2024

INTEGRATED REPORT

X

Currently viewing: Office supply chain | Next: Office retail presence

OFFICE

SUPPLY
CHAIN

Global logistics and shipping patterns were severely disrupted by the shipping crisis from late in the 2023 calendar year, which resulted in delivery delays of approximately three weeks on traditional shipping routes.

These factors were partially mitigated by building additional shipping lead times into the buying process, moving a portion of Office’s own-brand production to European manufacturers and using alternative shipping routes. However, the re-routing of vessels increased lead times, impacted the reliability of service and significantly increased sea freight rates.

CENTRALISED DISTRIBUTION

Office operates a centralised distribution model from its warehouse in Kilmarnock, Scotland. The lease on the warehouse was extended by 10 years and management initiated a project to re-engineer the facility to improve productivity, create distribution efficiencies and increase capacity. The completion of the storage and returns components of the project have alleviated congestion and enhanced productivity, optimising capacity to manage peak volume processing.

Efficient e-commerce fulfilment is key to Office’s omni-channel offering. An express ‘click & collect’ offering was launched on the Office and Offspring websites in October 2023 to increase convenience for customers, with the facility now available in all UK stand-alone stores.

New contracts for the e-commerce courier service and store distribution service were completed on favourable terms during the period.

RELATIONSHIPS WITH KEY SUPPLIERS

Office is a strategically important retail partner to several of the world’s leading fashion footwear brands. Office continues to build collaborative, strategic partnerships with key brand partners and suppliers, thereby ensuring that good service levels are achieved and that Office is able to secure allocations of the most in-demand product.

Through long-standing trusted relationships, Office has developed a quick response model for its own-brand made-to-order (MTO) footwear. This allows buyers and designers to work on short lead times and to react to trend information and customer demand by making style changes and adjusting order quantities in season.

Office’s European suppliers source all components in the European Union, allowing fast product development and reduced overall lead times. Buyers and designers regularly travel to key sources within Europe and interact with sources in longer-lead destinations in Asia to build relationships, align business strategies, improve communication and reduce development times.

2024

INTEGRATED REPORT