A view of the industry through the
eyes of a chain buyer.
Michaels Vendor Partner Awards
Winners produced better sales, higher margins.
Press release from Michaels (September 5, 2005)
For the last several years, Michaels Stores, Inc. has recognized select vendors for their outstanding contributions to our growth. This year, as we turn our focus to achieve closer company to company partnerships, we recognize those vendors who have demonstrated exemplary effort to accomplish this goal.
We are pleased to announce this year’s Vendor Partners of the Year!
BP Industries worked closely with their Buyer to develop new and exciting merchandise programs in Wall Frames, Tabletop Frames, and Collectible Cases that resulted in a 12% increase in sales and a 120 basis point improvement in margin. With a 20% reduction in inventory compared to last year, they still achieved a 95%
in-stock rate. BP Industries exhibits solid company-to-company relationships and performs to a 99.9% accuracy rate in their shipments to all our distribution centers. This vendor also found many efficiencies in the manufacturing of their product lines and passed these savings on to Michaels.
Inspiring new programs is one of the goals we have set for our vendor partners. Morex Corporation looked around the corner to develop an innovative program that was unique to their industry, enabling Michaels to gain a competitive advantage in the ribbon category by introducing the Bobbin Ribbon Program, which has produced over 2 million units annually, a 10% sales increase, and has improved margin by 50 basis points. In addition, they were very responsive when Michaels was in need of merchandise to fill in programs that could not be fulfilled by other existing vendors. Their company-to-company partnership helped them to satisfy our merchandise needs quickly, efficiently, and without supply chain errors. Congratulations to Morex Corporation for a true partnership with Michaels Stores.
Designs For All Seasons
This vendor delivered innovative merchandise programs by shopping the world over for trends and incorporating them into volume producing items for Michaels. They developed products that were unique and differentiated Michaels from the mass channel retail stores. Always keeping Michaels’ goals in mind, Designs For All Seasons provided exceptional Christmas programs at the lowest possible cost, increased their sales by 29% and their margin by 360 basis points in the past year. Working in collaboration with their Michaels Supply Chain partners, they were 100% accurate in their shipments last year. Congratulations to Designs for All Seasons for their Vendor Partnership of the Year Award.
Spinrite Limited stands out due to their strong commitment to the Michaels team. They have an outstanding working relationship with our merchants and provide creativity and inspirational ideas for our merchandise programs, always working hard to make sure Michaels is the first to see innovative new yarn that differentiates us from the mass channel. This company’s sales are up 301% and their margins have increased 700 basis points. With a 99.8% accuracy rate in their shipments to all our distribution centers, Spinrite Limited is a complete vendor because they support all our merchandising objectives, marketing efforts, and supply chain initiatives.
(Note: To read previous "Benny" columns, click on the titles in the right-hand column.)