DC Velocity - July 2015

COFE® Makes Omnichannel History

VARGO®’s Continuous Order Fulfillment Enterprise (COFE®) is the first intelligent Warehouse Execution System (WES) that processes orders without waves for distribution centers. On June 15, 2015, American Eagle Outfitters went live with the first all-waveless omnichannel facility driven by COFE®. COFE® is capable of managing material handling equipment as well as devices, people and processes. Its demand-driven technology integrates and synchronizes the distribution center to position workers strategically with the operation of the equipment.

Pioneering the omnichannel trail

In 1999, VARGO® installed the first fully waveless facility in North Hampton, UK. Levi Strauss still operates that facility, which uses automated equipment to pick orders, for European distribution. Then, in 2004, VARGO® deployed a “continuous flow” system to L.L. Bean. In 2006, VARGO® commissioned American Eagle Outfitters’ first waveless e-commerce WES at American Eagle’s Kansas facility. That facility uses VARGO®’s COFE® WES to provide a continuous flow of product through the outbound process. In 2015, VARGO® provides American Eagle’s Pennsylvania facility with a true omnichannel fulfillment process driven by its COFE® WES.

Balancing labor and optimizing orders

COFE®’s many tools set it apart:

• Dynamic system-directed labor balancing across multiple work zones

• Live item sorting optimization

• Real-time management of next order to release

• Revolving batch picking

• In excess of 150 reporting and management tools

Providing a scalable, fast solution

COFE® fills the gap where traditional retail-centric methodologies and systems fail. A highly intelligent WES, COFE® synchronizes and sequences work by pulling work to the available resources (people and machines). Using this methodology, VARGO® removes the need for costly buffers and complex waving disciplines. It also offers a variety of modules that allows it to customize COFE® for a customer’s specific applications.

Pulling equals lean distribution

Smart distribution requires smart thinking. Smart thinking requires a smart WES. COFE® is a real-time WES that automates wave planning and enables continuous picking for a true lean and smart distribution center. With COFE® in command, companies will realize the following benefits of an end-to-end lean system that:

• Dynamically adapts to varying order profiles

• Immediately activates priority order

• Maximizes worker efficiency

• Eliminates waving and buffers

• Reduces order cycle times

• Increases equipment utilization

Realizing real-time results

The most innovative retail market leaders are experiencing record-breaking results after installing COFE® in their distribution environments. VARGO®‘s design for an American Eagle Outfitters’ facility and the addition of VARGO®’s software have improved performance results AEO has seen its costs for direct-to-consumer distribution are down considerably.

Offering a SaaS pricing structure

VARGO® now offers COFE® Software as a Service (SaaS), a new pricing structure geared toward small- to medium-sized retailers and third-party logistics providers. COFE® SaaS enables smaller companies to take advantage of the COFE® technology and reduce the large capital investment typically required to implement a WES.

To see the power of COFE, call us at 877.876.6384 for a demonstration.

Why VARGO®?

To thrive and exceed your customers’ expectations, you must innovate and adapt. We can help you do that by using our proven and recognized approach to processing orders in your distribution center using our pull-based, waveless methodologies.

VARGO® is one of the largest material handling and logistics integrators in North America. For more than four decades, VARGO®’s team of specialists—with expertise in systems integration, distribution center process improvement and specialized material handling equipment— has been working with some of the largest and best-in-class distributors of online goods. It works with retailers, manufacturers, wholesale and direct-to-consumer distributors to improve material handling operations and move beyond traditional distribution methodologies. At the forefront of the lean distribution movement, VARGO® is the only company that offers COFE® software, the tool that makes true lean distribution possible.