherence to stringent regulations and the ability to adapt to market changes. Collaborating with third-party logistics providers such as Kammac, which boasts over 40 years of industry expertise, is a way for toy manufacturers to not only meet the industry’s diverse demands but also contribute to heightened customer satisfaction, ensuring the sustained success of the toy industry in a rapidly evolving landscape.
