Gap Inc. (NYSE: GPS), a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands, has selected TGW Systems, a leading material handling equipment and integrated logistics solutions provider, to install an automated material handling system in the company’s Southern distribution center, located near Nashville, TN. The project is expected to be operational in early 2013.
Currently, Gap’s process of picking single items is labor intensive and relates to a disproportionate amount of their operating budget. The TGW solution will eliminate the need for standard each picking and automate case handling providing a ‘Goods to Person’ approach which will double the overall productivity of each worker.
In selecting TGW, Gap wanted a provider with experience in apparel distribution. “We conducted a thorough search and knew that TGW was a worldwide leader in AS/RS technology,” said Kevin Kuntz, VP Gallatin Campus, Gap Inc. “TGW’s creative and partnership approach to the design of the system, combined with the depth and breadth of their product offerings and knowledge of our business meant we weren’t limited to one type of solution. With TGW, we were able to explore many options before selecting their Stingray shuttle as it was the only solution that could offer us direct carton handling and meet our throughput requirements.”
Gap will deploy a multi-aisle TGW Stingray shuttle solution and TGW will also be providing the software and interface to Gap systems as well as the carton conveyor to connect the Stingray shuttle solution to Gap's current unit picking and shipping operations.
Gap also had an aggressive ROI timeline. “As part of our operations strategy, we had a tight ROI window for this project. TGW was able match our ROI requirements of less than 2 years,” added Kuntz. “Beyond that, we found other savings with TGW as their solution will take up a smaller footprint in our facility, freeing up that space for other things.”
For TGW, being selected by Gap to provide a material handling automation solution continues to illustrate TGW’s position as a leading systems integrator in the apparel vertical. “When a major apparel retailer like the Gap entrusts TGW to provide such a key component of their operations strategy, and looks to us to be a strategic partner with them as they look further their growth, we can’t be more pleased,” said Larry Strayhorn, president of TGW Systems.