1. Toysmart
At the Speed of Web
Last February, toysmart consisted of 20 people and an idea to sell toys on the Web, while incorporating a sophisticated supply chain automation system as the firm's back end. The toy company also possessed a sense of urgency.
"Speed was the name of the game," says Mark Reese, chief e-commerce officer at toysmart. "We needed to get to market fast, and we needed streamlined warehouse management."
So Reese started looking at warehouse management automation systems, and in the process found something more. "The consultants at Yantra had a compelling Internet vision of how to manage the business from mouse click to delivery," says Reese.
Speed was critical, but what really sold Reese on the vision was Yantra's use of the Internet. "Their system gave us a way get all of our suppliers integrated. The Internet acts as a universal adaptor."
It was no accident that the two companies got together. Rather, it was the magic of venture capital. Yantra, another East Coast start-up, was plugged into the same VC network as toysmart. "Our CEO was introduced to toysmart through our VC backers," says Rachel Lev, director of marketing at Yantra.
It was Yantra's promise to deliver a system to automate toysmart's complex supply chain, and do it in time for the Christmas season, that won Yantra the contract.
Both companies moved fast. "We went from signing a lease on a warehouse in July to a fully operational business 77 days later," says Reese. "Yantra's ability to work at Internet speed was definitely the defining element for us."
Yantra built a system that manages the toysmart warehouse along with the vendor's complex supply chain. Says Lev: "Suppliers to toysmart range all the way from Mattel to mom-and-pop shops. … Now any supplier can log on to the toysmart site, get orders, print a UPS label, put it on the box, and ship the item."
While toysmart got ahead of Christmas, Yantra got valuable experience. "This gives us a great introduction to the vertical market in toys," says Lev. It may lead to other engagements. "We are in discussions now with other toy vendors."
While other e-consultancies frequently charge that the Big Five can't move fast enough to compete in the e-space, Yantra remains somewhat subdued. "We don't find ourselves competing with the Big Five yet," says Lev. "The truth is, they have expressed interest in partnering with us."
