Office Products News

Officeworks reworks supply chain to service online growth

Solar-powered robots join the in-house team.
 
With annual online sales now worth more than $1 billion, Officeworks has made a major change to its supply change strategy by owning and controlling a network of distribution centres across the country.
 
The retailer has changed direction from outsourcing supply chain capabilities to bringing it back in-house.
 
“When I joined we had a different strategy around our supply chain,” Officeworks managing director Sarah Hunter (pictuired) told The Australian, referring to the company’s previous outsourcing strategy.
 
Officeworks recently opened Australia’s first solar-powered robotic distribution centre in Derrimut, Victoria (see separate story).
 
Around 46 per cent of its business now comes via online, including click and collect so it needs to retain this growth at a cost-effective scale.
 
“We started in Victoria, and we have had approval to build, now board approval to invest, and we are building a new, similar distribution centre operation in Western Australia, Sarah Hunter, Officeworks managing director, said.
 
“Looking at our capital expenditure three, four, or five years ago it’s a material step up in our investment in our supply chain.
 
“Most importantly for us as a business is that every team member who worked at the old facility has been completely retrained,” she said. “We have 120 team members who are now fully trained in how to work in an automated state-of-the-art environment.”
 
 
Date Published: 
29 March 2022