Quiet Logistics Explained

Quiet Logistics
Type:Subsidiary
Industry:Third-party logistics
Founders:Bruce Welty
Michael Johnson
Foundation:, in Andover, Massachusetts, U.S.
Location City:Devens, Massachusetts
Location Country:U.S.
Area Served:Worldwide
Key People:Brian Lemerise (president)
Bruce Welty (CEO)
Services:E-commerce order fulfillment, Returns management
Num Employees:1250
Parent:American Eagle Outfitters

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. Quiet was the first third-party logistics company to use Kiva Systems' warehouse robotics system.[4] 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.[5] [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.

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 its own robot that is both system-directed and able to interact with fulfillment center employees dispersed throughout the storage areas. In 2015, Quiet spun off its robotics division as a separate company, located in Wilmington, Massachusetts.[10] [11] Quiet continues to use the Locus robots, now marketed as LocusBots, in its facilities.

"Fulfillment centers" and geographic expansion

Quiet Logistics operates two "fulfillment centers" 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. Previous customers include Gilt and Zara. Current customers include Away, Bonobos and Love Your Melon.

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]

Notes and References

  1. News: 3PLs & Carriers: At Your Service. Staff writer. 2016-12-29. Inbound Logistics. 2019-01-30. Thomas Publishing Co.
  2. Web site: Chen . Cathleen . 2021-11-02 . American Eagle Outfitters Acquires Quiet Logistics in $350 Million Deal . live . https://web.archive.org/web/20211103234641/https://www.businessoffashion.com/news/retail/american-eagle-outfitters-acquires-quiet-logistics-in-350-million-deal . 2021-11-03 . 2021-11-04 . The Business of Fashion . en-GB.
  3. News: Five things you should know about Bruce Welty. Bray. Hiawatha. 2016-10-28. The Boston Globe. 2019-01-30.
  4. News: Necessity is the mother of invention at Quiet Logistics. Trebilcock. Bob. 2016-05-01. Modern Materials Handling. 2019-01-30.
  5. Book: Simons, Robert. Quiet Logistics (A). Kindred. Natalie. Harvard Business School. 2015-05-16. 2.
  6. Web site: Warehouse Equipment Innovations: The How's and Why's of Robotics in the Warehouse. Wunderlin. Amy. 2017-03-22. www.sdcexec.com. Supply and Demand Chain Executive. 2019-01-30.
  7. News: March of the Machines. Kroft. Steve. 2013-01-13. CBS 60 Minutes.
  8. News: Acquisition puts Amazon rivals in awkward spot. Kirsner. Scott. 2013-01-13. The Boston Globe. 2019-01-29.
  9. Web site: The Future of Robot Labor is Unfolding in Shipping Warehouses. Matsakis. Louise. 2016-09-19. www.motherboard.vice.com. Vice Media LLC. 2019-01-30.
  10. News: Locus Robotics Raises $25 Million in Round Led by Scale Venture Partners. Smith. Jennifer. 2017-11-20. The Wall Street Journal. 2019-01-29.
  11. News: Rethinking Warehouse Fulfillment - With Robots. Zaczkiewicz. Arthur. 2017-03-09. Women's Wear Daily. 2019-01-30.
  12. News: Quiet Logistics opens Midwest hub for e-commerce fulfillment. DC Velocity Staff. 2017-04-21. DC Velocity.
  13. News: E-commerce distributor Quiet Logistics announces plans for Hazelwood facility. Gray. Bryce. 2017-04-21. St. Louis Post-Dispatch. 2019-01-30.
  14. News: Quiet Logistics opens new warehouse. MMH Staff. 2018-11-20. Modern Materials Handling. 2019-01-30.
  15. Web site: Berger . Paul . 2021-11-02 . American Eagle Outfitters to Buy Quiet Logistics for $350 Million . live . https://web.archive.org/web/20211104003728/https://www.wsj.com/articles/american-eagle-outfitters-to-buy-quiet-logistics-for-350-million-11635850920 . 2021-11-04 . 2021-11-03 . Wall Street Journal . en-US.
  16. Web site: American Eagle Outfitters Completes Quiet Logistics Acquisition. Textile World. Borneman . Jim. 2021-12-31. 2022-01-03.