Gap Inc. recently hosted a supplier summit for its top 100 vendors to learn about the company’s priorities — the first one since the onset of the COVID-19 pandemic, a spokesperson told sister publication Supply Chain Dive in an email.
The summit was held on May 21 through May 22 at its headquarters in San Francisco, and served as an opportunity for vendors to meet the company’s newest CEO, Richard Dickson, who was appointed last summer. Suppliers that attended the summit include apparel manufacturers, technology and logistics partners.
“Together, we are driving cutting-edge innovations that will lead our industry forward, and help Gap Inc. strengthen our platform and maintain financial and operational rigor while we continue to revitalize our iconic brands,” the spokesperson said.
Gap is focused on improving its supply chain. During a Q1 earnings call, Dickson highlighted the need for more innovation.
“Our supply chain, for instance, is a really terrific scale benefit for us that gives us unique cost leverage, but we need to accelerate innovation,” he said.
Gap will leverage close partnerships that boost network resilience, data transparency and sustainability, the spokesperson said.
For example last year, the company partnered with Optoro’s returns platform to diversify its reverse logistics and fulfillment offerings. The retailer also activated Optoro’s packageless Express Returns drop-off service at Staples stores in a move to cut costs and consolidate returns.
The company has also been optimizing its procurement tactics through effective sourcing strategies, leaner inventory and fewer price discounts. Together, these methods helped spike the company’s gross margin by 5.3 percentage points in Q4.
