Distributors Raise the Bar
When the ESOP was established in 2000, American also created its Preferred Vendor Network program. "This concept works to increase vendors' exposure to American's more than 500 sales associates and customers to grow their businesses," explained Zavadil. "Those at the Patriot level offer a 5 percent prompt pay that goes right into our bottom line to boost the company's stock and help American's employees grow their value. Our goal is to get back to where we were in 1981 when we averaged 4.5 percent prompt pay across the board on our cost of goods. At present, we are back to about 1.9 percent. With the Novation contract, we are looking to get back to a 3 percent to 3.5 percent range. Obviously, it's going to be our vendor partners who are Patriots in the top level who will be the ones whom we support in that program."