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Can Go Consulting

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CanGo Video Analysis Report (Week 3 & 4)
360 Consulting
DeVry University

1. Market Analysis This market analysis will focus on the benefits of the Automated Storage and Retrieval System also known as the ASRS. The ASRS provides a compact storage capability that maximizes floor space; the automatic retrieval system accurately retrieves items for shipping and replenishes stock. The computerized system automatically delivers the inventory item to the conveyor belt (MHI, 2014).
Layout Design
CanGo’s layout design functionality is poor with tight spaces and congestion in the book storage area. The storage capacity is limited; during peak times shipping is often delayed because books are not in stock.

Revised Layout Design

The revised layout has easier access to products, which frees up space to accommodate additional items. This design affords the company the ability to expand as the business continues to grow. As the design shows the book storage area has changed to accommodate the ASRS and commuters and pick stations has been eliminated.

Benefits of ASRS * Gain up to 85% additional floor space * Reduce labor by 2/3 * Extension of order cut off times * 99.9% accuracy rate * Can generate additional revenue by using freed space and employees for other activities * Traceability * Inventory Control

Cons of ASRS * Initial outlay for the ASRS is large. One aisle cost between $103.000 - $634,000 depending on size and functionality of equipment needed * Specialized ongoing maintenance is required * Continual need to update subsystems

Recommendations
The ASRS will improve CanGo’s profitability and customer satisfaction on several fronts. First, with the implementation of the new system it will lower current salary and wages by 2/3. The shipping and pick staff can be

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