Cango Continues to Expand, Its Case Study

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Just as troubling is the lack of focus on advanced technologies that would make bar coding look antiquated and archaic. The use of Radio Frequency Identification (RFID) for example could vastly improve the performance of the AS/AR system as studies have shown from early adopters of this technology (Davis, Samanlioglu, Jiang, Mota, Stanfield, 2011). Yet there is no mention of this technology in the case study or the discussions in videos. This is a significant shortfall from the standpoint of creating long-term value by adopting a more effective technology that can scale faster than bar coding for example. Second, there is no actual definition of how to create an effective lean manufacturing strategy for the long-term as well. The lack of planning for a sustainable lean manufacturing strategy will over time cause any company to not attain its full potential for cost reduction and time performance gains (Ferdows, Thurnheer, 2011).

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Conclusion

CanGo is in for a rude awakening when it attempts to automate its logistics systems using the AS/RS technology before putting into place more effective lean manufacturing strategies, and the planning for build-to-order sales from multiple sales channels.

Recommendations

First, CanGo needs to plan more effectively for its lean manufacturing programs, then be more selective as to how it implements logistics improvements. Second, it is vastly underestimating how challenging it will be to link its sales channels to the logistics systems, especially with build-to-order strategies......

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