Michaels selects LogicSource for print procurement

Share this content:

Arts and crafts retailer Michaels Stores has selected procurement firm LogicSource to manage the company's consolidated five-year, $250-million print-procurement budget. LogicSource will assist Michaels in identifying cost-savings and operation enhancements through 2015.

LogicSource conducted a strategic analysis of Michaels' entire print-production strategy from creative to distribution in February 2010. The Norwalk, Ct.-based firm has used those findings since September to assist in lowering print costs and enhancing production, including boosting Michaels' on-demand printing capabilities, said David Pennino, LogicSource CEO.

The company is now handling all end-to-end procurement, said Tom Brewer, VP of shared services at Michaels.The company produces direct mail, circular inserts, bagstuffers, project sheets, ad signs and POP signage.

Michaels previously worked with Graphix Communications for circular print procurement and Blanks for display, said Brewer. The company also managed fulfillment through a “multitude of companies.”

“We had an in-house team that didn't have the same skill sets as LogicSource,” said Brewer. “We buy and do a lot, but when you get into print, you need experts in the business. When LogicSource brought their proposition to the table, we reviewed what they could do for us and where we could save money. We had a lot of different areas controlling the spend and by working with them, we pull it all under one umbrella.”

The print-procurement team will be composed of seven newly-hired LogicSource employees and current Michaels procurement professionals. Three new LogicSource staffers will handle creative services and four employees at the firm will include buyers, traffickers and one financial analyst. The team will be based at Michaels' Dallas, Texas, headquarters.  

Michaels has an opt-out clause in the contract that allows the retailer to void the deal if LogicSource does not meet service-level agreements on a repeated basis.

“The way the contract is structured, they guarantee they will bottom the market out, and we have the right to audit that with a third party,” said Brewer. He would not be more specific about the contract.

Loading links....
close

Next Article in Production and Printing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here