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You are the buyer of Mens sportswear for Macys. You are preparing to go to market and work with the following two vendors: Polo Player
You are the buyer of Mens sportswear for Macys. You are preparing to go to market and work with the following two vendors:
Polo Player
Marlin Fein
Here are the 2017 end of year sales and gross margin profitability results:
Vendor | Polo Player | Marlin Fein |
Actual Sales | $17,975,000 | $9,450,000 |
Planned Sales | $17,200,000 | $10,985,000 |
Actual MD % | 41.6% | 48.5% |
Planned MD % | 42.5% | 42.0% |
Actual GM % | 45.2% | 40.5% |
Planned GM % | 44.5% | 44.0% |
Late shipment percentage | 10.0% | 20.0% |
You will need to formulate a strategy and address the following points:
- Which vendors should get more of your open-to-buy for fall? Which vendors could potentially get less of your open-to-buy? Why?
- After analyzing their business and shipping performance, you will need negotiate with the vendors assistance to improve their sales, gross margin and shipping performance. As the buyer, how will you negotiate this with each vendor? What will you ask the vendor for and why?
- Present your case to the vendors. Explain why you need for them to help you. If you do not secure any assistance, what other actions can you take as the buyer?
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