Stationery and Office Supplies (SOS) is banking on its partnerships and the buildout of its e-commerce platform to fuel growth in the current financial year.

Last year the company entered into a strategic partnership with American office supply provider AIS Incorporation with the aim of satisfying large corporate contracts. By fulfilling “done-to-order” contracts, supplies from AIS will supplement SOS’s current inventory of office furniture.

“AIS gives us the opportunity to supply larger contracts as we seek to strengthen [our] hold on the local market by providing a wider range of office furniture. The partnership is critical to the company’s growth and keeping in line with the latest trends,” SOS Chairman Stephen Todd told the Jamaica Observer.

Given the nearshore presence of AIS, the partnership will result in quicker delivery of supplies when compared to supplies from China. In this regard, Todd noted that the shorter delivery period translates to quicker turnover and higher return on investments.

The chairman pointed out, too, that nearshoring has been part of its sourcing strategy to secure “cost-effective suppliers” and ensure SOS is able to meet demand and drive “positive growth” throughout 2022.

For financial year 2021, SOS recorded revenues growth of 16 per cent over the $972.3 million in 2020. The company’s to $1.1 billion in revenues last year was, however, just short of its 2019 performance.

At year end, the SEEK line contributed $48.2 million to the increase in revenues when compared with $38.3 million at December 31, 2020.

SOS has partnered with another supplier as it seeks to diversify its office furniture portfolio.

“At the end of the year, we also began to develop a new line of furniture to satisfy new customer segments. The initial research is extremely promising, and we are partnering with a new factory on production,” Todd wrote in the company’s annual report for 2021.

Notwithstanding rising cost of raw material and an approximately 400 per cent increase in shipping rates, the company has been able to maintain optimal levels of inventory through “strategic inventory management”. Moreover, Todd shared that the company has absorbed some cost increases while remaining competitively priced goods.

SOS registered a nine per cent increase in cost of sales for 2021, which jumped from $526.89 million the year before. At the same time, it increased its inventory by 27 per cent.

With operating expenses increasing slightly, SOS increased profitability by almost 200 per cent. Net profit jumped from $35.25 million in 2020 to $105.50 million at the year end.

“Later in the year, the gradual reopening of offices and schools had a positive impact on the business, and we had an outstanding fourth quarter where we posted a $13.3-m profit compared to a loss in the previous year. We expect this increase to continue throughout 2022 with the opening of schools, workplaces, and various sectors of the economy,” the chairman outlined in the annual report.

Todd revealed that plans are in place to enhance the company’s e-commerce platform.

To clarify, he told Business Observer that, “We are in the process of building out our website as well as the back end. This will enable customers to purchase straight from the website. We intend to have this up and running in the near future.”

When quizzed about partnering with e-commerce operators, he disclosed that the company is currently partnering with locally owned CoolMarket to distribute some of its products.

In terms of exports, the company is also exploring partnerships with additional suppliers across the Caribbean to expand its revenue stream.