Orgill Inc. president and CEO Boyden Moore delivered a video message on Feb. 10 to kick off the company’s Spring Online Buying Event being held Feb. 8-19.
In his message, Moore provided updates on the business and addressed steps the company is taking to help drive customer success in 2021. Those initiatives include improving the supply chain and growing the company’s distribution network.
Moore also shared the four areas the company had focused on during the pandemic. These included staying safe, building capacity, embracing agility and strengthening relationships.
A Record Year
Moore shared that in 2020, Orgill saw a 21 percent increase in sales—with sales topping $3 billion for the first time in the company’s history.
He also says that Orgill is planning for its sales to grow by seven percent in 2021.
“We understand that those results are entirely built upon your success,” he told customers. “That’s why our mission statement to help our customers be successful is so important to us.”
Moore believes that many of Orgill’s customers picked up market share from the big boxes in 2020 that they will be able to keep going forward.
“Many of our customers had bigger increases in their business than we saw at the big boxes as more customers either rediscovered their local store, or in some cases, discovered it for the first time,” he says.
Improving the Supply Chain
Moore shared that in order to respond to supply chain challenges resulting from the pandemic and increased product demand, Orgill is working with vendors to return to its more than 96 percent customer order fulfillment rate.
“While we’re excited about these new opportunities and continued growth, we’ll stay true to our mission to help our customers be successful—for our current and primary customers—just like we did in 2020,” he says.
In addition to working with vendors on the fulfillment rate, Moore shared that Orgill has hired more than 1,000 new distribution center employees since June, and employees at the distribution centers have implemented second shifts and worked longer hours to meet higher demand.
Orgill has also accelerated the construction timeline of its new Rome, New York, distribution center by nearly a year, he says.
“After turning the first shovel of dirt in April, we completed the construction of the facility in November before snow began to fall,” Moore says. “We’ll begin receiving product in March and expect to begin shipping by midyear. Adding this 800,000-square-foot warehouse will greatly improve our entire distribution network and bring faster response and service to our customers in the Northeast.”
Moore also shared that Orgill is working to expand its distribution network in the West, with more details to come shortly.
Harnessing Technology to Support Growth
Moore says Orgill is implementing new inventory management software that will help improve the tools buyers use to anticipate demand.
“We’re working to ensure we have the capacity in place to support the potential of doubling our business in the next five years,” he says.
Moore touched on the work being done by Central Network Retail Group (CNRG) and the technology and tools that are being developed and delivered to customers through Tyndale Advisors and Orgill Retail Services, such as the BrandBase integrated marketing software, Orgill’s integrated e-commerce solution and FanBuilder loyalty program.
“While others in the industry may have similar retail platforms, ours is the only one focused on the mission to help our customers be successful,” Moore says.
Moore also says Orgill will continue to improve the user experience and tools available to customers during online buying events.
“When we are able to return to in-person dealer markets, we will incorporate these lessons and online tools into a hybrid event, so you can focus more on new product discovery, networking, retail services and programs and educational opportunities that are available at our shows,” he says.
In January, Orgill also launched its distance learning program, which saw more than 2,400 online seminar attendees.
Moore says Orgill will continue to develop these seminars online each month.
“These ideas are part of our work to clarify a new vision for technology at Orgill and the role that technology plays in our mission to help our customers be successful,” he says.
Under the leadership of Marc Hamer, Orgill’s new executive vice president and chief digital and information officer, Orgill has reorganized and added to its technology team companywide.
“It’s an exciting time in our industry, and it’s an exciting time at Orgill,” Moore says.
Looking to the Future of the Industry
Moore also addressed trends he believes will drive business for Orgill customers in 2021 and the future. In his presentation, he cited research from the North American Hardware and Paint Association, the Home Improvement Research Institute and Cleveland Research Company, among others.
He showed that in 2020, the home improvement industry was up by 13.2 percent, a trend that has continued into 2021. And he predicts that millennials and Generation Z will drive housing demand in 2021 and the future.
“In 2020, DIY customers led the increase in the industry, but we are expecting the pro business to outperform the [DIY] industry in 2021,” he says.
Orgill Inc., the world’s largest independent hardlines distributor, was founded in 1847 and is headquartered in Memphis, Tennessee. Orgill serves more than 11,000 retail stores throughout the U.S. and Canada, and in over 50 countries around the world.