Cango Report

Issue ( ASRS Cost)

The ASRS system that CanGo has chosen is expensive and also would pull personnel from other projects to work on the integration of the new system

Recommendation:

CanGo needs to start with just one ASRS system instead of purchasing two at this time so that they can see how product flows and if they really need second system. The cost of an ASRS system varies in size and how it functions within the warehouse. The cost can be estimated from $115,000 to $225,000. Now that is just purchasing and installing the system. Then the system is going to need to have people to operate it, so that can cost more because it is a very complex system that is ran by a computer that states what shelf it needs to go to and what it needs to pick up. Installing this complex system could take a few weeks up to a month, but it could be sooner if CanGo only orders on ASRS system. (Automated Storage and Retrieval System, 2012)

CanGo needs to wait to integrate the systems until the online gaming project is up and running. Then they also need to wait to integrate the company systems until the IT personnel are less busy on new projects so that they are not to be pulled off the important projects with a tight deadline. We would also suggest giving the team time to get used to the new setup of the warehouse, and to not expect a perfect flow during the first week.

Issue (organization)

• CanGo’s threats stem from their inner workings. By this, I mean their lack of organization and knowledge of unfamiliar territory. The entire staff seems eager to jump at the best ideas without the proper planning and research. Jumping into the gaming world or expanding without the proper capital or know-how can be disastrous. These can be the biggest threats to CanGo’s success. This is especially noticed during both the meeting CanGo has about creating an online gaming system and when Warren is passing the lead role to Nick for creating the implementation plan for online gaming....