Case Study

BoutiqueToys Inc.: Putting Success Into Play

After working with KidBlox* for more than three decades, Robert Setter* identified a market segment that had been underserved by the iconic toy manufacturer. Recognizing the major business potential, Setter approached KidBlox with a proposal to spin off a new business designed specifically to cater to the overlooked group of small local and boutique shops.

Founded in 2018, BoutiqueToys Inc.* is the exclusive distributor for smaller specialty and independent retailers for KidBlox in the United States. The wholesaler currently offers 300 KidBlox SKUs to its 600 customers and expects to grow to 1,000 customers by the end of the year. BoutiqueToys also has future plans to offer additional toy brands and online sales as the company continues to grow.

Since BoutiqueToys was operating as a startup and was not part of the greater KidBlox organization, Setter had to create a new business from the ground up. Setter had a long and successful track record of building businesses with the KidBlox brand, and it was very important to him to deliver that same level of quality, service and value to customers in his new business venture.

A full-service fulfillment solution

As a startup, BoutiqueToys required full logistics development and support. The company sought a partner that could provide rapid and cost-effective fulfillment and also support volumetric and geographic growth. After reviewing several potential logistics providers, BoutiqueToys selected MonarchFx.

In addition to its logistics capabilities, BoutiqueToys CEO Robert Setter cited the MonarchFx team’s responsiveness and ability to understand his business model and the long-term supply chain strategy as the reasons he ultimately chose MonarchFx.

“When other providers barely made contact and couldn’t grasp the BoutiqueToys business model, the MonarchFx team was incredibly responsive and simplified everything for us every step of the way,” said Setter. “They acted as a true partner with the shared goal of improving the customer experience.”

Bob Setter Quote

Distributed logistics delivers big savings

The MonarchFx team worked closely with Setter to understand his unique needs and define the best solution to effectively support the business. With B2B customer orders expanding and the 2018 holiday season rapidly approaching, it was imperative for BoutiqueToys to have nationwide distribution operations up and running quickly and efficiently.

MonarchFx performed a network design to determine the ideal distribution facility to reach BoutiqueToys’ customers in the most costeffective way. After careful analysis, MonarchFx selected its Dallas, Texas distribution center, which enabled BoutiqueToys to save on inbound freight costs due to its proximity to the manufacturer’s distribution operations.

By leveraging its larger distribution network, MonarchFx was able to negotiate high-volume discounts for BoutiqueToys, resulting in a much lower rate than what the company would have paid for its smaller annual volume through a traditional 3PL or standalone carrier.

Service, scalability and speed

Providing best-in-class customer service is the lifeblood of BoutiqueToys. MonarchFx delivered a holistic supply chain solution that enables BoutiqueToys to focus on serving its customers instead of investing time and resources into its logistics and fulfillment operations.

With an annual growth projection of 67 percent, scalability was also very important to BoutiqueToys. MonarchFx’s distributed logistics network of four fulfillment centers across the U.S. allows BoutiqueToys to ex pand as needed to support customer and volume growth, seasonal and peak activity and additional brand offerings.

Bob Setter Quote

Having launched the company in Q3 2018, BoutiqueToys had minimal time to implement a fullscale logistics operation before the winter holidays arrived. The MonarchFx solution was operational and ready to ship orders in just three months—a fraction of the time it would take a shipper to achieve individually—enabling BoutiqueToys to increase its and its customers’ revenue during the lucrative holiday season.

Benefits beyond order fulfillment

MonarchFx’s support didn’t stop after shipment. In addition to order fulfillment, the MonarchFx team consulted BoutiqueToys on other aspects of its business, including IT projects such as the implementation of an electronic data interchange (EDI) connection with its vendor and the functionality of its enterprise resource planning (ERP) system.

Additionally, the MonarchFx solution offered seamless integration with BoutiqueToys customer relationship management (CRM) software and other technology systems to achieve unification across all of the company’s business operations.

“Our goal is to help BoutiqueToys run its business in the most efficient way possible,” said Jim Tompkins, CEO of MonarchFx. “As a Tompkins International company, we leveraged our extensive consulting background to identify and implement creative operational solutions beyond logistics support. We look forward to continue partnering with BoutiqueToys in this capacity as their business continues to expand.”

*Names have been changed to protect client confidentiality.