Restoration Hardware 2014 Annual Report Download - page 11

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We have a limited number of long-term merchandise supply contracts but we believe that we generally have
strong relationships with our product vendors. Although we transact business primarily on an order by order
basis, we typically work with many of our vendors over extended periods of time, and many vendors are making
long-term capacity investments to serve our increasing demands. Over the last several years, we engaged in a
sourcing initiative to develop closer relationships with our vendors in order to achieve better efficiencies and
further improve our product development process. Through this process, we have eliminated the use of most third
party purchasing agents in favor of a model in which we directly manage our vendors. We have achieved
significant cost savings and other efficiencies from this initiative.
Distribution and Delivery
We manage the distribution and delivery of our products through 13 facilities, each of which serves all of
our sales channels:
• Our West Jefferson, Ohio facility is approximately 1,224,000 square feet. It serves as our distribution
center for all of our small parcel direct-to-customer orders and retail store replenishment. It is also the
site of one of our three customer service centers.
• Our North East, Maryland facility is approximately 1,195,000 square feet and is located near our
Baltimore facility. It serves as our primary furniture distribution center for the Eastern regions of the
United States and Canada.
• Our Mira Loma, California facility is approximately 886,000 square feet. It serves as a furniture
distribution center for the Western regions of the United States and Canada, as well as the furniture
home delivery hub for the greater Los Angeles metropolitan area.
• Our Grand Prairie, Texas facility is approximately 859,000 square feet. It supports our furniture
distribution for the Central and Southern regions within the United States and houses our newest
customer service center. This facility also serves as the furniture delivery hub for the greater Dallas
metropolitan area and central Texas region.
• Our Chino, California facility is approximately 636,000 square feet. It is a short-term facility to support
the Mira Loma, California furniture distribution center. We intend to exit this interim facility in August
2015.
• Our Baltimore, Maryland facility is approximately 508,000 square feet. It serves as a secondary
furniture distribution center for the Eastern regions of the United States and Canada, as well as a
furniture home delivery hub for the greater Baltimore and Washington, D.C. metropolitan areas.
• Our Tracy, California facility is approximately 284,000 square feet. It serves as the furniture home
delivery hub for the San Francisco Bay Area region and as a supplemental storage facility for our
furniture distribution network. This location also houses our largest customer service center.
• Our Dedham, Massachusetts facility is approximately 119,000 square feet. It serves as the furniture
delivery hub for the greater Boston metropolitan area.
• Our Avenel, New Jersey facility is approximately 114,000 square feet. It serves as the furniture
delivery hub for the greater New York/New Jersey metropolitan area.
• Our Atlanta, Georgia facility is approximately 101,000 square feet. It serves as the furniture delivery
hub for the greater Atlanta metropolitan area.
• Our Pompano Beach, Florida facility is approximately 101,000 square feet. It services as the furniture
delivery hub for the greater Miami metropolitan area and southern Florida region.
• Our Houston, Texas facility is approximately 71,000 square feet. It serves as the furniture delivery hub
for the greater Houston metropolitan area and eastern Texas region.
• Our Carmel, New York facility is approximately 40,000 square feet. It serves as the furniture delivery
hub for the greater New York metropolitan area and Connecticut.
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