Gap Inc.. in search of to generate additional revenues, has formed a collaboration with Ware2Go to speed up its technique to open up its supply chain to other brands and retailers.

The collaboration integrates Ware2Go’s supply chain technology and existing warehousing footprint utilized by different brands and retailers with Gap Inc.’s GPS Platform Services for outsourcing the corporate’s distribution centers and warehouses, returns processing, customer insights, technical and digital capabilities.

The Ware2Go partnership will act as an accelerator for the GPS Platform business, which was launched last fall to boost revenues. It’s been servicing certain large national brands, whereas the collaboration with Ware2Go will service small- to medium-sized retailers and types by enabling them to plug into the Gap network.

“Together we’ll help SMBs grow their brands with our combined logistics infrastructure and cutting-edge automation,” said Kevin Kuntz, head of world logistics achievement at Gap Inc.

“It’s a pay-as-you-go model. You pay for the storage, shipments and labor that you just utilize,” said Steve Denton, chief executive officer of the Atlanta-based Ware2Go. “For us, the collaboration with Gap opens up an entire latest market around apparel and soft goods. We had a void there.”

Denton defined small- to medium-sized businesses as those generating anywhere from $5 million to $250 million in volume. He said the collaboration with Gap Inc. involves moving product through the availability chain “from factory floor to front door — we do all of it.”

Ware2Go’s achievement platform incorporates machine learning and data science. The cloud-based platform records sales patterns and offers customized inventory and distribution insights based on customer data. Gap Inc. won’t get access to data from other retailers and types amassed by Ware2Go, the 2 corporations indicated.

In keeping with the executives, by outsourcing, retailers and types can focus more on what they’re typically best at — product development and marketing — reasonably than logistics and achievement. The collaboration may also enable brands and retailers to more easily enter the U.S.

The collaboration is an extension of Gap Inc.’s business relationship with UPS, which owns Ware2Go and has long handled incoming and outgoing Gap Inc. parcels.

Ware2Go has 35 warehouse partners in its network and now adds Gap’s distribution centers in North America. Ware2Go already works with many small- and medium-sized businesses in addition to larger corporations comparable to Coca-Cola and Thrasio, an Amazon aggregator. Gap doesn’t disclose the massive brands that work with its GPS Platform service.

The Gap strategy is harking back to American Eagle Outfitters‘ acquisition of Quiet Logistics in 2021 for $350 million in money, constructing upon its acquisition of logistics firm AirTerra earlier within the yr to reinforce its supply chain capabilities and extend them to other brands and retailers.

Gap Inc. lately has poured tons of of hundreds of thousands of dollars into modernizing its supply chain, including opening a “state-of-the-art,” $140 million, 850,000-square-foot distribution center in Longview, Texas. It was built to service the growing online business.

Gap Inc. has 13 distribution centers situated on six campuse within the U.S. and one in Canada, several of which have transformed into highly automated, cross-channel achievement centers which the corporate refers to as “customer experience centers.” Along with Longview, the distribution centers are positioned in Fresno, California; Phoenix; Groveport, Ohio; Gallatin, Tennessee; Fishkill, Recent York, and Brampton, Ontario.

Several Gap Inc. distribution centers are rigged with such technology advancements as sort orbs with robotic arms geared to quickly and accurately sort batches of units destined for multiple online orders; automated storage and retrieval systems with automated cranes that race up and down aisles of cupboard space to stash away or retrieve hundreds of cases; unit sorters for high-speed sortation of small lightweight items, and robotic baggers to quickly and efficiently wrap e-commerce orders.

“We wish to monetize what we have now built. We now have made some large strategic investments over time and have lots of capability,” Kuntz said.

He said Gap Inc.’s supply chain has kept up with its demand online, which has grown significantly through the pandemic, but has excess capability to service non-Gap Inc. brands. Kuntz said Gap’s distribution centers are about 80 percent utilized, with some having the capability to handle 1,000,000 units a day, meaning they’ve concerning the 200,000 unit capability available.

For several seasons, Gap has experienced slowing sales on account of internal aspects comparable to fashion misses and store closings, in addition to external aspects, contributing to the surplus supply chain capability.

Many small- to medium-sized brands and retailers already use third-party logistics corporations, though in accordance with Denton, “89 percent have their very own warehouses, but they need optionality to expand.”

In keeping with a Ware2Go survey of SMBs:

“The longer term of achievement looks like SMBs owning zero warehouses,” Denton contended. “Our merchants wish to remain focused on growing their business and product portfolios, and never worry concerning the ins and outs of their inventory placement or build up a labor workforce to support peak season.”