Restore DC Processing Capacity

Company Information
Old Navy, part of the Gap Inc., has the mission of offering affordable, fashionable clothing and accessories for adults, kids, baby, and Moms-to-be.

Strategic Operational Improvement

• High-volume automated distribution operation
• Packaging changes resulted in throughput capacity challenge
• Multi-function task force formed to formulate immediate and longer-term initiatives aimed at capacity enhancement

Business Problem

• Need for immediate improvement initiatives
• Several interdependent process issues contributing to throughput problem
• Limited system support in short term
• Product package changes resulted in increase in handling units

TPG Challenge

• Assist in developing a program to yield immediate performance boost and address long-term problems
• Gain commitment to action across functional units

Results

• Identified $11 million improvement potential
• Developed physical and process concept to simplify replenishment
• Introduced procedures for more timely removal of out-of-season stock
• Developed plan to restore Full Case processing capacity