American Eagle’s logistics arm Quiet Platforms is now handling a third of the retailer’s direct orders as the company makes progress scaling the service.
The retailer is leveraging Quiet across the American Eagle and Aerie brands, with COO Michael Rempell saying the company is “fulfilling orders faster and with fewer shipments.” Quiet has also helped American Eagle lower fulfillment costs and speed deliveries of e-commerce shipments. Approximately 75% of online orders reached customers within 3 days of checkout in the second quarter.
“We even see room for this rate to move higher as Quiet Platforms expands its footprint to service additional markets next year which should enable nationwide next-day services,” said Rempell.
American Eagle announced last month the addition of more markets for its customers with access to more than 40 national, regional and local carriers. On Thursday, the company said it partnered with supply chain platform FourKites to offer shippers visibility into inventory, assets and shipments.
“We have taken several steps including expanding the edge assortment in select facilities, refining inventory levels by facility, and increasing the robustness and capability of our transfer network,” a spokesperson for Quiet Platforms said in an email to Supply Chain Dive.
The retailer is absorbing some cost as it works to scale the service.
American Eagle posted a $9 million loss from Quiet, noting in its earnings report that the service impacted the company’s overall profits “as we integrate and ramp up business.” Capital expenditures on Quiet totaled $7 million for the 26 weeks ending July 30.
Losses improved from Q1, when the company reported a $12 million impact from Quiet.
“As we continue to ramp up the business, we expect losses to continue to narrow sequentially each quarter,” the spokesperson said in an email.
via https://www.aiupnow.com
Alejandra Salgado, Khareem Sudlow
