By George Anderson
In yet another turnaround plan announced by a retailer, OfficeMax has put forth a three-point plan the company says will make it more competitive and profitable in the future.
The three points are:
- Making improvement in the corporate infrastructure with key initiatives in supply chain and information technology;
- Improving operating performance in the company's retail and contract businesses; and,
- Delivering financial performance through a combination of cost-saving initiatives and the allocation of capital for growth.
Sam Duncan, chairman and CEO of OfficeMax, said the turnaround plan was a result of "a broad-based review of the entire OfficeMax organization, including our real estate portfolio and business segment performance through every department of the company."
The plan, he added, "will allow OfficeMax to attain stronger operating and financial performance, and ultimately, drive enhanced value for our shareholders."
The company is looking to combine its retail and contract business supply chain management. Through this initiative, the company expects it can improve SKU management and forecast accuracy. It also believes it will expedite replenishment and enhance supplier performance.
OfficeMax expects to achieve these supply chain actions through a number of major IT initiatives including: "consolidating two core data centers into one; investing in the eCommerce platform; launching a common platform for in-store kiosks and OfficeMax.com, the company's retail website; and integrating systems to utilize contract distribution centers to augment retail store replenishment. Underpinning these initiatives will be upgrades to the inventory management system that will enhance store-level and item-level forecasting and provide better reporting and visibility across the supply chain."
Moderator's Comment: Where do you see the office supplies business heading? What do you believe OfficeMax needs to do to turn its business around? - George Anderson - Moderator