Sunday, March 05, 2006

Gap's poor results and changes in the supply chain

Yesterday, I read in the Financial Times that Gap, giant american retailer, has shown poor results and its sales has dropped 11%. Today, I saw another intersting piece about their immediate changes in company's supply chain: Gap's supply chain officer to leave !

The departure of Cullen is the latest in a string of high-level executives to leave the specialty apparel retailer. The interesting part is that the company doesn't plan to replace the chief supply chain officer post. Instead, the company said it will separate the sourcing and logistics functions to better align the global sourcing team with the brands, and logistics with inventory planning and distribution.

Gap also said that Stan Raggio, a former supply chain executive with the company, will return from retirement to lead its sourcing division as senior vice president of sourcing and vendor development. Raggio will report directly to Chief Executive Paul Pressler and will work closely with the company's operating units, Gap said. Raggio, who worked at Gap from 1991 to 2002, will rejoin the company on March 16. (OK, BACK TO THE ROOTS ! )

The company's logistics division, which formerly reported to Cullen, will continue to be led by senior vice president Colin Funnell, who will now report to Byron Pollitt, Gap's chief financial officer.