Sourcing Journal reports:
Supply chain guru Shekar Natarajan has departed his role at Quiet Platforms after playing a key role in developing the AEO logistics subsidiary that launched publicly last August. The firm said it is looking to “pull back on expenses to reset the business” as “it has not achieved the plans we envisioned.”
“American Eagle Outfitters is committed to the continued transformation of our supply chain, and Quiet Platforms plays an important role in that strategy as we work to achieve increased profitability,” the company said in a statement Tuesday. The software tool has been “tremendously beneficial,” providing “much needed distribution and fulfillment capacity to grow our industry-leading brands” like Peloton, Steve Madden and manufacturer Li & Fung, but the company is ramping down investment moving forward as it has not delivered financially. “This is necessary to improve profitability, particularly given prevailing macro headwinds,” AEO said.
Natarajan, who also served as AEO’s chief supply chain officer, built out the company’s in-house logistics solution after it acquired Seattle startup AirTerra in August 2021. Founded by Nordstrom and Walmart alum Brent Beabout, the platform offered efficient and affordable shipping options to mid-tier retailers and brands, allowing them to compete with corporate heavy hitters. It aggregated packages from multiple shippers through its own metropolitan networks, working with regional carriers and USPS on last-mile delivery. Months later, AEO acquired a network of in-market fulfillment centers across Boston, Chicago, Los Angeles, Dallas, St. Louis and Jacksonville dubbed Quiet Logistics…
Here’s the link to the Sourcing Journal piece, part of which can also be read here.