In taking control of e-commerce delivery, American Eagle also opted to include other retailers.
While it was not an easy decision, involving nearly half of one billion dollars of committed capital, the American Eagle board came around to the need to control its destiny by controlling its supply chain.Airterra was small and not a major integration challenge.
Ideally, a supply chain manager would like to fully control all the operation, have the lowest costs, and the highest geographical coverage possible. Unfortunately, that is never possible.
Global supply chains have provided consumers with low-cost products of endless variety. But, more recently, supply chains have buckled under their own weight and need more than marginal improvements to survive. Among the challenges is the threat of dominance by one or a few e-commerce giants — Amazon most of all. The experience of American Eagle and Quiet suggests an alternative future in which sharing supply chain assets allows small companies a fighting chance against the e-commerce behemoths.
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