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Organizations that thought they had diversified their supply chains, done all the necessary supplier due diligence, and understood where their vulnerabilities were got a rude awakening in 2020: Their supply chains were actually a hot mess and costing them money and competitive advantages.
In response, many companies, like American Eagle Outfitters, began looking to M&A transactions to boost their supply-chain capabilities and resiliency. The clothing retailer acquired Quiet Logistics, a fulfillment technology company, in 2021. The deal gave AEO access to Quiet Logistics’ network of local distribution centers throughout the US, streamlined inventory management, and sped up customer delivery times.
“An important pillar of our strategy is transforming our supply chain to create greater agility, speed, and diversification,” Jay Schottenstein, AEO’s executive chairman and CEO said in a statement after the $350 million deal was announced.
Creating supply-chain flexibility, speed, and transparency has taken on a new urgency post-pandemic for organizations of all types.
