American Eagle Outfitters was founded in 1977. Gap was founded in 1969. Both companies have been around for a long time and have evolved substantially since their inception. The most recent development in their story is their strategy regarding logistics. Both companies have taken their logistics operations in-house, and, more recently, have begun offering their logistics platform to other retailers. Let’s look at how this has unfolded and how it fits into the current logistics and supply chain landscape.
American Eagle Outfitters and Quiet Logistics
American Eagle Outfitter’s journey into logistics started with a partnership with Quiet Logistics, a logistics provider. After some time, they announced that they were acquiring Quiet Logistics in December of 2021 and bringing their logistics operations in-house. In 2022 they announced that they were beginning to offer their services to other companies.
Gap and GPS Platform Services
In a similar move, GAP Inc. announced their own logistics division launch through GPS Platform Services earlier this month. The difference is that GAP didn’t have to purchase another existing company to begin offering logistics services. The GPS network is comprised of 13 distribution centers across North America, more than 9 million square feet of warehouse space, and the existing capability to process 1 billion parcels annually. This division will help the retail giant keep up with growing e-commerce demand and create a new stream of revenue.
The GPS Platform Services by Gap Inc. will also offer its services to brands of all sizes. In a LinkedIn post, Kevin Kuntz, the Senior Vice President of Global Logistics Fulfillment at Gap, stated that the platform will be “fast, flexible, and highly automated logistics and fulfillment network…Reach out if you are ready to scale your operations and grow your brand.”
What it means for you
Let’s get one of the most obvious things out of the way first: while many companies would love to handle all their logistics internally, often the sheer amount of capital to either acquire 3PL logistics providers or to invest into building out logistics infrastructure makes doing what American Eagle Outfitters and Gap have done cost prohibitive.
These developments do provide more options to retailers through both Quiet Platforms (American Eagle Outfitters) and GPS Platform Services (Gap) and are worth considering. However, these developments have only come within the last year, and it remains to be seen how well they will function in the long run, so shippers should be sure to do the work to investigate all their options.
Increasingly more and more businesses are branching into the logistics space, taking operations in house and offering their services to outside clients. It’s an interesting time in the world of logistics and transportation, and here at iDrive Logistics we’re keeping a close eye on what’s going on in the industry.
Whether your business is making the leap into e-commerce for the first time or looking to expand your distribution to reach new markets, now may be a great opportunity to begin your search for the right logistics company. iDrive Logistics combines many years of experience in the logistics space with cutting-edge technology to help shippers scale. Check out our website at https://www.idrivelogistics.com/ and reach out for a free consultation on your shipping strategy!