Gap Inc.

Supply Chain Analysis

Case Report

Prof. Dr. Rizwan Raheem Ahmed

International E – Publication
www.isca.me , www.isca.co.in
 Gap Inc.

Supply Chain Analysis

Case Report

Prof. Dr. Rizwan Raheem Ahmed

Professor: Department of Business Administration & Commerce, Indus
University, Karachi, Pakistan
Email: [email protected] , Contact No.: +92-300-829-3560

2014
International E - Publication
www.isca.me , www.isca.co.in
 International E - Publication
427, Palhar Nagar, RAPTC, VIP-Road, Indore-452005 (MP) INDIA
Phone: +91-731-2616100, Mobile: +91-80570-83382
E-mail: [email protected] , Website: www.isca.me , www.isca.co.in

© Copyright Reserved
2014

All rights reserved. No part of this publication may be reproduced, stored, in a

retrieval system or transmitted, in any form or by any means, electronic,
mechanical, photocopying, reordering or otherwise, without the prior permission
of the publisher.

ISBN: 978-93-83520-95-4
 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Executive Summary

Supply chain management is the coordination of planning, making, distributing, and returning of
different work processes. The process is an elaboration of the same in the context of Gap Inc.
and its related brands: Old Navy, Gap, Banana Republic, and Forth and Towne.

The supply chain at Gap Inc. starts at the design and merchandising phase where designers and
merchants develop product assortments and patternmakers create samples. The next phase is of
planning and sourcing where specialists determine quantities to order, and factories are selected
to manufacture garments. The 3rd stage in the cycle is of production and marketing where
factories produce samples and the company approves the fit after which production begins. The
marketing teams review samples to develop marketing strategies. Thereafter, distribution takes
place where the merchandise is sent to Gap Inc.’s distribution centers where audits are
performed, the products are inventories and designated for particular stores, then shipped to the
stores. The final stage in the cycle is of sales and analysis where the visual merchandising team
determines the floor set-up for the products. Company planners and distribution analysts review
stores’ sales data for replenishment and assessment purposes.

The whole cycle lasts about a year at Gap Inc. however, after seeing sales decline for a while in
recent years, Gap realized that it had to do something to minimize it in order to remain
competitive. Each link on the supply chain is manned with effective leaders and managers so as
to maintain smooth flows within the system and report if there are any problems that require
addressing by the top leadership. The solutions can range from capital expenditures to
divestitures, depending on the nature of solutions required. With this report, we have tried to
longitudinally and lattitudinally dissects the supply chain of Gap Inc. and tried to conclude the
different turns it took at each point where its corporate strategy took a new turn. This helped us
appreciate the importance of sound supply chain management that can determine the soundness
with which corporate and business level strategies can be set and further shapes.

Gap Inc. : Supply Chain Analysis iii

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Table of Contents

Executive Summary iii

GAP INC. Introduction 01
Case Abstract 03
Introduction to Supply Chain Management 08
Some Definitions of SCM 08
Difference between Logistic and SCM 09
Effective SCM 09
Levels of SCM 11
Pitfalls in SCM 13
SCM Challenges & Opportunities In 14
Apparel Industry
Competitive Analysis Of GAP INC. 15
Industry 15
Substitutes and Complements 18
Buyer and Supplier Power 18
Entry 19
Role of Purchasing In SCM 20
Corporate Culture of GAP INC. 21
Designers & Buyers 22
Forecasting 23
Production Management 24
Pricing/ Costing 24
ABOUT AUTHOR 26

Gap Inc. : Supply Chain Analysis iv

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Company Introduction
Donald and Doris Fischer opened the first Gap store in San Francisco, CA in the year 1969. The
store was named after the “generation gap”, and the first stores catered almost exclusively to
teenagers and mainly sold Levi’s jeans. One store grew to six by 1970, and in 1976, shares of
The Gap went public, becoming Gap Inc. During the 1970’s and the early 80’s The Gap
remained dependent on its appeal to teenagers, but did attempt to move away from it’s reliance
on the sale of Levi’s by introducing private labels in their stores. By the early 80’s, there were
500 Gap stores in the U.S.

1983 was a turning point for Gap Inc. One event of major significance was the hiring of Mickey
Drexler, former Ann Taylor president, as the president of Gap Inc. Mr. Drexler revamped the
company’s clothing lines to focus on bright, well-made cotton clothing, and he consolidated all
the private labels in Gap stores under the Gap name. Additionally, Levi’s were gradually phased
out, and by 1991;Gap Inc. only sold private label items.

Also in 1983, Gap Inc. acquired Banana Republic, which was then a two-store enterprise that
sold safari clothing. Under Gap Inc., Banana Republic expanded rapidly, and was extremely
profitable for a time in the mid 80’s until the fad of jungle-themed clothing wore thin. The
innovative Drexler revamped Banana Republic, dumping the safari clothing in 1988 and
introducing a wider variety of nicer, more expensive clothing lines to sell in the stores. Through
these changes, Banana Republic returned to the black in 1990.

Gap Kids, founded in 1985, came about after Mr. Drexler could not find any clothes he liked for
his son. The baby Gap line soon followed, with the first clothes from this line being sold in 1990.
These divisions of The Gap were a result of Mr. Drexler’s vision of making The Gap a “life”
brand, providing comfortable clothing for all ages, from newborn to adult. Besides expanding its
clothing lines, The Gap also expanded internationally, opening its first stores outside the U.S. in
1987. By 1993, the Gap had stores in England, France and Canada.

Gap Inc. : Supply Chain Analysis 1

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Gap Inc. experienced some trouble in 1993, as earnings fell due to a combination of higher rents
and slimmer profit margins. In response to this, a management shuffle occurred, and Gap Inc.
focused on improving profit margins, rather than simply increasing sales. The company
rebounded in 1994 through these changes and through the strong performance of the new Old
Navy brand. The Old Navy brand (named by Drexler after a bar he saw in Paris) debuted in
1994, and focused on providing quality-clothing basics at a good value.

However, the Gap line of stores was still experiencing declines in sales. As a result, Robert
Fisher (son of founder Donald Fisher) became president of the Gap division in 1997. Mr. Fisher
refocused the division’s theme on T-shirts, jeans and khakis while implementing the first stages
of Gap’s catchy marketing campaign. However, sales once again became sluggish in 1999, and
Mr. Fisher resigned, with now-CEO Drexler taking over responsibility for the Gap line.

The entire family of Gap Inc. stores suffered a major setback in 2000, through a combination of
miscalculating fashion trends and straying from their product themes. As a result, Gap Inc.
returned disappointing earnings through 2002, which resulted in their stock price losing over 2/3
its value. Debts rose significantly during this period, while inventory management was poor.
International sales were especially poor. Because of this, The Gap split operations into Gap and
Gap international in order to turn around the division’s poor performance.

As a result of all this turmoil, CEO Mickey Drexler retired in late 2002 and was replaced by Paul
Pressler, formerly of the Walt Disney Company. Gap Inc.’s focus since 2002 has been to return
back to the clothing themes that made each brand (Old Navy, Gap, and Banana Republic)
successful, and to streamline the company’s operations. The workforce was cut by 10%, and
several international stores were sold to foreign retailers.

At this time, Gap Inc. working at continuing its rebound from their missteps in 2000-2001
through improving margins and reducing their outstanding debt. Gap Inc. is also planning on
introducing a new chain of stores catering to women over 35, and may introduce a new line of
maternity clothing. By staying on top of fashion trends and maintaining a consistent, unique
message through their brands, Gap Inc.’s prospects may once again be bright.

Gap Inc. : Supply Chain Analysis 2

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Case Abstract
When Don Fisher founded Gap, little did he know that he would be transforming the face of
retailing supply chain forever, He is said to have admitted that he never imagined the store to
grow beyond ‘a modest chain of casual apparel stores.’ Known to operate on the mantra “change
or fail”, Mr. Don Fisher was competitive as he was compassionate. Today the store serves
customers globally through its 3,500 stores and 135,000 employees. “Don always spoke
passionately about building quality and value…”

Gap Inc. is an umbrella brand for Gap, Old Navy, Banana Republic, Gap Kids, Gap
International, and Forth and Towne. Gap being the mother ship of the company is considered
among mid-price brands such as Limited Brands. The store was named after the “Generation
Gap” because jeans had emerged as the youngster’s uniform. Gap caught onto the idea of selling
jeans early on and tried to cater to the heavy demand while other retailers were still scrambling
to make sense of what had hit them.

US apparel market continually demand fashionable new products, yet it often take many years
for most companies to bring new products to market. Most apparel production, even today, is
typically planned far in advance, based on highly speculative forecasts. Long lead-times,
distances and hand-offs between members of the supply chain create tremendous losses for
retailers due to markdowns, stock-outs, high inventory levels and shrinkage. In an effort to
mitigate these losses, the players in this industry have tried to shift risk either back to the
suppliers or forward to their customers. Shorten design, development, Production & distribution
Cycles are the New dimensions in Supply Chain Management: A Case Study of GAP New
trends & Competitive advantages of GAP Inc.

This report analyses the competitive edge that the supply chain of Gap Inc. lent to the building of
its brand In the past, retail stores often carried apparel products months in advance of the season
in which they would be worn. Times have changed, however, and consumers nowadays tend to
buy closer to need. To meet this demand, manufacturers have had to shorten design, –
development, production, and distribution cycles.

Gap Inc. : Supply Chain Analysis 3

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

This report also present how apparel industry leaders have made changes to their purchasing
practices – and even their corporate structures – in continued efforts to improve working
conditions in factories and to reap the benefits of having an effectively managed supply chain
through changes in corporate culture, designing and buying, forecasting, production
management, and pricing.

The main focus of Gap around the time of founding had been Levi’s jeans and (music) records.
The company was founded on the basis of straightening the supply chain by providing “all
possible available sizes of Levi’s jeans under one roof”. Eventually the company transformed
into becoming a main provider of basic clothing items like its own line of jeans, khakis, button-
down shirts, chinos, and tee shirts.

Specialty clothing retailers accounted for 30% of total apparel sales in 20041. Gap Inc. had the
largest marketing share of this group, 31.4% after a few years of declining sales, the company, as
well as the industry, as part of a sales revival strategy, decided to conduct in USA in 2003. This
study on human anthropometrics was conducted to gauge the most recent body sizes of the
population as a result of the changing American body size. This had direct ramifications on
better inventory management as the study enabled retailers to offer better-fitting merchandise. It
is also known that studying demographic trends helps add predictability to the system- it is like a
combination of information and inventory systems management within the supply chain.

Gap Inc. has had a history of keeping track of shifting demographics as a way to shape up its
corporate and business level strategies. Its discovery of the baby boomers delayed retirement
plans enabled it identify demand for older adults requiring work-appropriate clothes. Gap was
part of the specialty clothing retailers that followed the department store crazy following World
War II. However, discount and specialty clothing, of which Gap and Old Navy were a part of,
had started giving these huge, commercial centers of shopping a run for their money. In 2005,
the largest chain of department stores, Federated Department Stores, was headed for
consolidation through acquisition. As well, discount retailers operating on the mass channel
started adding fashionable items to their clothing lines in recent years and that was a great boon

1
Gap Inc., “Gap Inc. Reports First Quarter Earnings,” (2005) Gap Inc. Website (2010)

Gap Inc. : Supply Chain Analysis 4

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

to the success of specialty retailing. This fight for market shares was combated with strategic
alliances, partnerships and the resulting additions to the supply chains of some companies.

Another factor that was keeping Gap Inc. at on its toes was the fast-fashion business model
pioneered by Spain’s Zara and Sweden’s Hennes & Mauritz (H&M). This was revolutionizing
the sector, and other high-fashion retailers had to keep up with fast inventory turnover or risk
losing market share to high fashion consumers. This fast movement in supply chain was fast
becoming the norm and retailers that wanted to remain competitive had to keep up with the
changing tide in retailing. The fast-fashion model was notorious for its tight communication
among shoppers, store managers, designers, production staff, and distributors so it could
regularly create and rapidly replenish small batches of new goods. It managed all design,
warehousing, distribution, and logistics function itself and even produced half of its own
merchandise, enabling it to rhythmically order all steps in the supply chain. As well, it made
capital investments that allowed it vertical integration the chain’s flexibility. Such inventory
decisions as stocking lesser units so as to be able to turn it over fast are part of an overall strategy
of exclusivity and scarcity, thus encouraging full price purchases. Therefore, it can be concluded
that it is not supply chain decisions that are made first, but the kind of corporate strategy that will
dictate inventory, information, production, location, transportation decisions. New collections
were thereafter added to the stores every 6-8 weeks.

There are other external variables, known as microeconomic variables that determine the
prevailing factor conditions in the environment in which a business is to operate. The WTO
quota system for example had an effect on the way Gap Inc. conducts business. During the quota
era, 70% of Gap merchandise was subject to quotas, whereas prices dropped as the phase-out of
the agreement began in 1994.

Another example of macroeconomics variables affecting the supply chain of Gap Inc. was the
change in Federal Trade Commission laws in 1976 that manufacturers could no longer set prices.
This enabled Gap to sell Levi’s jeans at discounted prices, which was previously disallowed by
the supplier, and also allowed Gap to add more brands (and suppliers as a result) to its supply
chain. Within time, Fisher (the founder) hired a president from another large clothier to manage
operations. Within time, Gap became more vertically integrated, stepped up its design function,
and refocused the company efforts in selling basic, casual apparel. This goes to show the effect

Gap Inc. : Supply Chain Analysis 5

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

of a change in leadership and its vision and its subsequent effect on the supply chain. This is
mostly by way of modification to the corporate vision and its related strategy. As an extension to
the same observation, adding brands to a main brand allows a company to become more versatile
and respond to shifting demand. This expands the supply chain as a result and leaves the
company to decide how it wants to pursue its strategy in accordance with its available resources.

The early 1990’s lent further advantage to the company in the form of a recession in the
economy. The company was able to bag a few good deals in terms of planting itself in the middle
of towns and urban neighborhoods. This inevitably increased sales and allowed the company to
expand the base of its supply chain and increase profitability as a result. Thereafter, as part of the
corporate philosophy of ensuring top-notch quality, the company installed over 200 quality
inspectors working inside factories in 40 countries, making the supply chain even more complex
and furthering the cause of the company further.

As part of a corporate strategy, CEO Drexler in 1994 added a third brand to the portfolio of Gap
Inc. that it called ‘Old Navy’. The inspiration for the name was derived from a bar he once
visited in a foreign land. This vision translated into the supply chain being expanded once again.
As well, the dot com bubble dictated the company to add business casual clothing that gave rise
to the trend of khakis, which were also promoted very heavily. Subsequent bad decisions in the
face of changing market dynamics also compelled the company to revise its supply chain,
expanding in some parts, and chopping of others.

The different brands within the umbrella of Gap Inc. can be seen as the different ends to the
supply chain: Gap, Banana Republic, and Old Navy, had centralized buying and logistics
functions, but separate design, merchandising, marketing, and retailing functions. The addition of
further brands therefore can be seen as expanding the end of the funnel and perhaps thicker links
in the supply chain. Further, style decisions and new product offerings can also be seen to be
dictating the supply chain and how it should be designed.

When leadership shifted from CEO Drexler to Pressler, who was more research oriented, he let
the research findings dictate trend that further dictated requirements and expansion in the supply
chain. As well, his decision to empower general managers and the store designers, as well as
letting the VP of Gap brand store experience set the tone for how customers should perceive the

Gap Inc. : Supply Chain Analysis 6

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

store also affected the supply chain. Giving a good store experience as was the mantra of the VP
had an effect on store design options and how things are done- ultimately resulting in changes in
the supply chain.

CEO Pressler also acknowledges challenges in selling Gap abroad in the likes of Germany and
after a dismal run for 10 years, made the hard decision to sell out and wind up from there. These
lackluster sales compelled him to make conscious choices about the supply chain modification
and directed planning to localize sizing and merchandise abroad in future. Thereafter, he decided
to man each sensitive point in the supply chain with a capable leader to make effective decisions
in a timely manner.

The brand positioning for each of the different brands of Gap Inc., such as Banana Republic,
Forth and Towne etc., matters to how the supply chain is designed. The differentiating factors in
product planning, execution, design, production, and marketing are essentially the sum of
differences in the supply chain as well. The market dynamics dictate target markets that have an
effect on target markets, that determine corporate and business strategies that ultimately
determine how the supply chain will be set. It is not but a deliberate attempt at setting up a
supply chain, but a design that is largely dictated by the overall strategy of the firm.

When Old Navy was being set up, it was again the positioning of the brand that dictated how the
existing supply chain of Gap Inc. would be expanded and built upon, so as to respond to market
demand and earn additional profitability. In sum, the different parts of a supply chain are not
disparate elements that just magically come together to function as a support function for the
philosophy of the company. It is up to the company how it wants to go about designing systems
and networks to achieve its mission, aims, and objectives, and use the existing network in its
supply chain for expansion or addition to its product portfolio. To sustain a supply chain, you
need marketing efforts in the face of different macroeconomic variables and vice versa. Said
another way, it boils down to mixing and matching supply chain alterations with marketing
efforts in the context of prevailing factor conditions in the economy.

Gap Inc. : Supply Chain Analysis 7

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Introduction To Supply Chain Management

Supply chain management (SCM) is the coordination of a network of facilities and distribution
options that performs procurement of materials, processing the materials into finished products,
and distribution of the products to customers. SCM is seen as involving five core processes.
These include planning, sourcing, making, delivering, and returning.

Some Definitions of SCM

“A supply chain is the alignment of firms that bring products or services to market.”—from
Lambert, Stock, and Ellram in their book Fundamentals of Logistics Management (Lambert,
Douglas M., James R. Stock, and Lisa M. Ellram, 1998, Fundamentals of Logistics Management,
Boston, MA: Irwin/McGraw-Hill, Chapter 14)

“A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers.”—from Ganeshan and
Harrison at Penn State University in their article An Introduction to Supply Chain Management
published athttp://silmaril.smeal.psu.edu/supply_chain_intro.html (Ganeshan, Ram, and Terry P.
Harrison, 1995,“An Introduction to Supply Chain Management,” Department of Management
Sciences and Information Systems, 303 Beam Business Building, Penn State University,
University Park, PA).

If this is what a supply chain is then we can define supply chain management as the things we do
to influence the behavior of the supply chain and get the results we want. Some definitions of
supply chain management are: The systemic, strategic coordination of the traditional business
functions and the tactics across these business functions within a particular company and across
businesses within the supply chain, for the purposes of improving the long-term performance of
the individual companies and the supply chains a whole.”—from Mentzer, DeWitt, Deebler,
Min, Nix, Smith, and Zacharia in their article Defining Supply Chain Management in the Journal
of Business Logistics (Mentzer, John T.,William DeWitt, James S. Keebler, Soonhong Min,

Gap Inc. : Supply Chain Analysis 8

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Nancy W. Nix, Carlo D. Smith, and Zach G. Zacharia, 2001, “Defining Supply Chain
Management,” Journal of Business Logistics, Vol. 22, No. 2, p. 18).

Difference between Supply Chain Management & Logistic

There is a difference between the concept of supply chain management and the traditional
concept of logistics. Logistics typically refers to activities that occur within the boundaries of a
single organization and supply chains refer to networks of companies that work together and
coordinate their actions to deliver a product to market. Also traditional logistics focuses its
attention on activities such as procurement, distribution, maintenance, and inventory
management. Supply chain management acknowledges all of traditional logistics and also
includes activities such as marketing, new product development, finance, and customer service.

In the wider view of supply chain thinking, these additional activities are now seen as part of the
work needed to fulfill customer requests. Supply chain management views the supply chain and
the organizations in it as a single entity. It brings a systems approach to understanding and
managing the different activities needed to coordinate the flow of products and services to best
serve the ultimate customer. This systems approach provides the framework in which to best
respond to business requirements that otherwise would seem to be in conflict with each other.
Taken individually, different supply chain requirements often have conflicting needs. For
instance, the requirement of maintaining high levels of customer service calls for maintaining
high levels of inventory, but then the requirement to operate efficiently calls for reducing
inventory levels. It is only when these requirements are seen together as parts of a larger picture
that ways can be found to effectively balance their different demands.

Effective Supply Chain Management

Effective supply chain management requires simultaneous improvements in both customer

service levels and the internal operating efficiencies of the companies in the supply chain.
Customer service at its most basic level means consistently high order fill rates, high on-time
delivery rates, and a very low rate of products returned by customers for whatever reason.

Gap Inc. : Supply Chain Analysis 9

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Internal efficiency for organizations in a supply chain means that these organizations get an
attractive rate of return on their investments in inventory and other assets and that they find ways
to lower their operating and sales expenses. There is a basic pattern to the practice of supply
chain management. Each supply chain has its own unique set of market demands and operating
challenges and yet the issues remain essentially the same in every case. Companies in any supply
chain must make decisions individually and collectively regarding their actions in five areas:

1. Production—what products does the market want? How much of which products should be
produced and by when? This activity includes the creation of master production schedules that
take into account plant capacities, workload balancing, quality control, and equipment
maintenance.

2. Inventory—what inventory should be stocked at each stage in a supply chain? How much
inventory should be held as raw materials, semi finished, or finished goods? The primary
purpose of inventory is to act as a buffer against uncertainty in the supply chain. However,
holding inventory can be expensive, so what are the optimal inventory levels and reorder points?

3. Location—where should facilities for production and inventory storage be located? Where are
the most cost efficient locations for production and for storage of inventory? Should existing
facilities be used or new ones built? Once these decisions are made they determine the possible
paths available for product to flow through for delivery to the final consumer.

4. Transportation—how should inventory be moved from one supply chain location to another?
Airfreight and truck delivery are generally fast and reliable but they are expensive. Shipping by
sea or rail is much less expensive but usually involves longer transit times and more uncertainty.
Stocking higher levels of inventory must compensate for this uncertainty. When is it better to use
which mode of transportation?

5. Information—how much data should be collected and how much information should be
shared? Timely and accurate information holds the promise of better coordination and better

Gap Inc. : Supply Chain Analysis 10

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

decision-making. With good information, people can make effective decisions about what to
produce and how much, about where to locate inventory and how best to transport it.

The sum of these decisions will define the capabilities and effectiveness of a company’s supply
chain. The things a company can do and the ways that it can compete in its markets are all very
much dependent on the effectiveness of its supply chain. If a company’s strategy is to serve a
mass market and compete on the basis of price, it had better have a supply chain that is
optimized for low cost. If a company’s strategy is to serve a market segment and compete on the
basis of customer service and convenience, it had better have a supply chain optimized for
responsiveness. Who a company is and what it can do is shaped by its supply chain and by the
markets it serves.

The Supply Chain

SCM exists in both service and manufacturing environments. A typical supply chain consists of
many interactions between suppliers, manufacturers, distributors, retailers, with the ultimate goal
of providing either a service or a product to customers. This also works in reverse with the
customer at the head of the process when returning a product. SCM is used as a means to
integrate planning, purchasing, manufacturing, distribution, and marketing organizations that
normally do not work together to achieve a common goal. Each works toward goals specific to
their own organization that accomplish narrow objectives. SCM is a way of integrating these
varying functions so that they work together to maximize the benefits for all involved.

Levels Of Supply Chain Management

There are three levels of SCM: strategic, tactical, and operational.

Fig 2: Three Levels of SCM [Source: Auto-ID: Managing Anything, Anywhere, Anytime in the Supply Chain, Bose and Pal, ACM August 2005]

Gap Inc. : Supply Chain Analysis 11

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Strategic Level
Strategic SCM deals with future planning than in looking at market evaluation, capacity issues,
new products, and technology changes. This planning is addressing issues that may be factors
several years out. This is accomplished at the executive management level.

Tactical Level
Tactical SCM involves a shorter planning cycle. It is more concerned demand planning,
inventory planning, and supply planning. This is determined at a less senior level than Strategic
SCM.

Operational Level
Operational SCM is current planning activities measured in at most weeks. Operational SCM
involves the majority of the operations. It includes demand fulfillment, scheduling, production,
transport, and monitoring.

Decisions To Make
There are many decisions that are made when looking at SCM. They follow the above
categories. Strategic decisions are made over longer periods of time and linked to a
corporation’s strategy. Operational decisions are more short term and look at day-to-day
activities. Four major decisions are considered. They include decisions on location, production,
inventory, and transportation. A geographically strategic placement of the production facilities is
key to creating a successful supply chain. Decisions on what products to be produced have to be
made wisely and strategically. Also, where these products (locations) will be manufactured is
very important to SCM. Inventory decisions and management is critical. Some inventories are
necessary to hedge against uncertainty, but this comes with a cost. Managing these inventories
efficiently will be of benefit to the corporation. Transportation decisions include cost versus
benefit. Air transportation is costly, but fast and reliable. Other modes of transportation may be
cheaper, but the sacrifice has to hold inventories due to delays that may occur. If the above
decisions are made with careful and strategic thought as well as with concern for integration, the
supply chain should be efficient and successful.

Gap Inc. : Supply Chain Analysis 12

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Pitfalls in Supply Chain Management

No Supply Chain Metrics:
In a supply chain with multiple sites, each site will often have its fairly autonomous management
team. The objectives of the various teams may differ, and even be conflicting. Inventory may for
example be reduced at a Site A of a supply chain, and thereby, seen from a local perspective, the
performance is enhanced. But the inventory decrease may also decrease Site A's flexibility
Because Site A now responds more slowly to changes, Site B, which is Site A's customer will
have to increase its inventory (of Site A parts) in order to maintain its flexibility and level of
customer service. The lack of supply chain metrics has prevented managers at Site A to see that
their local improvements has not lead to improved overall performance of the supply chain. The
objective of supply chain metrics is to give the basis for evaluations of the performance of the
whole supply chain as one system.

Inadequate Definition of Customer Service:

Too few and in concise metrics for customer service. The evaluation of performance becomes
difficult, and certain aspects of customer service may be overlooked.

Inaccurate Delivery Status Data:

Customers are not correctly informed of delivery dates of orders and of late deliveries.
Companies can often not readily retrieve the information needed to do so.

Inefficient Information Systems:

Databases at different operation sites that describe system environment, inventories, backlog,
future production plans, and so on are often not linked. Information must be retrieved manually,
and this can be a long process. Planning cycles may therefore be long, using highly uncertain
demand forecasts. The wrong products are made, and inventories and backlogs grow.

Ignoring the Impact of Uncertainties:

Too often supply chains do not track uncertainties such as suppliers' delivery times, the quality
of incoming materials, manufacturing process time, transit times, and so on. This leads to non-
optimal stocking levels. In some cases uncertainties are properly tracked, but there is no follow-
up.

Gap Inc. : Supply Chain Analysis 13

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Simplistic Inventory Stocking Policies:

Stocking policies are often not linked to knowledge of the uncertainties mentioned above.
Stocking policies are often based on the quantity usage of the items stocked. This says nothing
about the uncertainty associated with the usage. Analysis show that stocking levels could be
greatly reduced by transferring stocking policies from being quantity based to being uncertainty
based.

Organizational Barriers:

Entities in a supply chain may belong to different organizations within the same company. The
organizations will independently measure the performance of the entities. While each entity is
occupied with achieving local goals (much like in pitfall 1), important synergies may be lost.

Incomplete Supply Chain:

Supply chain managers are often focused only on the internal supply chain. Going beyond the
internal supply chain by including external suppliers and customers often exposes new
opportunities for improving internal operations. Through agent-based management and
information system with increased integration and coordination many of these pitfalls can be
avoided.

Supply Chain Challenges And Opportunities In Apparel Industry

In the past, retail stores often carried apparel products months in advance of the season in which
they would be worn. Times have changed, however, and consumers nowadays tend to buy closer
to need. To meet this demand, manufacturers have had to shorten design, –development,
production, and distribution cycles.US apparel market continually demand fashionable new
products, yet it often take many years for most companies to bring new products to market. Most
apparel production, even today, is typically planned far in advance, based on highly speculative
forecasts. Long lead-times, distances and hand-offs between members of the supply chain create
tremendous losses for retailers due to markdowns, stock-outs, high inventory levels and
shrinkage. In an effort to mitigate these losses, the players in this industry have tried to shift risk
either back to the suppliers or forward to their customers.

Gap Inc. : Supply Chain Analysis 14

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Competitive Analysis
Industry
Gap Inc. operates within the specialty retail apparel market, a market that contains several large
direct competitors, such as American Eagle Outfitters, Abercrombie and Fitch, J. Crew and
Aeropostale. Because of the nature of the fashion industry, independent specialty stores and
boutiques can compete with these larger brands on a localized level. Additionally, a variety of
larger retailers also compete with Gap. Department stores such as Sears, J.C Penney, T.J. Maxx,
Marshalls and Macy’s sell significant amounts of clothing; some of the aforementioned stores
obtain a majority of their revenues from the sale of apparel.

It is worth mentioning that superstore retailers such as Target and Wal-Mart sell low-priced,
lower-quality clothes, so they could also be considered as indirect competitors to Gap. Clearly,
there are a large number of apparel retailers, and a smaller, though still large, number of direct
competitors to Gap within the specialty retail industry. This competitive landscape lends itself to
a high level of price competition.

The specialty apparel market is one, which has generally shown slow, but steady growth. Barring
a major recession forcing consumers to buy no-frills clothing or an unexplained broad increase in
demand for brand-name clothing, there is no obvious obstacle to continued slow growth.. As a
result, in order for firms to gain market share and grow, they must take away market share from
their competitors. One of the more interesting aspects about the specialty apparel market is that it
is a market where buyers ‘faces essentially zero switching costs. While firms try their best to
differentiate their products in a way that will draw buyers of a rival brand of clothing to their
brand, each brand of clothing is only superficially different from another brand. The major
apparel retailers are all essentially selling articles of clothing, so it seems illogical to call them
different products. However in fashion related markets seemingly trivial product characteristics
are of great importance to consumers. Differences in style create brand preferences among
consumers. Jeans are jeans, but to a consumer a pair of jeans from the Gap and a pair from
Abercrombie & Fitch are two distinct goods, and a buyer will be willing to pay different prices
for each. Competition, therefore, arises in fashion. Firms want to appeal to as many consumers as
possible while keeping those already loyal to the brand happy with the style of clothes the firm

Gap Inc. : Supply Chain Analysis 15

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

offers. The winning style maintains the brand loyal customers association with the firm’s image,
while attracting new buyers. A mistake in fashion, however, will lead some loyal customers to
abandon their brand, and will fail to attract new customers.

Each Gap brand caters to a variety of consumers, with some overlap. However, each brand has a
target market and specific methodology for acquiring consumers. Examining each brand with
regards to these factors will give a much better picture of the competitive landscape.

The Old Navy brand targets the lower middle-to-middle income consumer, overlapping to some
extent the target market of the Gap brand as well. The target demographic are moms and dads,
and to a lesser extent, young adults and teens. Old Navy stores are generally the largest of the
three Gap brands; additionally, the stores are often standalone, outside-the-mall units. For
comparison, Old Navy has 843 stores with 16.8 million square feet, while Gap has 2,273 stores
with only 13.0 million square feet. The selling points of Old Navy are fashionable, quality
clothing at low prices. Because it’s a brand, which uses price as a selling point, larger retailers
such as Target and Wal-Mart along with department stores compete with Old Navy. Often, Old
Navy stores are located next to or nearby these types of stores. Conversely, they also compete
with more fashion-oriented brands like Aeropostale, although these stores are more often
mentioned as competitors with the Gap brand. Against these brands, Old Navy competes for
customers by providing lower prices.

Gap has the broadest customer base, and a target consumer is difficult to define. The Gap
consumer ranges from lower middle to upper-middle income, the former for quality items and
the latter for fashion basics. The majority of sales are to adults between 18 and 35, but
consumers range from babies to baby boomers.

Gap stores are generally found in malls and shopping plazas, with the occasional standalone
store. Within the malls, Gap stores are larger than the typical mall store, taking up two or three
units to accommodate the numerous Gap divisions(Gap kids, baby Gap, Gap Body, plus the male
and female divisions). Marketing is key for Gap, as they compete with a large number of firms,

Gap Inc. : Supply Chain Analysis 16

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

and it is imperative to differentiate themselves from the crowd. These competitors include
American Eagle, Abercrombie & Fitch, Ann Taylor, Express, and Eddie Bauer.

Banana Republic represents the most pricey and fashion-conscious of the Gap brands. Its target
consumer is generally 25-35 years old, is willing to pay a premium for style, and lives in or near
a metropolitan area. The fashions available in store are targeted for both fashion-forward and
fashion-follower consumers. One of the most important selling points of Banana Republic is the
shopping experience. Management recently focused on providing better customer service and
longer training periods for new employees in order to foster emotional connections with the
consumer. Additionally, Banana Republic has implemented some frequent shopper incentive
programs. Banana Republic competes with Brooks Brothers, J. Crew, Ralph Lauren, Kenneth
Cole and Armani, among others.

There is no cooperative pricing in the specialty apparel market. Firms price their clothing based
on their target customer. Some trendier firms set higher prices for their apparel, in order to
appeal to consumers interested in conspicuous consumption, a market segment that Gap targets
through its Banana Republic brand. However, pricing by Gap within the brands generally
follows the quality of clothing being produced and usually does not reflect a significant mark up.
In any event, price competition within the specialty apparel market can be fierce, especially during
seasonal sales. Given these market characteristics, not only is it crucial for Gap to continuously identify
popular fashions across each of its market segments, but also it is also essential for Gap to
effectively market its fashions to its target consumers.

Gap has done well in diversifying its market presence with Old Navy, The Gap, and Banana
Republic. This has enabled Gap to target a wider variety of customer types than its competitors,
which has lead to increased sales. As Gap has geographically saturated its markets, it appears
that the extension of its brands to new customer types (maternity, women over 40, etc.) may be a
solid strategy to increase sales and market share.

Gap Inc. : Supply Chain Analysis 17

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Substitutes and Complements

On an industry level, there is no popular substitute for clothing. Lack of an identifiable substitute
for apparel keeps demand at a level consistent with the broader performance of the economy. A
booming economy where individuals have more disposable income may lead them to buy more
clothing. In the reverse situation, demand for new clothing will likely drop if the economy is
performing poorly. Because there are no substitutes for clothing, an increase in price by one firm
will cause consumers to purchase clothing from another firm. If prices rise throughout the
industry, consumers will buy less clothing.

The fact that consumers essentially face zero switching costs underlines the importance of Gap
maintaining the popularity of and their customers association with its different brand images.
While the declining sales observed in 2001-2002 can be partially attributed to the economic
downturn, poorly designed marketing campaigns that were too focused on small portions of the
target market segments also seem to have been a significant cause. However, in recent years,
Gap has shifted the focus of its marketing campaigns to target a broader customer base, allowing
more customers to identify with its brands. For example, market research allowed Gap to better
identify its target customer for the Banana Republic line, which in turn enabled Gap to market its
products more efficiently. The resulting sales increases indicate that the threat of substitutability
can be effectively reduced through marketing efforts that maximize customer association.
Complements, including such accessories as shoes, jewelry, purses and the like exert a very
minor effect on the demand for apparel. Consumers, on occasion, will buy clothing to match a
pair of shoes or piece of jewelry, but such purchases are likely of little significance in the overall
demand in the apparel market.

Buyer and Supplier Power

Supplier power is concentrated in the firms who supply the raw materials for clothing production
and the factories that are contracted to produce them. There are many sellers in both markets, and
the power they possess is limited since demanding a higher price will cause the clothing
manufacturer to buy the raw materials elsewhere. For instance, Gap contracts factories in over 60

Gap Inc. : Supply Chain Analysis 18

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

different countries; if one factory is asking too high a price to produce their clothes, Gap can take
their business elsewhere. Only if a factory holds a certain expertise in producing a certain type of
clothing will they hold much power over the firm selling the clothes. There is little threat of
vertical integration by suppliers, since most of these suppliers are not located in the United States
and there are significant barriers to entry into the domestic market. Since Gap only sells their
products directly to consumers, buyers wield little, if any, direct power in this market. Prices are
non-negotiable, and the fact that buyers can shop around for better prices is more a product of
competition rather than buyer power.

Entry

Gap faces little threat of increases in price competition by entry of new firms into the market.
Smaller boutique-style clothing stores may be able to compete on a local level with the Banana
Republic brand, however such firms likely would not be able to expand, and both Gap and Old
Navy enjoy a cost advantage in producing staple articles of clothing, such as jeans and sweaters.
Due to economies of scale in producing large amounts of clothing, entrants will have extremely
hard time producing clothing at cheap enough prices to compete with Gap and its competitors.
Entrants would also have difficulty in finding supplier firms who would produce their clothing at
a competitive cost level. Costs drop per unit of clothing produced, and an entering firm would
need to order a large amount of clothing in order to enjoy the same economies of scale that Gap
enjoys.

Brand loyalty is also important in fashion. Because many consumers have strong preferences for
certain brands or styles of clothing, new entrants would find difficulty in increasing the amount
of customers they attract to their stores without incurring significant advertising expenses.
Because of their size advantage and economies of scale in advertising, Gap has a significant
advertising advantage over all other direct competitors within the specialty apparel market. They
can afford to run well-known nationwide television advertising campaigns while other firms in
the market do little or no TV advertising. A new entrant trying to steal away brand loyal
customers from Gap would need vast advertising resources in order to establish their brand and
be competitive, which is unlikely for an emerging firm. Other than monetary considerations, the

Gap Inc. : Supply Chain Analysis 19

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

inputs necessary in such a market are not extremely difficult to secure. Raw materials, such as
fabrics and dyes are plentiful and available in bulk. Little technical expertise is necessary to
produce clothing as well. The greatest difficulty facing a new firm trying to produce at a large
scale would be in finding/building factories to produce the clothing cheaply. Most clothing is
produced in the international market, and outsourcing production in this way through the
purchase of production rights within a factory can be moderately difficult, and the initial
investment would be very expensive.

The level of post-entry competition faced by a new firm entering into the specialty apparel
market depends on the target market and the prices they plan to sell their product. A new firm
challenging Old Navy would have a hard time competing price-wise; Old Navy prices their
clothing cheap, and a new firm would find it hard to survive on the slim margins such low prices
afford on an undoubtedly smaller volume of sales. If they were to try to lower their prices below
that of Old Navy, brand loyalty might keep customers shopping at Old Navy anyway, while the
volume of sales the new firm would attract would be too small to sustain the small profit
margins. Competition from an entrant into the Gap or Banana Republic market would entail
more fashion and advertising competition rather that price competition. This goes back to the
brand loyalty issues the entering firm would face. As mentioned before, significant resources
available for advertising and marketing would be required in order to compete at a significant
level within the industry.

Role Of Purchasing In Supply Chain Management:

For the past 15 years, many apparel companies have been actively monitoring their supply
chains. Throughout, the majority has looked to factory owners and managers to make changes in
factory conditions and operations to comply with local laws and meet brand compliance
requirements. To meet requirements, demands were placed on suppliers to increase wages,
minimize excessive overtime hours, secure freedom of association, and improve health and
safety systems for workers. Simultaneously, brands were dictating lower and lower prices for
products. Increasing demand for products at lower prices frequently prevents suppliers from
having the resources necessary to abide by the standards laid out in codes of conduct.

Gap Inc. : Supply Chain Analysis 20

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

More recently, labor activists and socially active investors have turned to the inner workings of
apparel companies to see how the companies’ activities have had an impact on factory
conditions. A study by Oxfam UK concluded that “until companies recognize that their own
sourcing and purchasing practices are one of the root causes of poor labor standards, they will
not resolve the problems in their supply chains. “In addition, improving purchasing practices not
only minimizes compliance violations but also saves companies on their total costs of bringing a
product to market, moves a product to market faster, improves quality and prevents burn out.

This report present how apparel industry leaders have made changes to their purchasing practices
– and even their corporate structures – in continued efforts to improve working conditions in
factories and to reap the benefits of having an effectively managed supply chain. We look at
changes in corporate culture, designing and buying, forecasting, production management, and
pricing.

Corporate Culture

Leaders in the apparel industry recognized that if compliance is a division unto itself, then it
functions alone. Integrating corporate responsibility and sustainability throughout the supply
chain, instead of as a separate “add-on” has significant impacts on compliance and cost-savings.
Linking factory performance to headquarter staff’s annual reviews, and training management and
staff on compliance issues further integrates responsible practices into corporate culture.
Gap Inc. has begun to tie factory compliance to performance of production personnel at the Vice
President and above levels.

In order to evaluate corporate staff and management on compliance issues, training is necessary.
Staff must understand the “bigger picture” of the true and total cost of bringing goods to market.
To enhance training within the brands, Gap Inc. is using simulations in which trainees “have to
make decisions and see the impact of the downstream affects of their decisions.” These trainings
are offered to new hires and in the development of new managers.

Gap Inc. : Supply Chain Analysis 21

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Designers and Buyers

Designers and Buyers are responsible for one of the most dramatic causes of compliance
violations –last minute changes to either the design or quantity of an item. The last-minute nature
of their decisions is intricately related to the essence of fashion. The need to be on the cutting-
edge pushes designers and buyers to want to make changes to designs, trims, quantities, and
colors as close to market as possible in order to respond to the latest trends.

Designers

Designers at Gap Inc. and other companies are “in the market looking at what is going to be the
next big thing and building products based on those inputs.” In order to avoid last-minute design
changes, Gap Inc. has created an “orchestrated dance where every day is mapped with the tasks
to bring the product to market. The design team works within the calendar. There is a checklist
of who does what and when. The designers are familiar with the vendor base and its capabilities.
The production team sits with them and educates and guides them from the standpoint of ‘yes,
you want to make this sweater, but we can only make it for December, not November’.” By
implementing this element of production capability into the design process, designers are not
creating pieces that cannot be produced within a reasonable schedule.

Buyers

The two primary areas where buying decisions have an impact on compliance are initial sourcing
decisions and last minute changes. Supplier reviews help to both inform buyers of factory
capacity and identify order patterns that have a negative impact on compliance. Gap Inc. found
that in pre-screening factories “most capacity analysis is focused on quantity, not capability” and
that both need to be taken into account. To help avoid overbooking factory capacity when a
number of Gap Inc.’s brands are sourcing from the same factory, the company noted that “it had
recently developed a tool that should help it gain better visibility across multiple business units

Gap Inc. : Supply Chain Analysis 22

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

to its total sourcing picture with a vendor. That visibility will help facilitate coordination so that
vendor can better manage its production.”

All of the above practices inform buyers’ initial sourcing decisions from factories and facilitate
those orders being executed in a timely, high-quality fashion. Another practice buyers can
modify to improve purchasing practices is last-minute changes. Last-minute changes shorten the
available manufacturing production time and force suppliers into an often-untenable situation
because they want to meet the needs of the brands, but have limited time to do so. As a result,
there is a risk that workers could be forced to work excessive overtime to meet deadlines and not
receive an overtime premium because the buyer wants the change for no additional charge, even
if this violates the vendor agreements. To reduce these strains on suppliers, Gap Inc. is
implementing a new “social responsibility training to all production, sourcing, and merchant
teams where we focus on how to make decisions better and differently that affect the workers in
a positive way.”

Forecasting

Some of the challenge for buyers is a function of the accuracy (or inaccuracy) of forecasting.
Forecasting is an art as much as it is a science – and no leaders in the apparel industry have a
guaranteed system for forecasting demand for designs, quantities, sizes, or colors. Forecasters –
like designers and buyers – also benefit from last-minute decisions because it allows them to
amass more intelligence from the market and incorporate current data into their calculations.

Gap Inc. is testing a new forecasting tool that “takes us to a more micro level and breaks it out
more finitely to better plan capacity and resources which will, in turn, improve everything that
goes into manufacturing.” Today, forecasting is seasonal, but the tool will enable them to “give
suppliers monthly numbers and also get to the level of women’s tops and women’s bottoms
instead of women’s units.”

Gap Inc. : Supply Chain Analysis 23

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Production Management

Technology enables brands to implement management tools that improve communication and
transparency throughout the product life cycle – from designing through sample-making, order
placement, production planning, workflow management, sample approvals, and tracking of
shipment documentation. Leading brands are using web-based technology, capacity
management, and scorecards to manage the production cycle.

Gap Inc. is in the process of doing a “life cycle analysis that identifies key decision-making
points for which we can provide guidance and coaching that should result in improved decision-
making that will affect the workers in a positive way. We are coming up with more formalized
ways of teaching the brands to look at total life cycle in order to do their jobs better.”

All brands operate on seasonal demand and there are periods of “peak production” for the
suppliers. Gap Inc. uses technology “to look at seasonal swings ... to look at how to smooth out
production volume, and to determine how they can use a facility during “off”-periods.” Gap Inc.
found that “vendors appreciate assistance in managing production flows and trying to keep lines
full as consistently as possible.”

Scorecards are used for pre-evaluations of facilities, capturing the technical capabilities of
suppliers, tracking the quality of product produced, monitoring customer service, encouraging
innovation, as well as tracking adherence to codes of conduct. They also help raise a factory’s
awareness about how it is or is not meeting key performance indicators set by brands. Gap Inc.
and others are beginning to use scorecards to “demonstrate to vendors that good performers get rewarded and get
our business. Gap Inc. and others are beginning to use scorecards to “demonstrate to vendors that
good performers get rewarded and get our business.

Pricing/ Costing

Buyers are under pressure to earn the highest possible margins on their product lines.
Traditionally, many brand buyers would determine the price they believe retailers will pay for a

Gap Inc. : Supply Chain Analysis 24

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

product, subtract the profit they want to earn and their shipping costs, and then calculate the
product-cost they are willing to pay their suppliers. Because the prices for raw materials,
overhead, and logistics are often perceived as fixed, without a product management, or lifecycle,
approach to pricing, suppliers often resort to meeting buyers’ demands by squeezing the variable
costs they control – including wages, benefits, and working conditions. This has frequently
resulted in wages, labor standards, and environmental health and safety protocols being
compromised.

Gap Inc. utilizes a “component costing system that sources fabrics and trims more efficiently
and uses them more efficiently to get better at getting to the cost of the product with better
quality at the same time.”

Gap Inc. : Supply Chain Analysis 25

 International Science Congress Association
www.isca.in , www.isca.co.in , www.isca.net.in , www.isca.net.co , www.isca.me

Corresponding Author’s Profile

Prof. Dr. Rizwan Raheem Ahmed

Professor (Department of Business Administration & Commerce)

E-mail: [email protected]&[email protected]

Tel: +92 (300) 829-3560& +92 (321) 840-0465

Dr. Rizwan Raheem Ahmed holds B.Sc. (Hons.), M.Sc. in Applied Statistics and Master of Science (MAS)
in Human Resource Management from University of Karachi. He also earned MBA (Marketing) from PAF-
KIET and MBA (General Management) from Institute of Business Administration, Karachi. He also holds
MS (Management Sciences) from SZABIST and M.Phil. (Financial Economics) from Hamdard University,
Karachi. Dr. Rizwan earned his Ph.D. in Pharmaceutical Marketing from Hamdard University, Karachi.

Dr. Rizwan Raheem Ahmed carries more than 19 years of Professional Experience at Senior Management
Positions in Sales and Marketing with prestigious National & Multinational Organizations in Pharmaceutical
Industry. He has been associated with Indus University since September 2013 as Professor for Business
Administration & Commerce department. He has been visiting Faculty for SZABIST for several years.
More than 35 Publications (Peer reviewed research articles) are on his credit in reputed National &
international Journals including ISI Thomson Reuters indexed & impact factor Journals also. He is also an
author of several News articles, which have published in DAWN, Karachi and Business Recorder, Karachi.

He has attended several international conferences on Pharmaceutical Marketing, and distinct therapeutic
classes of different Medical Specialties in China, Russia, United States, United Kingdoms, Italy,
Netherlands, Brazil, Malaysia, Thailand, Singapore, Jordan, UAE, Sweden, Brazil and other parts of the
Globe.

Gap Inc. : Supply Chain Analysis 26