For more than 38 years, Toysmith built a reputation of trust and customer service within the toy industry, as it manufactures and distributes high-quality toys and gifts. Toysmith applies its standard of delivering best-in-class customer service throughout the company—as its brands and products are sold to gift stores, museums, theme parks, toy retailers and zoos.
Toysmith recently transitioned to a new warehouse management system (WMS). Due to this transition, the company’s primary shipping process was to include pre-manifestation, along with a cartonization routine. Unfortunately, the WMS routine didn’t deliver the fill rate as expected, as it was only 68%, on average. As a result, Toysmith’s labor, materials and, most importantly, freight spend increased.
The company reviewed several different options and, after careful review, chose to work with a logistics software provider. Toysmith’s initial test was a proof of concept with the software provider. It took one month’s cartonization data from its shipping within the WMS and then re-ran it through a cartonization solution. Those results were then run through its existing freight analysis. The results showed a significant improvement in all areas, an overall reduction in the number of cartons per shipment, an increased fill rate per carton and a decrease in freight spend.
Once it realized the opportunity at hand, Toysmith quickly partnered with Accellos, along with the software provider, for customization to introduce the product as its cartonization solution. The process was quick, as the solution was tested and delivered to Toysmith within 45 days.
For further analysis and confirmation, Toysmith conducted a final test, running a similar analysis as it had before, but with a smaller sample size. The toy manufacturer has since reviewed results in a couple of different manners. First, it conducted an eye test, as it was obvious (through visual observation) that the cartons look significantly different. Additionally, Toysmith is noticing a consistent fill rate, which is set at 83%. Therefore, all cartons are now being filled close to the top of each box, which has reduced packing time.
Packers are no longer spending as much time cutting down boxes to pack out the carton. In most cases, they now add a small amount of void to fill the box and then send it down the shipping line. Furthermore, Toysmith has also analyzed its average revenue per carton, which has increased by 12% to 15%.
MagicLogic
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