Dr. Misty Blessley provides monthly guest posts from her position as Associate Prof. of Supply Chain Management at Temple U.
Santa Claus “manages the world’s largest customer base, the world’s most complex planning and logistics environment, and the world’s largest manufacturing and distribution center,” reports Richard Howells, VP at SAP software, in a recent LinkedIn article (Dec. 14, 2023). So how does one of the most beloved people of the season bring it all together to deliver Christmas delight?
Here are some of the secrets to Santa’s success:
Prioritizes Timely and Accurate Information in Decision Making – by relying on digital technologies and old school techniques such as face-to-face meetings
Understands his Customer’s Needs and Wants – by leveraging feedback from “Elves on the Shelve”, predictive analytics and generative AI, he is able to deal with his customer database of over 8 billion records
Mitigates Sourcing Risk – by distinguishing key materials and procuring accordingly, one approach of which includes using local suppliers
Scales Productivity – by having a single production facility where millions of presents are produced daily
Recognizes the Human Element – by assuring Elf Health and Safety in addition to the corporate culture Santa has long been known to promote
Manages Distribution and Inventory – by reviewed distribution center locations and setting inventory optimization strategies
Controls Transportation – by having has own private logistics fleet consisting of one sleigh and 8+1 reindeer
Promotes Delivery as Promised – by sharpening the sleigh’s runners, helping the reindeer achieve peak fitness, making sure that Rudolph’s nose is shining brightly
Minimizes His Environmental Impact – by having a practically emissions free means of transportation
Assures Good Working Order – by stationing elf maintenance teams around the world
Competes in E-Commerce Like No Other Firm – by having a well-established direct-to-chimney delivery model
Operations managers are responsible for 10 strategic OM decisions that can be implemented in ways that provide a competitive advantage for their firms. Santa has clearly built a world class operations and supply chain management that is unmatched, but his success leaves clues!
No matter what holidays you celebrate, may Santa bring you a Happy Holiday Season and a Happy New Year!
Classroom Discussion Questions:
1. In your Heizer/Render/Munson text, 10 strategic OM decisions are identified. What actions does Santa take that are instrumental to making sound OM decisions?
2. How are Santa and Amazon’s systems similar? Different?