Gap Inc. to outsource its supply chain platform to small- to-mid-sized businesses

Gap Inc. has entered into a partnership with a subsidiary of UPS to open its fulfillment centers to small-to-mid-sized businesses (SMBs).

The specialty apparel giant is partnering with Ware2Go, an on-demand fulfillment platform that enables one-to-two-day shipping across the U.S., to provide supply chain capabilities to SMBs. The companies are combining Gap’s hosted supply chain service (GPS Platform Services), which the chain launched in 2022, with Ware2Go’s delivery platform. 

Specifically, this new collaboration puts Gap’s supply chain network, customer data, technical and digital resources together with Ware2Go’s scalable delivery capabilities. SMBs can obtain access to Gap’s high-tech fulfillment centers that feature automation and robotics technology.

The new joint service offers SMBs a combined footprint of over 35 warehouses and distribution centers, as well as machine learning and data science capabilities.

“This collaboration between Ware2Go and GPS Platform Services is the next chapter in the longstanding relationship between Gap Inc. and UPS,” said Kevin Kuntz, head of global logistics fulfillment at Gap Inc. “We have a deep shared history and decades-long partnership anchored in customer focus and commitment to innovation. Together we will help SMBs grow their brands with our combined logistics infrastructure and cutting-edge automation.”

The new initiative comes as Gap has built on other efforts to boost its presence in the supply chain space in the past year.

These include the acquisition of Context-Based 4 Casting Ltd. (CB4), a New York- and Tel Aviv-based retail artificial intelligence and machine learning platform. The start-up provides technology that is intended to increase sales and improve customer experience through predictive analytics and demand sensing.

In addition, Gap is continuing to expand its position of providing supply chain technology to fellow retailers, much American Eagle Outfitters does with its hosted last-mile delivery service Quiet Platforms.

[Read More: AEO subsidiary Quiet Platforms offers full supply chain visibility]

“The future of fulfillment looks like SMBs owning zero warehouses,” said Steve Denton, CEO of Ware2Go. “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. This collaboration makes it easier than ever before for SMBs to outsource their fulfillment while still accessing incredible customer support and deep transparency into their inventory placements and delivery times.”