Gap Inc. and American Eagle Outfitters Inc., two apparel retailers, are wagering that their logistics know-how can generate income in addition to the sales of jeans and t-shirts at a time when supply chain constraints are elevating the significance of delivery dependability and speed.
The retailers want other companies, especially competing for stores, to manage their product flow by using their warehouses and distribution networks. The initiatives are a reflection of the tactics used by Amazon.com Inc., which operates its Fulfillment by Amazon warehouse and shipping service for independent retailers in addition to operating its online retail store. However, according to supply-chain specialists, retailers face challenges when they try to enter the logistics sector, including potential customers’ worries about data protection and the possibility of losing whatever competitive advantage they may have from managing their own logistics network. Because you’re providing that customer experience, Michael Dominy, vice president of supply-chain research at research firm Gartner Inc., stated that “the customer fulfillment operations are so important to any store any company, but a retailer in particular.”
As a result, giving something to someone else is never easy. from San Francisco The logistics and fulfillment network, dubbed GPS Platform Services by Gap, was just made available to other companies. After purchasing the logistics firms Quiet Logistics and AirTerra last year, Pittsburgh-based AEO established a subsidiary named Quiet Platforms. For other brands, Quiet Platforms provides fulfillment, logistics, and transportation services. To generate income by utilizing its investment in quick delivery to meet the needs of other merchants, Walmart entered the market in August 2021 with GoLocal. The business said last week that it has sent more than 1 million packages in its first year of operation. The services from Gap and AEO are an effort by the retailers to preserve control of their networks while reducing expenses, according to Dale Rogers, a professor of supply-chain management at Arizona State University’s W.P. Carey School of Business. According to Mr. Rogers, “they can make sure that they receive good service by sort of taking the lead on the logistical services and being able to spread some of the expenses across other parties. According to Cathy Roberson, head of research and consulting firm Logistics Trends & Insights LLC, merchants evaluating other retailers’ networks may have data privacy issues as well, particularly if they are rivals. The Gap spokesperson claimed that the retailer uses data protections and that information is only accessible to authorized personnel and logistics operators when necessary. AEO doesn’t have access to the client data at Quiet Platforms, according to the AEO spokesman, which is managed as a separate entity with its client-related technology team, systems, and operations.
