Automated LCBO warehouse system a year late and over budget

In 2011, Tecsys Inc., a supply chain management software company, was awarded a $1.55 million contract by Ontario’s LCBO to outfit an automated warehouse system for keg beer and speciality products. Tecsys edged out five other bidders.

Delivery is now almost two years late and another $425,000 was requested by Tecsys in January, according to The Canadian Press.

“The product was not suitable ‘out of the box’ and, as a result, required customization,” LCBO spokeswoman Heather MacGregor was quoted. MacGregor attributed the delays to changes required to original specifications to meet revised financial reporting and updates to 9 of 17 customizations required by the LCBO.

The new system ordered by the LCBO will replace one deployed in the early 90s, allowing custimers to place special product orders for items not available at LCBO locations.“The system is testing very well and is anticipated to be in place in September 2013, roughly a year later than originally planned,” MacGregor said.

Further details regarding decisions by the LCBO’s board of directors are available here.