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Drop shipping and innovative warehouse management

Global toy phenomenon Hatchimals—little creatures that hatch from eggs—were the must-have present for Christmas 2016 and are still on many children’s wish list.

DSV has been helping the producer of Hatchimals, Spin Master, to grow in the UK since the early 1990s.  And since DSV acquired UTi in early 2016, Spin Master is now also a DSV customer in North America as well as Europe. This led to Spin Master and DSV getting key staff together for a three-day workshop in California to explore new ideas for logistics.

All of our partners must be innovative.

Chris J. Jackson, VP for Supply Chain, Spin Master

One example of the innovation resulting is drop shipping, where the toy distributors do not necessarily keep the toys they are selling in their own stocks. Instead, the toys are delivered directly from DSV’s logistics facility – but for the customer it seems as if the entire transaction took place within the distributor’s own eco-system. Other key successes include output increasing by 20% and that DSV now has all orders packed and ready to ship on the first date of the agreed shipping window.

The success of the California workshop led to another one being held in the UK. There is now an IT roadmap to manage Spin Master’s growth, including upgraded EDI (electronic data interchange), optimisation of the warehouse management system and increased use of scanners in stock picking. “A key measure of success for Spin Master is in developing partnerships where we all succeed,” says Chris J. Jackson.

About Spin Master

Hatchimals producer Spin Master was founded in Canada in 1994. The company also makes many other toys such as Zoomer Chimp, Air Hogs and Paw Patrol.

When Spin Master began to chart its course in the children's entertainment industry, the founders recognised that in order to compete successfully with the established brands of larger companies, they had to design and market innovative products that would "wow" consumers and disrupt the traditional toy market. With the inspiration of its founders, who remain actively engaged in the business today, Spin Master has maintained a deeply rooted culture of creativity, partnership and passion.

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