Santa Claus’s Software Magic

Christmas has always been Santa’s favorite time of the year. But until a couple of years ago, making sure that everyone in the world was blessed with holiday cheer was also very stressful. He has, however, been trying to reduce his holiday stress levels and a little bit of software magic goes a long way in this.

Manufacturing with a little bit of magic

Santa’s workshop is growing with each year as the world’s expanding population is creating an ever-increasing demand for all kinds of gifts – from toys to power tools, from clothes to cars, from food items to jewelry. Every want and need in the world is being fulfilled in this small business in the North Pole, with the help of a little bit of magic – and an MRP system.

Even though in the old times, Santa Claus could not afford to purchase business management software along with building servers and training IT-elves, nowadays these kinds of systems have become cloud-based, affordable, and easy to use even for old-timers like Mr. and Mrs. Claus.

Covering every aspect of Santa’s organization

It all starts with a centralized manufacturing CRM (Children’s Request Management) system for managing the humongous amount of letters he receives every year. With every wish list, the system checks which items are already in stock, which items need to be built, and how many extra materials are needed to manufacture them.

Santa’s warehouse has never been as well-organized as it is today. Before implementing the software, it was difficult to track the materials and products coming in and going out of the stockroom. There were a lot of inefficiencies and a lot of waste because something was always overlooked. Now, however, everything is labeled, in its rightful place, and properly recorded in the system. To Santa, this level of order and tidiness is what is really magical.

After checking the stock levels, the MRP system uses backward scheduling to make sure the materials reach the workshop on time and that all gifts are made and packed by December 24, just in time for Santa to start his journey around the world.

The MRP system creates personal production schedules for the elves working on the shop floor. Santa’s little helpers can also log their working time with the help of a magical mobile device. The collected data helps Santa to improve the efficiency of the workshop and see which elves to commend for their good work at the end of the holiday season.

Making sure kids get their gifts

Sometimes, however, the workshop’s production capacity reaches its limit. But that does not mean some kids do not receive their presents this year. Instead, Santa can use the subcontracting functionality in his MRP system to notify companies around the world that he is going to need their support in responding to the huge spike in demand.

When production is over, the quality control elves do a final check on the gifts to make sure that no child would receive a faulty toy. Defects are logged into the system and the data can once again be used to improve the process and minimize future defects.

Finally, the gifts are packed in colorful wrapping paper, then loaded into Santa’s sack and onto his sleigh. He then harnesses his fleet of nine trusty reindeers in front of the sleigh and rockets into the sky to make his deliveries on time, in full.

While Santa is traveling around the world spreading joy, Mrs. Claus goes over the accounting data of their non-profit organization. She checks the COGS (Cost of Gifts Stuffed), the remaining inventory, liabilities, equity, and every other financial aspect necessary for making sure the power couple’s expenses would not grow over their heads and that next year, Christmas would be better still.

Happy Holidays and a Prosperous New Year!