HOW DCS ARE REDEFINING EFFICIENCY
That belief is behind the approach that VARGO takes when helping their clients improve their fulfillment process, says Robert Nilsson, chief commercial officer for VARGO. The efficient use of a warehouse’s resources, such as equipment and people, can dramatically improve fulfillment. The reason is that orders arrive and are processed in waves, leading to spikes and dips in activity and an inherent inefficiency, he says. “When you do waves, then it becomes difficult to handle exceptions and prioritization, because the wave is set,” Nilsson says. “You can suddenly have a big wave of orders waiting for an exception order or a prioritization, so utilization grinds to a halt and inventory sits in different steps.” Continuous Flow VARGO uses COFE, its warehouse execution system (WES), to help ware- houses achieve a continuous flow of order fulfillment that keeps the work going at a more predictable, stable pace. In focusing on creating a continuous flow in fulfillment, VARGO employs its WES to improve the utilization of a DC operator’s equipment and labor. The resulting flow leads to the “whole build- ing” working in sync, Nilsson says.
VARGO’s continuous flow warehouse execution system synchronizes workers and machines for peak efficiency, resulting in increased output without big bottlenecks.
“Those fulfillment steps—sort, pick, pack, and ship—is where you need to get constant utilization, and that’s what we are 100% focused on,” Nilsson says. The benefits of the higher utilization that comes with constant flow is considerable, including in some cases for VARGO clients a doubling of output from a facility, he adds. “That’s the power of boxes coming out of inventory and moving continuously without big bottlenecks when a big wave comes in,” Nilsson says. VARGO is not focused on maximizing
efficiency at just one stop, but on maximizing efficiency across the entire fulfillment process, he says. Increasing the speed of just one step in that process might actually undermine the efficiency of the overall process, because other steps in the process might not be able to keep up with that new pace. “The number one goal is running at the right speed continuously based on the other steps that need to be done,” Nilsson says. “That balance drives up utilization.” This continuous flow and balance means workers and equipment throughout the fulfillment process work in sync. “When you see this in action, it looks non-stressful,” Nilsson says. “The work flows continuously, and you don’t get those spikes.” A continuous flow versus a wave leads to a decrease in peak modules, so that a warehouse does not have to keep as much inventory on hand—“utilization is a key for keeping your inventory tighter,” he says. It makes life easier for workers, too. “The software manages the people at the pick stations, so the picker doesn’t have to decide, ‘Hey, give me more orders,’” Nilsson says. “We send orders to the resources that are available at the time. So if someone walks away, orders are routed somewhere else. Managing that continuously is a labor satisfaction piece.”
AUTOMATION INNOVATORS Engineering Innovation has developed a new divert module for its Chameleon SLAM solution to handle “ugly” packages, ensuring they stay in the flow and reduce disruptions. They also emphasize practical and well-planned automation rollouts, offering training programs and scalable systems to support existing teams and build resilient operations. eii-online.com • 765-807-0699 Gorbel offers Destuff-it ™ and Restuff-it ™ pivoting conveyor systems, which are portable and ergonomic solutions for unloading and loading floor-loaded trailers. These systems improve efficiency, enhance worker ergonomics, and increase safety in distribution centers. gorbel.com • 844-268-7055 VARGO utilizes its warehouse execution system, COFE, to help distribution centers achieve a continuous flow in order fulfillment, optimizing the use of equipment and labor. This approach leads to more predictable and stable work paces, significantly improving overall facility output and worker satisfaction by ensuring all fulfillment steps work in sync. vargosolutions.com • 877-876-6384
54 Inbound Logistics • November 2025
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