In your own words describe in terms of business reasons, why SCT needed their ASRS warehouse and why do you believe SCT chose Dag Brucken as the ASRS supplier?
An automated storage and retrieval system (ASRS) is an efficient system used in handling boxes for picking. Super-Cola Taiwan (SCT) needed their own ASRS warehouse for a number of reasons. To start with, an ASRS warehouse helps in eliminating errors that might arise from the manual management of the warehouse. Automatic handling of inventories in a warehouse ensures accuracy and elimination of errors that arise from human error in the warehouse. For this reason, SCT could have considered the use of the modern innovative technology in order to improve their operations in this new region.
Secondly, using ASRS is more convenient and economical since it saves on storage space. With an ASRS warehouse, a firm is able to develop high-rise automated warehouse as compared to manual warehouses that requires low-rise structures which occupy larger space. Since Asia is densely populated as compared to Australia, SCT found it viable to consider using an ASRS warehouse since it could substantially them to in saving cost. Also, ensuring safety in high-rise storage facilities requires modern technology which could only be achieved through ASRS. Another benefit of ASRS is that it allows for automated entry and exit operations for your products. This helps in reducing the number of people required to run warehouses. Automated entry and exit of products also ensures smooth flow of operations in the warehouse thereby ensuring reduced cost of operating and running the warehouse. Automation of warehouse operations helps in lowering labor cost since the firm does not need to employ many employs to manually manage the warehouse.
In addition, ASRS ensures smooth running of operations 365 days a year since it is fully automated. This greatly reduces the inventory and shipping for the company. Since the warehouse is able to work throughout the year, SCT decided to use ASRS as it would enable them to distribute their products customers faster and conveniently. This also helps in reducing the number of goods that are kept in the warehouse.
The major reason why I believe SCT choose DB to supply them with ASRS is because they offer automated warehouse solutions at a considerably competitive prices as compared to that of competitors. In addition, SCT had trust in DB since they had received a State Premiers Exports Award for their innovative and technically advanced design for ASRS warehouse. Also, being a small and upcoming player in the industry, SCT believed that DB could come up with move innovative products and services that would enhance their operations.
Describe what factors you consider would have been required in order for the General Manager of SCT (the project sponsor/owner) to have classified the DB-ASRS project as a success.
The nature of the contact is another important factor in determining the success of a project. The project contract did not have any operational performance requirements which made SCT unable to evaluate the performance of DB. Another factor that the GM could have considered was the ability of the ASRS project to deliver the objectives that had been set by SCT before considering an automated warehouse. The GM could have also considered to overall cost of the project and the benefits that could be gained from the project.
The General Manager of SCT could have also considered the software development process of DB. The software development process employed by DB was not integrative since all the team members were not actively involved in the decision making process. The management of DB had made some tactical decisions and strategic directions before recruiting IT personnel. SCT could have assessed the management and staff subordination in order to determine if the project could have been a success in the long term.
