Quiet Logistics

Quiet Logistics
Company typeSubsidiary
IndustryThird-party logistics
Founded2009; 16 years ago (2009), in Andover, Massachusetts, U.S.
FoundersBruce Welty
Michael Johnson
Headquarters
Devens, Massachusetts
,
U.S.
Area served
Worldwide
Key people
Brian Lemerise (president)
Bruce Welty (CEO)
ServicesE-commerce order fulfillment, Returns management
Number of employees
1250
ParentAmerican Eagle Outfitters
Websitewww.quietlogistics.com

Quiet Logistics is a third-party logistics (3PL) company headquartered in Devens, Massachusetts. Quiet specializes in providing order fulfillment and returns management services to e-commerce retailers.[1] In November 2021, American Eagle Outfitters announced that it would acquire Quiet Logistics for $350 million in cash.[2]

Early years

Quiet Logistics was co-founded in 2009 by Bruce Welty and Michael Johnson.[3] Both have backgrounds in supply chain management, having co-founded, in 1987, warehouse management system (WMS) vendor Allpoints Systems, in Norwood, Massachusetts, and, in 2003, Scenic Technologies Corp.[4] Quiet was the first third-party logistics company to use Kiva Systems' warehouse robotics system.[5] Kiva's system-directed robots transport in-bound and out-bound products throughout a warehouse, reducing labor costs and increasing inventory and order-fulfillment accuracy.[4][6] In 2013, Quiet's use of this system was examined by Steve Kroft in a CBS 60 Minutes segment titled, March of the Machines.[7] And in 2015, Quiet's operating model, including its early adoption of Kiva's robots, was the subject of a Harvard Business Review case study.[4]

Creation of Locus Robotics

In 2014, Quiet Logistics lost access to Kiva's robotics system when Amazon, who had acquired Kiva Systems in 2012 for $775MM, informed Quiet that use of the system was being limited to Amazon's own operations and, therefore, its contract with Quiet would not be renewed.[8][9] Unable to find a replacement robotics system that met its requirements, Quiet designed, built, and integrated with its warehouse management system[5][9] its own robot that is both system-directed and able to interact with fulfillment center employees dispersed throughout the storage areas.[9][10][11] In 2015, Quiet spun off its robotics division as a separate company, located in Wilmington, Massachusetts.[10][6][11] Quiet continues to use the Locus robots, now marketed as LocusBots, in its facilities.[11]

"Fulfillment centers" and geographic expansion

Quiet Logistics operates two "fulfillment centers"[clarification needed] in Devens, Massachusetts, and one in Hazelwood, Missouri.[12][13] Quiet's newest facility, measuring 355,000 square feet, opened in 2018 in Devens.[14]

Customers

Quiet Logistics focuses primarily on e-commerce retailers of fashion, fashion accessories, and home goods.[11] Previous customers include Gilt and Zara. Current customers include Away, Bonobos and Love Your Melon.[11]

Acquisition by American Eagle Outfitters

American Eagle Outfitters announced a $350 million acquisition of Quiet Logistics on November 2, 2021. The company's Chief operating officer stated the company would remain independent.[15] The acquisition was completed on December 29, 2021.[16]

References

  1. ^ Staff writer (December 29, 2016). "3PLs & Carriers: At Your Service". Inbound Logistics. Thomas Publishing Co. Retrieved January 30, 2019.
  2. ^ Chen, Cathleen (November 2, 2021). "American Eagle Outfitters Acquires Quiet Logistics in $350 Million Deal". The Business of Fashion. Archived from the original on November 3, 2021. Retrieved November 4, 2021.
  3. ^ Bray, Hiawatha (October 28, 2016). "Five things you should know about Bruce Welty". The Boston Globe. Retrieved January 30, 2019.
  4. ^ a b c Simons, Robert; Kindred, Natalie (May 16, 2015). Quiet Logistics (A). Harvard Business School. p. 2.
  5. ^ a b Trebilcock, Bob (May 1, 2016). "Necessity is the mother of invention at Quiet Logistics". Modern Materials Handling. Retrieved January 30, 2019.
  6. ^ a b Wunderlin, Amy (March 22, 2017). "Warehouse Equipment Innovations: The How's and Why's of Robotics in the Warehouse". www.sdcexec.com. Supply and Demand Chain Executive. Retrieved January 30, 2019.
  7. ^ Kroft, Steve (January 13, 2013). "March of the Machines". CBS 60 Minutes.
  8. ^ Kirsner, Scott (January 13, 2013). "Acquisition puts Amazon rivals in awkward spot". The Boston Globe. Retrieved January 29, 2019.
  9. ^ a b c Matsakis, Louise (September 19, 2016). "The Future of Robot Labor is Unfolding in Shipping Warehouses". www.motherboard.vice.com. Vice Media LLC. Retrieved January 30, 2019.
  10. ^ a b Smith, Jennifer (November 20, 2017). "Locus Robotics Raises $25 Million in Round Led by Scale Venture Partners". The Wall Street Journal. Retrieved January 29, 2019.
  11. ^ a b c d e Zaczkiewicz, Arthur (March 9, 2017). "Rethinking Warehouse Fulfillment - With Robots". Women's Wear Daily. Retrieved January 30, 2019.
  12. ^ DC Velocity Staff (April 21, 2017). "Quiet Logistics opens Midwest hub for e-commerce fulfillment". DC Velocity.
  13. ^ Gray, Bryce (April 21, 2017). "E-commerce distributor Quiet Logistics announces plans for Hazelwood facility". St. Louis Post-Dispatch. Retrieved January 30, 2019.
  14. ^ MMH Staff (November 20, 2018). "Quiet Logistics opens new warehouse". Modern Materials Handling. Retrieved January 30, 2019.
  15. ^ Berger, Paul (November 2, 2021). "American Eagle Outfitters to Buy Quiet Logistics for $350 Million". Wall Street Journal. Archived from the original on November 4, 2021. Retrieved November 3, 2021.
  16. ^ Borneman, Jim (December 31, 2021). "American Eagle Outfitters Completes Quiet Logistics Acquisition". Textile World. Retrieved January 3, 2022.