The solution
In a Fast Company Q&A with Edward Hertzman, American Eagle Outfitters EVP and chief supply chain officer Shekar Natarajan argues that money in fashion is made in the back end: runway looks get the attention, but efficient production and delivery separate winners from losers — and the current supply chain is severely underfunded and in need of massive retooling.
His solution is a platform all companies can use to share supply-chain assets and resources. After AEO acquired several logistics companies in 2021, Natarajan began building a shared back-end environment other companies could access. As of May 2022 the network counted 67 retailers, including AEO, plus 30 logistics partners.
Early results, per the article: users delivered e-commerce orders to end consumers one and a half days faster and cut parcel miles traveled by 10%. Natarajan says the model is designed to lower costs over time for everyone in the network, help them operate more sustainably, and let brands and retailers better compete with the world's largest companies — at least on logistics.
Why it worked
The moat gets reframed: capacity idles at one brand but flows at 67 — sharing converts dead capacity into revenue.
Consolidated parcels cut parcel miles 10%, so the sustainability gain is mechanical, not a program.
It answers the scale gap: mid-size retailers get giant-class logistics without giant-class volume.
What can be applied
Shared infrastructure turns fixed costs into a network: when rivals co-invest in the back end, each gets scale nobody could justify alone — and the sustainability win is mechanical.
Aftermath
As of May 2022 the platform counted 67 retailers and 30 logistics partners; Natarajan says costs and sustainability keep improving as the network densifies. (Interview figures are self-reported.)
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