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'The Toy Story' How on-demand warehousing saves companies in the toy industry money

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The Black Friday and Cyber Monday phenomenon in the UK has resulted in a massive spike in retail sales in Q4 and this seasonal spike is most visible in the toy retail space. Retailers line up ‘toy wishlists’ and parents clamour to get their children the latest collectibles, puzzles, and drone toys. The season sees leading toy retailers report sales of about 22% in December or 50% for the last quarter of the year.

While seasonal spikes are not unusual across industries, the toy industry certainly has a ‘very prominent’ spike in the last quarter of the year which means they need to focus on ‘ensuring that stock is always available’ and that their warehousing model is quickly scalable based on seasonal demands.

Toy and child

The question they then have is, “how do I maximise the capacity of the supply chain to deliver on demand during these seasonal spikes and during peak season?”

The answer is simple - On-demand warehousing.

The ability to successfully scale warehouse space based on fluctuating product demands, is directly related to an increase in revenue as you only pay for what you use. No money is wasted on un-utilised space or on exorbitant short-term warehousing leases. It also saves you the cost and hassle of paying for additional human resources to manage this entire process.

For instance, one of Stowga’s clients, Paul Callagan at Pi-Top shared how Stowga’s database and platform efficiently replaced weeks of calling and negotiating terms with individual warehouses, giving him the “best cost-effective solution during peak-season". outdoor boxes stacked With Stowga’s on-demand warehousing marketplace, you get all the information you need to make a decision instantly. For example, Stowga’s real-time marketplace gives you a pick of the best locations (close to your customers or retail outlets, close to airports and ports), the option to use bonded warehouses so you pay only after goods have been distributed for sale, access to warehouses who use industry best-practices.

When you need to act quickly, be more agile, need more flexibility and reduce fixed liabilities, an on-demand warehousing marketplace like Stowga, is your solution.

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