Warehouse and Distribution Center Robotics Harvard Case Solution & Analysis

Warehouse and Distribution Center Robotics Case Solution

Question 1

Answer:

The Rack and Shelving Manufacturing (RSM)’snew product development strategy fully justifies the need in the market.This new product development strategy will bring new values to the business clients, as we know that the company has B2B business alongside a niche market. It is very important for the company to come up with new product development system for its further growth. After operating in the market for years; it is always essential for the firms to play their roles in improving the society, whereas this product development strategy is fulfilling this role of the company.This new product development will allow the company to make its clients feel their presence in the market.

Whereas, if we talk about the product development strategy and its cycle; the problems in the industry (i.e. fluctuations of steel pricing, poor inventory management, and labor union issues) stimulate the RSM to explore the opportunities in the industry. These problems open new opportunities for the companies operating in the industry. As it has been ten years since any update was introduced in the industry. Innovation in this unit of the industry has been the major lacking for years. RSM got this opportunity by considering all the industry’s problems and then coming up with the solution, which was a new and updated rack and shelving system based on the pick, pack and ship philosophy. The cycle RSM used was also justifying because it was solving the inventory management problems alongside  the labor union issues by providing the information gathering system. The company had available resources to solve the issues being faced by clients in the industry.

 Question 2

Answer:

RSM Supply chain partnership and product manufacturing will allow the company to meet the business’s technical requirement.Manufacturers will get a technology to manage a self-driven inventory system through a supply chain management updated system. The new RSM project will meet all the specifications for the automated storage technology warehouse’s robotic line. RSM’s decision to partner with AGV and AST was only to integrate the two features in the same product development system. This decision for RSM was not that much difficult, because AGV and AST’s strong technology support was irreplaceable in the market.

Whereas AST isa leader in the automated storage and retrieval system, because AST was the first to bring AGVs to the market and now they have a proper forklift. As RSM has a partnership with these market leaders, which ensures the quality and well-managed system for the clients in the industry. This partnership will allow RSM to fulfill the pick, pack, and ship automated system because the technology of AGV would assist it in navigating the technology to automate the self-driving material handling of inventory and also helping them to gather the data.Moreover AST automation system will allow warehouse inventory management through the usage of apps. RSM considered adding the App system to make it easier for the users. Today user friendly products are what customers require and prefer more rather than a web system and a confusing interface.

Question 3

Answer:

It is human’s nature to avoid change regardless of if it’sa good or a bad change; the new system adoption would be a risk for RSM, because clients might be a bit reluctant to use this system. Old systems are very familiar to them and mostly people resist new ideas or products in the industry. Another aspect of product adoption would be the cost of new product’s installation in the company. The company has a niche market, which is very small to attract the rivals first. The other companies in the industry can get into competition and come up with the same updated product management system, so to avoid that risk;RSM needs to take the opportunity of first-mover, because first movers can reap the benefit of huge profits in the industry undoubtedly. As this new product development system can take time to be completed and introduced into the market, which also involves the risk of a new entry into the market. The other risk which can be involved for RSM and AST is product design, as the product design flaw is one of the risks that counts in the product development. Additionally, process cost is also a risk for RSM and AST. These risks are very important to be considered while working on this project, as the logistics sector is changing its vision frequently......................

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