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Project Highlights

Direct-to-consumer Distribution

Case Studies     

Creating Pick/Pack Efficiency—Gardner
Gardner needed a low-cost, efficient means to pick, pack and ship parts to dealers…
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Expanding Storage Space—American Signature Inc.
Operating over 100 stores through two retail chains and multiple specializations, American Signature found increasing demands on its distribution centers…
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From Warehousing to Distribution—American Eagle Outfitters Inc.
As AEO transitioned from a catalog and outlet store to a mall destination retailer, the company chose to evaluate the equipment and methodology of its Warrendale distribution center. Changes resulted in a 40 percent increase in packing productivity…
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American Eagle Outfitters Distribution Center

AEO needed a new distribution center to meet the growing needs and flexibility of three of its business operations: American Eagle Direct,
Martin + Osa and aerie.

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L.L. Bean Returns Processing Center

L.L. Bean’s Freeport, Maine returns processing center needed updating for increased capacity and a more worker-friendly environment, without shutting down operations for improvements.

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RedEnvelope Inc.

Launched in 1999, RedEnvelope’s mission is to make gift giving—no matter what the occasion or circumstance—simple and fun. With its unique assortment of gifts, easy-to-use Web site and seasonal catalogs, the company offers a shopping experience that is inspired, modern and convenient.

As RedEnvelope’s business grew rapidly, the company realized it needed to upgrade its distribution process. Working with a consultant, it developed a specification and bid package for a new order fulfillment system. VARGO™ was able to take the design, make strategic enhancements and was awarded the contract for a turnkey system, which included equipment, controls, software, installation and commissioning services.

VSP (Vision Service Plan)

Headquartered in Rancho Cordova, California, VSP provides eye-care benefit plans that range from comprehensive eye examinations and materials to complete medical and surgical eye care. The company’s Eastern Operation Center, located in Columbus, Ohio, opened in 2003 and houses its high-tech optical lab.

After VSP moved into the facility, the company found that it needed to store a massive number of shipping bins in a very small area and the existing building layout was not conducive to its manufacturing process. VARGO™ engineers reconfigured the building and designed a system that lowered manufacturing costs by 18 percent, consolidated the bin storage area for 30,000 customers and saved 50 percent on the initial outlay of capital for the material handling system.

Retail Industry

Ocean State Job Lot

Value matters at every facet of Ocean State Job Lot. As opportunistic merchants, Ocean State provides various manufacturer retail offerings from closeouts, overruns and packaging changes. In this project, VARGO™ was asked to validate the assumptions and design criteria provided by another firm. After value engineering the system, VARGO™ was able to alter the design and reduce the overall cost of the system.

VARGO™ designed a turnkey system including pallet rack, conveyor equipment, high speed sortation and multi-level pick modules, all previously owned. The equipment was de-installed at the existing site, transported to the new facility and re-installed. Services also included project management, installation and commissioning. The new system began providing the customer with enhanced performance and increased customer satisfaction.

Shonac (DSW Inc.)

Shonac is a division of Retail Ventures Inc. that supplies the shoe requirements for DSW locations, Value City Department Stores, Filene’s Basement, and the shoe departments of approximately 150 Stein Mart Stores. A new program with the ability to read UPC labels on shoe cases at DSW stores enabled Shonac to eliminate the price tagging of each pair of shoes and ship cases directly from receiving to the DSW stores.

Vendors were instructed to label inbound cartons and forward the label information, with contents, in an Advanced Shipping Notice (ASN) electronic data format to Shonac. VARGO™ developed an automated system to receive these products and send them to back-stock or directly to shipping. This true cross-docking system included conveyors, scales, print and apply equipment and platforms along with controls and software, all supplied and integrated into one smooth, seamless material handling system by VARGO™.

Manufacturing

Renosol Corporation

Renosol is a tier-two automotive supplier that has launched a new manufacturing facility in Selma, Alabama. The Selma facility is making foam cushions for car seats and head rests. VARGO™ was asked to design a carrier system used in the production of automotive seat cushions.

After removing the foam from the mold, the polyurethane needs to cure for a specified time. VARGO™ designed, procured and installed an overhead conveyor system, which moves the hanging seats from production to inspection and quality assurance. The benefit of this design is using one operation for the transportation and curing of the seats.

Marsala Manufacturing

Marsala Manufacturing is a manufacturer of moderately priced sterling silver jewelry. The company engaged VARGO™ for two reasons: to conduct an engineering study to identify the correct location for a facility that promotes its direct-to-consumer business and to design its order fulfillment system.

Due to the value and size of the merchandise, of prime importance was the reduction in picking and shipping errors. VARGO™ designed and installed a new system, making sure the product was routed through the necessary checks and balances to ensure order integrity, while increasing the company’s current throughput and productivity.

Wholesale Distribution

Micro Center

Micro Center is part of the Micro Electronics family. Headquartered in Hilliard, OH, Micro Electronics was founded in 1979, at the emergence of the personal computing industry and provides a huge array of computer products and accessories. The company currently serves over 3 million customers nationwide.

With its explosive growth, the company was experiencing problems with moving products into its distribution center and shipping them expeditiously. The expansion of the business required an upgrade of the company’s distribution center, so the company contacted VARGO™. After discussing the issues and existing problems, VARGO™ designed an automated order processing system that allowed the operation to expedite order shipments, increase order accuracy and dramatically improve customer satisfaction.

National Logistics Services Inc.

Founded in 1967, National Logistics Services Inc. (NLS) is a full-service logistics organization located in Mississauga, Ontario, Canada, with an extensive private fleet and transportation network from coast to coast. Their organization supports garment-on-hanger (GOH) and flat goods processing. Services range from pick/pack or transportation only, to complete order processing and delivery of floor ready merchandise.

The market for NLS has increased dramatically, providing processing and distribution services to a host of domestic and international suppliers. VARGO™ designed and delivered a material handling system to NLS that included an automated inbound receiving system, a packing/processing area and a high-speed outbound sortation system that ships over 20 million units annually with the capacity to substantially increase that volume. This new system allows NLS to remain flexible in servicing its customers’ needs.