Dive Brief:
- Gap’s logistics business will team with UPS unit Ware2Go to offer small shippers access to fulfillment and distribution services, according to a Thursday announcement.
- Through the partnership, businesses can access Gap’s network of 35 warehouses and distribution centers. They can also track inventory and gain other digital insights through Ware2Go’s digital platform.
- Gap quietly launched its logistics and fulfillment business GPS Platform Services last year as American Eagle and other retailers leverage their distribution networks to attract commercial customers.
Dive Insight:
Gap is touting its logistics service as a way for smaller businesses to access supply chain capabilities that were “previously only available to billion-dollar brands,” according to its release.
Through the service, businesses can utilize Gap’s network to provide one-day click-to-door fulfillment to customers. They can also get a more accurate look at their inventory levels and delivery times. By outsourcing fulfillment, companies can focus more on customer service and other areas of the business.
“Together we will help SMBs grow their brands with our combined logistics infrastructure and cutting-edge automation,” Kevin Kuntz, head of global logistics fulfillment at Gap, said in a statement.
Gap has built up its distribution network over the past year, adding more facilities and investing in automation and robotics technology. The retailer will focus its $700 million capital expenditure budget around supply chain and technology projects to improve automation, speed and efficiency.
Beyond small businesses, the service is also targeted at international companies that want to expand into the U.S. without investing in fulfillment infrastructure.
“Our merchants want to remain focused on growing their business and product portfolios, and not worry about the ins-and-outs of their inventory placement or building up a labor workforce to support peak season,” Steve Denton, CEO of Ware2Go, said in a statement.
