Like many vertical retailers, American Eagle Outfitters, Inc. (AEO) was running out of space in its two centrally located distribution centers and struggling with DTC responsibilities. Instead of investing in another mega Distribution center, AEO selected Quiet to set up five in-market nodes in Los Angeles, Atlanta, Boston, Chicago, and Dallas to handle fulfillment for DTC customers and store replenishments.
23% to 63%
Inventory regionalization
This omni-channel “edge” logistics network paid off in less than one year and has continued to improve since. In 2022, AEO expanded to include two more in-market nodes in Atlanta and St. Louis, bringing their total count to seven. AEO has strategically improved inventory regionalization from 23% to 63%, while simultaneously shrinking shipments-per-order by over 10%, even as volumes climb. This, combined with reducing average shipping zones, has driven decreased transportation costs by over $1 per package while delivery times improved by nearly 1 day. On top of these important supply chain improvements, regionalized inventory has improved turns and productivity, leading to a significant reduction in out-of-stocks and markdowns.
Quiet’s end-to-end edge services are helping forward-thinking customers to collectively scale volumes by optimizing fulfillment reach, inventory turn and smart shipping solutions.
