Asrs Recomendations

Executive Summary

CMN Consulting has seen many different types of Automated Storage and Retrieval systems for CanGo and believes that the best option is Retrotech. Retrotech has a strong reputation for speed of distribution which is something that can make a difference at CanGo operations. The ASRS system will simplify and quickly improve the distribution network that is currently being used. Retrotech offers 24/7 technical support, this is a huge benefit to any company. Retrotech's Technical Customer Service department provides full support capabilities for all Retrotech customers. The customer service department can be reached during normal business hours at Retrotech's facility in Fishers, New York also an after hour and weekend 800 number is available for our contract customers 24 hours a day - every day of the year for emergency support situations. (Retrotech)

With the ASRS system in place, CanGo will no longer need the pick station operators to pick books off the shelf for packaging or wrapping. This function will now be performed by the new automated system that will smooth the flow of inventory and reduce the congestion in this area. The pick station operators can be reassigned to other duties such as customer service.

Supporting Material

At CMN Consulting we feel the primary benefit of a job shop process over an assembly line process is increased flexibility. After seeing the performance data on the ASRS we see it is much quicker than the current way things are done. Having someone to search for various products will result in loss of time and slow productivity. The volume can be doubled if two ASRS systems are purchased which would increase CanGo operations in a dramatic fashion. We see that the most confusion occurs in the book storage area where forklifts deliver best-selling books from wholesalers and order pickers try to locate books to fill certain orders. The ASRS would improve the flow of books, and improve the operations immediately.

Cost Benefit Analysis for CanGo

We believe at CMN Consulting that it will take two years for CanGo to see the profit status after implementation of the ASRS System. (www.mindtools.com) The Cost Benefit Analysis below will demonstrate the saving that CanGo will see in their financials. We build this effect of time into our analysis by calculating a payback period; this will be the time it takes for the benefits of a change to repay its costs. The current system uses 8 operators each retrieving 45 books per hour resulting in a total of 360 books being retrieved per hour, with the use of the ASRS system you can reduce your labor cost by reducing your manpower to one individual and fulfill more orders by retrieving more books per the hour using this automated system.

Site and Facility

Includes the costs of construction of computer rooms, auxiliary spaces, office space, and storage rooms; site preparation; and purchase of office equipment and furniture.

$100,000

Equipment Purchase/One Time Fees

Includes the purchase of all types of information processing and related equipment, including computer systems and peripherals, auxiliary equipment,