Our Interview with Santa: How the North Pole DC Sleighs Peak Season
- Lisette Polletta
- 4 minutes ago
- 6 min read
Issue #002 – December 17, 2025
In This Issue (tl;dr):
Inviscid Man recently sat down at the North Pole with everybody’s favorite jolly old elf, Santa Claus, to talk about something even more mysterious than how he fits down chimneys: how the North Pole DC manages to have a perfect peak season, year after year. After leading Inviscid Man on a whirlwind DC tour, Santa talked shop on topics like DC layout, elf labor productivity, and KPIs. As it turns out, behind the flying reindeer and twinkling lights lies a highly efficient operation that makes other DCs blush. Here are some highlights from their conversation.
Q: So, Santa, I can see that you’ve shut down your toy and candy factory and turned your North Pole workshop into a giant DC. Why did you shift your operation from making toys and candy to receiving, storing, picking, and shipping them instead?
A: Shipping? Oh, ho, ho, no, we don’t ship—we sleigh! But you heard right. A while back, we figured out it made more sense to let the world-class manufacturers handle the toy and candy making and let my elves and me focus on what we do best—fulfilling wish lists for good boys and girls during the most wonderful time of the year. We’re pretty good at that part, you know!
So, we turned the old workshop into a modern, high-speed fulfillment center. That meant trading tribal knowledge for a best-in-class WMS that intelligently organizes and directs every task in the DC. In other words, less sawdust and sticky floors, and more barcodes and RFID tags. Ho, ho!
Q: That’s great. And you have to pick the good children’s orders accurately and quickly so you can load your sleigh in time for all those house stops…and housetops, right? How did you lay out your DC so your elves are productive and the toys and candy flow from storage to the loading dock smoothly and quickly, without bottlenecks?
A: That can be a real challenge! But my elves and I analyzed our activity relationships and figured out the right sizes and arrangement for all the functional areas. The forward picking area is sized just right for our peak season, and it’s tucked right next to packing, which is right beside consolidation, which is close to…well, I think you get the idea.
That way, the elves don’t have to walk too far between jobs. They have short legs, you know! Ho, ho! Most of the travel paths are one-way to prevent traffic jams and backtracking, and they don’t cross each other. Nobody wants to see an elf get flattened by a forklift—especially on Christmas Eve! Oh, ho, ho, no!
Q: The industry tradeshows and leading trade magazines talk a lot about AI and all the automation and technology solutions out there: sorters, AMRs, robots, Multishuttles, and so forth. Did you decide to invest in any of that stuff? Or do you stick with less sophisticated, old-school methods?
A: Well, remember, I’m Santa—I love shiny, high-tech toys! I’m like a kid in a candy store when I sneak into ProMat and MODEX. Incognito, of course! Ho, ho! But even at the North Pole, it doesn’t make sense to buy gadgets just because they’re fun and they blink.
First, we focus on getting our DC flows and processes right. Then we standardize them as SOPs and keep them updated in the North Pole DC Playbook. Once everything runs like a well-oiled choo-choo train, then we look at where automation really pays off—usually on high-volume work that’s too menial, repetitive, or demanding for the elves. If the business case for glitzy automation or technology doesn’t beat that of my team of well-trained, well-managed elves with the right tools and equipment, it’s forgotten like all the Tamagotchis and other novelty toys!
Q: You’re talking about methods that are more manual, right? But warehouses everywhere are facing labor shortages and high turnover. I’m guessing even the North Pole DC isn’t immune to that. How do you keep your elves’ morale high, yet keep them productive? Do you give them magic dust?
A: Ho, ho, no! The magic dust is just for the reindeer! For the elves, it’s all about the performance culture we’ve created in our DC.
I really care about my elves. They’re the most valuable asset in the whole North Pole operation. Without them, I’d just be an old guy in a red suit with a long wish list and a sled! Ho, ho! We keep them safe, train and cross-train them well, and give them good coaching. We measure performance objectively and fairly, and we recognize and reward good work—just like I recognize and reward good girls and boys all around the world on Christmas Eve.
My elves perform wonderfully because they feel respected and appreciated. And you know what? The best ideas for improving North Pole DC operations almost always come from the elves themselves, not from me! Ho, ho! There’s nothing like seeing their tired but smiling faces and hearing their cheers after their long shift on Christmas Eve, when I finally fly away to start my deliveries.
Q: Your entire business model depends on one ultra-high-stakes shipping...er, sleighing day every year. How do you identify and mitigate operational risks in your DC to make sure Christmas isn’t cancelled?
A: For me, Christmas Eve is like running a NASA mission. Ho, ho! Good boys and girls everywhere are counting on us, so we work hard to spot and eliminate anything that might keep me from finishing my mission.
We do that by following FMEA principles. On a regular basis, we identify the things that could either cause our mission to fail or make a failure really painful. Then we take steps to reduce or eliminate the bigger risks before they ever happen.
Q: Like you getting sick, or a major blizzard, or a government toy ban?
A: Exactly! That’s why I get a flu shot every year, and Rudolph is always ready to step up if another “storm of the century” tries to cancel Christmas. When the weather outside is frightful, he’s delightful! Ho, ho!
Q: On that note, “on time and in full” is a stretch goal for most DCs, but that’s a make-or-break requirement for you. What other metrics do you monitor to make sure you can achieve your important mission?
A: You can’t manage what you don’t measure, right? You might say OTIF is the shining star at the top of our KPI tree here at the North Pole, but it’s not the only ornament. Ho, ho—there are plenty of important metrics hanging on those branches!
In our DC, we actively track more than a dozen mission-critical KPIs, including peak warehouse capacity used, inventory accuracy by location, picking accuracy, backlog, and units sleighed per labor hour. We watch our dashboards closely and pivot whenever a metric crosses the “naughty” line! Ho, ho!
And every year, after my post-Christmas vacation to somewhere warm, the elves and I crunch the numbers on total cost per unit sleighed, so we can benchmark our performance. And we always find ways to improve, year after year.
Wrapping Up the Interview
Talking with Santa made one thing clear: you don’t need flying reindeer or magic dust to run a world-class DC. You just need smart design, well-led people, and the discipline to keep improving, year after year. If your operation feels more like “silent night, chaotic night” than days that are “merry and bright,” then the principles Santa uses at the North Pole DC can work for you, too. And if you’d like Inviscid Man (and the real-world team behind him) to take a look at your warehouse or DC, we’d be glad to help you uncover a few hidden gifts in your operation…so you don’t have to expect miracles next December 24th.
Until our next episode...thanks again for joining us. We hope you have a Blessed Christmas and Happy Holidays!
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