Case Study: Gap and VARGO®

Scaling Gap’s Fulfillment Operations

Gap Inc. is a global apparel retailer serving millions of customers across multiple brands and channels. Gap partnered with VARGO® to design and deliver a fulfillment system capable of operating at scale, consistently, efficiently, and under peak pressure. Through a long-term partnership, VARGO® helped Gap reimagine fulfillment as a unified, waveless operation; integrating people, automation, and software into a cohesive system that continues to support growth across Gap’s network.

750k+

Daily Units Processed at Peak

<45 MIN

Order Cycle Time

380+

Picking UPH

<0.1%

Error Rate

Challenge

Fulfillment in a High-Volume Environment

Gap’s fulfillment operations faced growing pressure from rising e-commerce demand, labor constraints, and the need to consistently meet commitments across peak seasons. Existing workflows and automation investments required tighter coordination to improve throughput, reduce cycle times, and ensure reliability at scale. Gap needed a fulfillment approach that could:

 

  • Support sustained growth across a multi-brand network
  • Increase throughput without proportional labor increases
  • Improve order accuracy
  • Maximize the value of automation investments
  • Perform consistently during peak demand

To achieve this, Gap sought a partner capable of designing and orchestrating a fully integrated fulfillment system; one that could evolve with the business.

By Numbers:

  • 3,100 retail locations
  • 6 brands sourced from 30 locations
  • 10 distribution centers
  • Network capacity of 7M+ units/day

Solution

Real-Time Fulfillment, Orchestrated at Scale

Gap partnered with VARGO®, a proven systems integrator, to design and implement a fulfillment strategy supported by multi-vendor automation and real-time orchestration.

 

VARGO® rearchitected Gap’s online fulfillment operations around COFE® WES, VARGO’s real-time Warehouse Execution System. Rather than relying on batch “wave” processing, COFE® enables continuous execution that coordinates labor, automation, and inventory in real time.

 

Key elements of the solution included:

  • Design to optimize space utilization and labor efficiency
  • Multi-vendor automation integration
  • Real-time orchestration through COFE®, sequencing and synchronizing workflows to maximize throughput and reliability
  • Optimization of existing assets, extending the value of prior automation investments while minimizing incremental capital spend

The result was a scalable fulfillment framework capable of adapting to changing demand while maintaining consistent performance.

Design & Implementation:

VARGO® led the full lifecycle of design, integration, and commissioning while working closely with Gap’s teams to ensure long-term scalability.

 

COFE® orchestrates a diverse set of automation technologies across Gap’s fulfillment network, coordinating workflows from receiving through shipping. This unified execution enables Gap to deploy best-fit technologies while operating on a single system.

 

Technologies integrated include:

 

  • MHS & Dematic conveyors
  • OPEX® Sure Sort®
  • TGW ASRS IIRC
  • Eurosort Bombay-style sorters
  • Interroll cross-belt shipping sorters
  • Accutech auto packaging systems
  • FMH automatic trailer loaders
  • Exotec GTP System
  • Ocado GTP System
  • Ocado ORBS

The Results:

Faster. More Reliable. Scalable.

VARGO®’s waveless fulfillment approach has transformed performance across Gap’s fulfillment network. Most importantly, the system continues to perform consistently, even during peak demand, providing Gap with a reliable foundation for ongoing growth.

750K+

Daily Units Processed at Peak

<45 MIN

Order Cycle Time

380+

Picking UPH

<0.1%

Error Rate

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