Case Study on Smartivity

Case study by Kush Goyal

Smartivity is a STEM toy brand. They make DIY toys and puzzles for children below 15 years of age. Smartivity is a high growth startup and they have raised several rounds of multi million dollar funding in the recent years.

We have solved supply chain management and orders management for Smartivity. First let’s look at the major issues they were facing on the supply chain side.

  • Raw material planning: The major issue in raw material planning is to figure out how much raw material to purchase to meet the demand of produce. Every day there is running production and moreover there are special bulk orders which affect the daily production limits. So it becomes a real challenge to know how much raw material to order.
  • Inventory management: Managing inventory in a manufacturing unit is very difficult since you have to keep track of raw materials (rm), work in progress (wip) parts and finished goods (fg). Tracking so many units and also maintaining the rm and wip inventory based on bill of materials (BOM) is very difficult manually or using excel sheets.
  • Delivery Schedules: A lot of times bulk orders are treated specially and raw material is ordered for them separate from the normal orders inventory. These bulk orders need to be tracked differently. You need to know how many products to produce and by which date. Then you need to ship the ready products and note down what is due to be shipped.
  • Sales Orders management: You have keep the inventory sales updated on how much stock is reserved to be shipped to the customers. What is the due date of order delivery. Without information on order it is impossible to know how much inventory is available.
  • Purchase orders management: It is of crucial importance to know how much stock has been ordered from vendors. And how much stock is yet to be ordered but is needed to complete the production demand.

We solved all of the above and other issues facing Smartivity to run operations with ease and efficiency.

  • Raw material planning is done by using average daily demand of finished goods. Sumtracker first calculates how much raw material is need to meet the daily demand of finished goods. Then we compare material required with the current inventory levels. If there is less material available than needed, more material is ordered. To decide the order quantity lead time, MOQ and safety stock is taken into account.
  • Inventory Management is done automatically whenever any action is done or an entry is made in the software. For example in case of job work order when raw material is sent it is decreased form the warehouse and increased at the job work location. And when finished goods are received from the job work raw material quantity is decreased based on the BOM.
  • Using sumtracker you can create a delivery schedule which tracks how much quantity is to be shipped or received for each date. These schedules can be used to track delivery of raw materials from vendors. For example you have ordered 10000 pieces of MDF boards which are to be delivered over 2 weeks on different dates. Now using a delivery schedule you can track if the delivery was made on the deiced dates and in what quantity. If the delivered quantity is less than decided it gets carried forward to the next date.
  • Sumtracker has a very robust order management system. For each order different statuses are maintained to keep track if the inventory is shipped from warehouse but not yet received at the other end. And status for inventory received. Each order can be converted to an invoice as well. Sumtracker will tell you exactly how much inventory is on order and how much is in your warehouse.

Sumtracker is the center of running the show. It manages orders, inventory and production for Smartivity. Send us an email at hello@sumtracker.com to know more how can we help you get great results in ease of managing your business.

Kush Goyal

Kush Goyal
Co Founder