BY DAVID MALONEY, CHIEF EDITOR
CONVEYORS AND SORTATION
E-COMMERCE IS HERE TO STAY. IF THERE WERE ANY DOUBT ABOUT
that, the more than $100 billion spent online this past holiday season should
be proof that consumers like the convenience of shopping anytime and from
anywhere.
No retailer wants to be left out of the digital marketplace, so most have been
steadily increasing investments in their online presence. And as more volume
shifts to e-commerce orders, these retailers are adjusting their supply chains
accordingly. Such is the case with American Eagle Outfitters (AE). AE is one of
the nation’s leading apparel retailers, offering trendy merchandise through more
than 1,000 stores with its American Eagle and Aerie brands. It also operates a
thriving e-commerce business. It filled its first direct-to-consumer orders in
1998 through ae.com and today, serves customers in more than 80 countries.
To keep up with steady growth and to adjust to changing retail dynamics,
American Eagle is in the process of revamping its U.S. distribution network.
Traditionally, it has served stores in the eastern portion of the country from a
DC in Warrendale, Pa. (near company headquarters in Pittsburgh), while supplying stores in the west from a facility in Ottawa, Kan. For online orders, the
company used a separate fulfillment facility in Kansas.
But that’s all changing. AE recently opened a new distribution center in Hazle
Township, Pa., that’s designed to support both stores and online orders. The
Hazle facility, which offers easy access to major interstate highways, has already
materialhandlingupdate
In a departure from
traditional practice,
American Eagle Outfitters
designed its new
automated fulfillment
center to handle both
store replenishment and
direct-to-consumer orders
from the same inventory.
Fashion forward
P
H
OT
O
S
C
O
U
R
T
E
S
Y
O
F
R
I
C
H
B
AN
I
C
K
P
H
OT
O
G
R
AP
H
Y
