How can outsourcing save companies in the toy industry money?


Many industries experience seasonal peaks but nowhere is this more dramatic than in the toy industry, where leading toy retailers can generate almost 50% of sales in the final quarter alone.

This increase in demand for products in Q4 has been further enhanced through the recent introduction of ‘Black Friday’ and ‘Cyber Monday’ in the UK, long a popular phenomenon in the US.

And we’ve all witnessed the mad scrambles of parents trying to get their beloved child the ‘must have’ toy of the season, and subsequent disappointment of those children whose parents who have been unfortunate in their quest.

So what is the answer to maximising your company’s supply chain in peak periods and avoiding the perils of low stock?

3PL offers a great solution for such fluctuations in demand for products. The ability to scale warehouse spacing up and down as required will increase company revenue as you will not be spending money on space not being utilised or paying over the odds for short term warehousing leases. Through utilising 3PL there is the added bonus of not needing to concern yourself with the requirements of additional staffing costs to cope with these peak periods.

3PL ‘s adopt the latest available warehouse technology and train staff to deliver good inventory, so as long manufacturing levels are sufficient, the worry of stocks running low can be avoided. Many 3PL are also in the position to offer complete fulfilment services – Great news for capitalising on the ever growing market of online transactions.

Many companies, like Velta International are well located near ports and airports with good links for nationwide distribution. The expertise of an established 3PL in dealing with the shipment of products to a number of retailers with minimal input from yourself leaves you with more time to focus on your core business.

When choosing a 3PL, opting for a customs bonded warehouse provider can improve your cash flow, and even save you money as it is possible to defer the payment of duty and VAT on products until they have been distributed for sale. This is great news for items that are imported in a state where they are immediately ready for resale and distribution, as well as any imported items that need sorting or re-packing , or need manipulating in any way prior to sale.

And what if you’re business operates in international markets? If you source your products from outside of the EU to be sold onto other non EU markets, there will be no need to pay duty or VAT at all!

Given the number of advantages of working with a 3PL isn’t it time you handed over your warehousing requirements to the specialists to be sure that you are ready for when your toy becomes the next ‘must have item’ of the season?


Related blogs:

Third party fulfilment solutions adding value to warehousing


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