One of the many top retailers, American Eagle is planning to expand the logistics operation after the supply chain disruption in the year 2021.

American Eagle outfitters, is an apparel brand which is best known for its lifestyle, clothing and accessories, is looking after its supply chain companies. The retailer bought Quiet Logistics for $360 million, which is an e-commerce fulfillment company. This is the second logistics company that has been bought by American Eagle by the end of year 2021, after combining AirTerra in the month of May which is also an e-commerce delivery.

One of the many top retailers, American Eagle is planning to expand the logistics operation after the supply chain disruption in the year 2021. Inflation in the shipping rates and long delays on ports have resulted in companies taking actions to rearrange measures like chartering coal ships in order to transport the ingredients of soda, to keep the inventories stocked.

After facing the chaos businesses have dealt with during the holiday season, they are now supporting the flexible supply chains, so they do not have to face the same level of chaos again. The acquisition made by American Eagle is an example of how the small retailers strategically match up with the well-oiled logistics machinery of retail competitors like Walmart and Amazon.

American

The acquisition made by American Eagle is an example of how the small retailers
strategically match up with the well-oiled logistics machinery of retail competitors like Walmart and Amazon.

American Eagle is planning to keep its supply chain companies, AirTerra and Quiet Logistics separate and independent operating companies, to serve various other clients. Quiet Logistics operated e-commerce fulfillment centres in the US, covering 50 companies in 6 major cities, including American Eagle. On the other hand, AirTerra had to ship even single packages before being bought by American Eagle, but now the company plans to expand the area of its business. The idea by American Eagle for AirTerra and Quiet Logistics will help both the companies to grow and expand comparatively better than they would grow if the companies only handled American Eagle’s supply chains. The more the clients, the more it will help the business to grow for AirTerra as well as this will also provide support for American Eagle’s business to boost the economies and transportation benefits.

American Eagle, owning both the firms, not only can soak up the revenue that is generated by both the companies, but it can also prioritize its needs ahead of the other clients so it does not have to face the supply chain disruptions that the whole world is facing at present. A similar strategy was owned by Amazon which has taken up its fulfillment with Amazon services. Amazon has a network of transportation including vans, planes, trucks, etc which help it to serve its third-party retail clients. This strategy has lowered the costs for Amazon to handle its own logistics department. The same benefit has brought American Eagle to the same thought of chance even though it is a comparatively smaller company.

When retail shifts to online mode, supply chains become more important aspects from brand and companies. Before the pandemic, American Eagle’s clothing sales were changing as the in-store purchase got a hold, on the other side, the company gained a great revenue growth as a result of the online sales. As aware, in the year 2020, the world shifted from in-house stores to online mode, which helped American Eagle to get 15% increase in revenue that went from 30% in 2019 to 45% in the year 2020.

Eagle

As aware, in the year 2020, the world shifted from in-house stores to online mode, which helped American Eagle to get 15% increase in revenue that went from 30% in 2019 to 45% in the year 2020.

%d bloggers like this: