Distribution Services and Category Management Systems for Major UK Retailer
TORONTO, March 16 /PRNewswire/ - Cinram International Inc, one of the world's largest manufacturers and distributors of packaged media, is delighted to announce its appointment by Wm Morrisons Supermarkets PLC as sole provider of storage and distribution services for the music, video and games categories in the United Kingdom.
The agreement, which starts in September, will require Cinram to make products retail-ready, including stickering and security tagging of products, utilizing best in class systems and processes for efficient and effective supply chain operations. In addition, Cinram has been chosen to implement a retail services solution, its Vision™ software, to help Morrisons manage and control its inventory, and balance supply with demand.
Wm Morrison is the fourth largest grocery retailer in the UK, charting a 7% growth in sales over the last year. The company attributes its continuing success to strong new branding under the concept of 'Different and Better Than Ever' together with its strategy of both developing close relationships with food producers and increasing the proportion of food prepared in-store. 2011 is expected to show further growth as the company has already announced significant plans for expansion across floor space, food production and internet retailing by 2014.
Cinram specializes in innovative approaches to entertainment distribution, whether distributing physical media such as games, DVD and Blu-ray, or digital entertainment solutions. Cinram's business intelligence tool, Vision™, is a category management solution which Morrisons is embracing in order to manage its MVG products. Vision™ software captures information on buying patterns, analyzes the data and enables demand planning and forecasting for each point within the supply chain. Re-ordering is automated and also includes Vendor Managed Inventory services. Cinram's Vision™ tool has produced a significant uplift in results for its clients, delivering a 19% increase in sales to one customer, a 25% reduction in retail inventory to another and a 40% decrease in returns over similar stores and periods to a third.
"We are looking forward to providing Morrisons with market-leading distribution services for all their entertainment products. Additionally, we are certain that Cinram's Vision™ solution will provide invaluable support to Morrisons in growing this important retail category," comments Steve Brown, CEO of Cinram International Inc, "I am proud of the work put forth by both our Distribution and Retail Services teams in tailoring a winning solution for Morrisons. We're excited to get started."
Neil Ballantine, Managing Director of Cinram UK comments, "We are delighted that Morrisons has selected Cinram to support its business needs. This contract allows Cinram to demonstrate its end to end capability in supporting retail operations and bring about significant supply chain efficiencies for Morrisons."
Cinram International Inc, an indirect, wholly-owned subsidiary of the Fund, is one of the world's largest providers of pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, audio CDs, and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. Cinram also now provides distribution and logistics services to the telecommunications industry in North America through its wireless subsidiaries. The Fund's units are listed on the Toronto Stock Exchange under the symbol CRW.UN. The Cinram group of companies now also incorporates 1K Studios, a digital media firm based in Los Angeles specializing in building enhanced consumer experiences for movies, TV shows, music, books and games. For more information, visit www.cinram.com.
Certain statements included in this release constitute "forward-looking statements" within the meaning of applicable securities laws. Such forward-looking statements include statements concerning the possible effects of the transactions described herein, and the likelihood of their successful completion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund, or results of the multimedia duplication/ replication industry, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, among others, the following: the Fund's ability to retain major customers; general economic and business conditions, which will, among other things, impact the demand for the Fund's products and services; multimedia replication industry conditions and capacity; the ability of the Fund to implement its business strategy; the Fund's ability to invest successfully in new technologies and other factors which are described in the Fund's filings with the securities commissions. These risks may affect the achievement of the expected results of the transactions described herein. There can be no assurance that the said transactions will be successfully completed or that, if completed, the expected consequences will result in whole or in part, and the deviations from such expectations may be material.
SOURCE Cinram International Income Fund