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Manufacturing and sourcing

Steinhoff’s manufacturing and sourcing strategy remains focused on manufacturing and sourcing in low-cost markets. Our integrated sales model allows the group to supply various alliance partners at wholesale and retail level as well as leverage off its own retail operations.

Manufacturing

The manufacturing operations include integrated timber and raw material operations in southern Africa, and integrated furniture and household goods manufacturing operations in Europe and the Pacific Rim.

The manufacturing activities produce the following products which are ready for use either by consumers or within another manufacturing process:

  • bathroom furniture
  • beds
  • case goods
  • foam
  • leather
  • springs and components
  • textiles
  • timber and related products
  • upholstery

Steinhoff has the flexibility to utilise our own manufactured products or to source products from other sources. This provides us with the ability to better manage the price and quality of raw materials which are utilised in the production of goods sold. Management is committed to sourcing high-quality low-cost raw materials to ensure price competitive goods.

Sourcing

Steinhoff International Sourcing complements and supplements the group’s design and manufacturing capacity. It is a pure service provider that sources product from across the globe at competitive prices which provides us proximity to the market. As a service division of the group, Steinhoff International Sourcing creates a distinct competitive advantage by providing speed to market, and identifying, evaluating and managing external suppliers.

Sourcing activities are focused on sourcing household goods from Asia, particularly China, Thailand and Vietnam, and more recently out of Malaysia. This division retains a permanent employee base focused on quality service delivery to our global operations. The team of employees is structured around category management and product specialisation, and serves customers in the UK, continental Europe, Africa, Australia and New Zealand.

This division is also responsible for:

  • comprehensive material procurement
  • product and fabric development
  • technical assistance
  • coordination of sample approvals
  • assessment of lab tests
  • evaluation of raw material availability
  • undertaking quality assurance inspections at all vendor production sites
  • the supervision of logistics and shipping information

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