Michaels Craft Stores is the largest arts and crafts retailer in the United States and around the world. Its CEO, Michael Rouleau wants the chain expand 1,000 stores by 2006. The key constraint is the lack of sophistication in Michaels’ supplier base, which will be made from more than 1,000 suppliers, many of which are small, creative businesses with little computer knowledge or logistics. As a result, the cost of running Michaels’ supply chain are high. Describes the company’s efforts to build the s … Read more »

Michaels Craft Stores is the largest arts and crafts retailer in the United States and around the world. Its CEO, Michael Rouleau wants the chain expand 1,000 stores by 2006. The key constraint is the lack of sophistication in Michaels’ supplier base, which will be made from more than 1,000 suppliers, many of which are small, creative businesses with little computer knowledge or logistics. As a result, the cost of running Michaels’ supply chain are high. Describes the company’s efforts to finesse its suppliers through educational training Flows manufacturer, supplier build teaching adopted as state-of-the-art method for improved efficiency in their supply channel.
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from
Anne Coughlan,
Lindsey M. Piegza
Source: Kellogg School of Management
18 pages.
Release Date: 1 January 2004. Prod #: KEL036-PDF-ENG
Michaels Craft Stores: Integrated Channel Management and Vendor-Retailer Relations HBR case solution