Aarons 2006 Annual Report Download - page 10

8
Mitch Paull
Senior Vice President, Merchandising and Logistics,
Aaron’s Sales & Lease Ownership Division
Years with Company: 15
At Aaron’s, our marketing is centered around “making dreams come true.” This mission is at the
forefront of our thoughts when we go
to market to find products. We strive to
offer the right product at the right price
at the right time. This means that we
source high-quality, brand-name products
from across the globe and use our buying
power and logistical infrastructure to bring those dream
products home to our customers at the lowest possible
cost. Our employees are dedicated to working hand in hand
with our vendors, sourcing over a half a billion dollars in
product each year. Since much of our product comes from
overseas, we are constantly monitoring the most cost-
effective and efficient way to move goods across countries
and oceans. Often, with furniture, for example, logistics
can end up being half the cost of the product.
Forecasting is enormously important. Having the right
product at the right price at the wrong time will fail every
time. To ensure that our timing is right, we give our vendors
complete visibility into our product flow with activity
monitored daily across all of our regions. In areas such
as computers and electronics where the markets shift
constantly, our vendor relationships help keep us informed,
allowing us to adapt quickly to shifts in consumer prefer-
ences and new products. With regard to furniture, being
able to marry the internal manufacturing capacity of our
MacTavish Furniture division with our outside vendors
gives us an edge in a product category where long lead
times can be challenging.
We have 16 fulfillment centers with a fleet of over 100
vehicles that work extremely closely with our stores. All of
our fulfillment centers operate with a software system that
Appliances
15%
Furniture
33%
Computers
15%
Other 4%
Electronics
33%
Company-Operated Sales & Lease
Ownership Store Lease Revenues