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Supply Chain Update
September 24, 2021
Compared to last week, this week’s overall service level decreased 0.6 percentage points as four merchandise categories trended down and three increased or were unchanged. Total inventory is ahead of 2020 by 53%. Of our 23 selling departments, 18 show month-to-date sales increases through Sept. 22. Business remains strong as Kitchen & Bath, Heating & Cooling, Exclusively Orgill, Agriculture, Electrical, Housewares, Fasteners, and Building Materials are all up double digits. Sales are down most notably in Plumbing, Paint, and Builders’ Hardware.
Supply Chain Update
September 17, 2021
Compared to last week, this week’s overall service level increased by 1.9 percentage points and every merchandise category increased. Total inventory is ahead of 2020 by 53%. Of our 23 selling departments, 18 show month-to-date sales increases through Sept.15. Business remains strong as Kitchen & Bath, Heating & Cooling, Exclusively Orgill, Agriculture, Electrical, Housewares, Fasteners, and Building Materials are all up double digits. Sales are down most notably in Plumbing, Paint, and Builders’ Hardware.
Supply Chain Update
September 10, 2021
Compared to last week, this week’s overall service level increased by 0.5 percentage points as all but two of the merchandise categories increased. Total inventory is ahead of 2020 by 50%. Of our 23 selling departments, 16 show month-to-date sales increases through Sept. 8. Business remains strong in Kitchen & Bath, Heating & Cooling, Exclusively Orgill, and Agriculture. Sales are down most notably in Plumbing, Paint, and Builders Hardware.
Supply Chain Update
September 3, 2021
Compared to last week, this week’s overall service level increased by 1.10 percentage points as all but two of the merchandise categories increased. Total inventory is ahead of 2020 by 48.1%. Of our 23 selling departments, 21 showed month-to-date sales increases through August. Our top departments as compared to 2020 were: Kitchen and Bath, Heating and Cooling, Locks, Fasteners, and Automotive.
Supply Chain Update
August 20, 2021
Against last week, this week’s overall service level dropped .03 percentage points with four of the seven merchandise categories losing ground.
Receiving continues in support of the Fall Online Buying Event, which began Aug. 16. Our DCs’ on-hand inventory is up more than 47% over last year, putting us in a much better position to ship promotional items ordered during the event!
Supply Chain Update
August 13, 2021
This week’s seen a rise in overall service level thanks to improved availability of plumbing and electrical items, which were short in supply for several months. A COVID-19 outbreak at the port of Ningbo, China, is negatively impacting the movement of about 20% of containers. Service level on Exclusively Orgill products should improve significantly in the next few weeks following a surge of containers arriving at the Memphis intermodal port. They are being expedited to the Sikeston DC for redistribution to the seven other DCs.
Supply Chain Update
August 6, 2021
July sales are flat against 2020. Increased sales in Kitchen & Bath, Electrical, Automotive, Hand Tools and Fasteners departments were offset by decreased sales in WWS Seasonal, Paint, Heating & Cooling and Outdoor Living departments.
Supply Chain Update
July 30, 2021
This week’s grand opening celebration of our newest distribution center in Rome, NY, brought together local dealers, Orgill sales reps and suppliers. It was good to see so many people in person for the first time in many, many months! It reminds us of how special and how dependent we all are on one another as we chase success, face incredible challenges and strengthen relationships on all sides.
Supply Chain Update
July 23, 2021
We are hearing of production shutdowns in Vietnam due to Covid outbreaks. Recent outbreaks in China and Malaysia are causing production and shipping disruptions in Southeast Asia and will impact all products originating in that region. Overall, Orgill sales remain ahead of the pace set in 2020 for July. Goods needed to support dry and hot conditions regionally lead the way.
Supply Chain Update
July 16, 2021
This weekly update provides transparency to situations adversely affecting customers. Contributing factors to supply disruption remain the same. When it comes to vendors’ fill rates, little change has been seen in the past six months. We continue to report that recovery is slow and will likely remain so for quite some time. While I can report that we had some improvement to fill rates this week, those changes have been very small. As predicted.
Supply Chain Update
July 9, 2021
We ended June with a positive increase in sales overall, with only three departments down: Paint, Builders’ Hardware and Retail Services. Our Paint business was off as a result of supply chain shortages and falling consumer demand in the wake of last year’s spike. Our Heating and Cooling department fared best in June thanks to very hot weather (especially in the Pacific Northwest) that created extremely brisk air conditioning and fan sales.
Supply Chain Update
July 2, 2021
This week saw continued improvements in the Petrochemical recovery, increased disruption in overseas shipping, and additional pricing volatility. Two of our categories saw improved or flat line service level, while 5 were down versus the prior week. Overall service level held flat. Sales continued to beat last year's results.
Supply Chain Update
June 25, 2021
Supply-chain disruption continues to stem from three root causes: Raw materials, transportation and labor.
- Competition on the global stage for raw materials: Virtually every major raw material source has been impacted. Resins, paper, semiconductors, steel, copper and aluminum are low in supply and pricing is going up as a result.
- Transportation: Equipment and driver shortages, equipment placement, port congestion, and worker shortages are plaguing the entire logistics chain. We are facing significantly higher lead times and much higher freight costs as demand outpaces supply.
- Labor shortages and Covid impact: This is becoming less of an issue but localized outbreaks, such as the one in China’s port of Yantian, may cause additional delays.
Supply Chain Update
June 18, 2021
Supply-chain challenges stem from three root causes: Raw materials, transportation and labor.
- Competition on the global stage for raw materials: Virtually every major raw material source has been impacted. Resins, paper, semiconductors, steel, copper and aluminum are low in supply and pricing is going up as a result.
- Transportation: Equipment and driver shortages, equipment placement, port congestion, and worker shortages are plaguing the entire logistics chain. We are facing significantly higher lead times and much higher freight costs as demand outpaces supply.
- Labor shortages and Covid impact: This is becoming less of an issue but localized outbreaks, such as the one in China’s port of Yantian, may cause additional delays.
Supply Chain Update
June 11, 2021
Though we’re only 10 days into June, sales are strong versus 2020. Momentum is greatest in mostly non-seasonal departments: Hand Tools, Power Tools, Plumbing, Electrical, Paint Sundries, Consumables, Automotive, and Building Materials, and Cleaning Supplies. That does not mean our seasonal businesses are down. In fact, Agriculture, Farm and Pet, Outdoor Living, and WWS seasonal are all running increases. Paint sales are down slightly.
Supply Chain Update
June 4, 2021
May sales finished up in all departments combined. Good gains were made in core departments like Tools, Electrical, Kitchen & Bath, Automotive, and Fasteners. However, demand for Paint and Lawn & Garden seasonal products is lower against 2020.
Supply Chain Update
May 28, 2021
May is proving to be a tough month to comp when compared to the January-through-April timeframe, but sales are ahead of a year ago. While Paint and our L&G departments have softer sales, other categories have picked up the pace including Power Tools, Hand Tools, Electrical, Patio, Heating/Cooling, and Automotive.
Supply Chain Update
May 21, 2021
When reviewing dealers’ orders, we’re seeing that line counts are up this month versus a year ago. This demonstrates that demand for merchandise is stronger this year. However, supply-chain shortages are forcing us to cut many of those lines. May is proving to be a tough month to comp, but sales are ahead of a year ago. While Paint and our L&G departments have softer sales, other categories have picked up the pace including Power Tools, Hand Tools, Electrical, Patio, Heating/Cooling, and Automotive.
Supply Chain Update
May 14, 2021
Versus 2020 sales, we see continued softening in Paint, Agriculture, Lawn and Garden, Outdoor Living, and Farm and Pet. However, that offset by sales increases in Patio Furniture, Electrical, Hand Tools, Consumables, Kitchen and Bath, and Power Tools. That will most likely continue through the month.Meanwhile, inventory on hand continues to climb on higher inbound receipts versus a year ago.
Supply Chain Update
May 7, 2021
May 2021 is seeing softer sales on the heels of an all-time-high May in 2020. Departments that saw the biggest gains a year ago like Paint, Agriculture, and Lawn and Garden are flat while departments like Electrical, Hand Tools, Power Tools, and Kitchen & Bath are seeing nice increases. That will most likely continue throughout May. Meanwhile, inventory on hand versus a year ago continued to climb on higher inbound receipts.
Pricing Update: Valspar Changes
May 4, 2021
On Monday May 3, costs and retails changed on Valspar and Cabot stains in the US. As part of these changes, some of the Valspar brands' retail prices (retails) are being repositioned relative to each other. In addition to the brand repositioning, the number of SKUs with EDLP Retails are being increased. The spread between the EDLP Retails and the Suggested Retails is also increasing on the SKUs that need it. All of this is being done to create a market-driven pricing strategy that aligns more closely with the Orgill retail pricing philosophy.
Supply Chain Update
April 30, 2021
We'll close out another record setting month of sales this week! This is on top of what was pretty strong growth a year ago! We are seeing sales growth north of 36%. Of our 23 departments, 20 are up 20% or better. Nine departments are up over 40%:
Supply Chain Update
April 23, 2021
April’s sales momentum continues across all Orgill DCs. This is on top of what was pretty strong growth a year ago! So far this month, our overall business is up more than 40% with 10 departments at or exceeding 40%. Of our 23 departments, 20 are up 20% or better. The only department showing a decrease this month is our Cleaning department (down 4.5%), which is up against last year’s panic buying.
Supply Chain Update
April 16, 2021
Big sales momentum in April. We're beginning to comp against last spring's demand surge and are seeing impressive growth on top of what was impressive growth a year ago. So far this month, our overall business is up more than 40% with 11 of our departments up equal or better than that. Of our 23 departments, 20 are up 20% or better. The only department showing a decrease this month is our Cleaning department, which is up against last year's panic buying.
Supply Chain Update
April 9, 2021
The sales momentum we saw in March continues into April. We’re beginning to comp against spring 2020’s demand surge and are seeing impressive growth on top of what was impressive growth a year ago. So far this month, our overall business is up more than 39% with 11 of our departments up 40% or better.
Supply Chain Update
April 2, 2021
Another exceptional selling month is in the books with stock sales up over 36% in March and over 33% for the first quarter! Of our 23 departments, 21 ended March up 20% or better with 10 of those up over 40%:
Supply Chain Update
March 26, 2021
Traditional spring category sales are heating up as we are into our spring selling season in most areas of the country. Farm & Pet, Lawn & Garden, Agriculture, Outdoor Living, and our Exclusively Orgill Seasonal products lead the way, but sales in our Kilgore DC are still led by categories needed for recovery from the storm in February.
Supply Chain Update
March 19, 2021
Traditional spring sales are on a record pace for the first quarter of 2021. Farm & Pet, Lawn & Garden, Agriculture, Outdoor Living, and our Exclusively Orgill Seasonal products lead the way.Products needed as a result of the recovery in areas hit by the ice/snow/cold in February dominate shipments from our Kilgore, TX distribution center.
Maintaining Profitability & Competitiveness in a Volatile Pricing Environment
March 18, 2021
In the wake of 2020, changing product demand and customer buying patterns has created an environment for volatile pricing within the international and domestic supply chain. Despite this volatility, Orgill remains committed to Help our Dealers be Successful by ensuring our overall pricing to customers remains as stable as possible. Here's a look at some of the issues we're facing and what we're doing to overcome them.
Supply Chain Update
March 12, 2021
Industry experts seem to agree: The supply-chain race to recovery is going to be a marathon and not a sprint. The most recent Covid stimulus package will inject cash into consumer’s hands that should keep demand high. Orgill’s on-order reflects that, and all efforts are being made to ensure you have access to the products you need to meet that demand.
Supply Chain Update
February 26, 2021
A mix of strong sales volume and high demand for weather-related recovery in Texas dominates the news this week. Orgill sales are up over 40%. The top eight departments are:
Supply Chain Update
March 5, 2021
Demand continues to be strong and sales at Orgill were up over 44% for February. Our top 10 departments in order of sales increase were:
Supply Chain Update
February 26, 2021
A mix of strong sales volume and high demand for weather-related recovery in Texas dominates the news this week. Orgill sales are up over 40%. The top eight departments are:
Supply Chain Update
February 19, 2021
Severe weather this week across much of the US has created additional logistical challenges with manufacturing and our own operations. While much of this is expected to be short lived, there will be delays in receipts as a result. Sales on spring-season and weather-related merchandise are up significantly across the board. Inventory continues to build on spring seasonal related lines and we are shipping merchandise that was booked last fall.
Supply Chain Update
February 12, 2021
We are seeing very high demand around the Orgill Spring Buying Event and our on-order quantities reflect that! Service Level has remained stable over the last few weeks.
Supply Chain Update
February 5, 2021
Sales finished strong in January. While our sales performance is good, service level recovery remains painfully slow. Improving service level is key to continuing success. This begins with our supply-chain vendors and ends with execution on our end.
Supply Chain Update
January 29, 2021
Sales continue to be strong with stock sales up 37% month-to-date. Of our 23 departments, 19 departments are up 20% or more. And 11 of those are seeing increases of 40% or greater. Dealers are in full gear preparing for the spring selling season. We’ve also seen a surge in activity surrounding our Electrical products, and all tool categories are very active.
Number of Cost Changes and Volatility In 2021
January 28, 2021
For Orgill and our customers, 2021 has started with a large number of cost changes and a high degree of price volatility. We recognize the strain that large numbers of cost changes place on our customers so I want to share with you why this is happening and what Orgill does when cost increases are proposed by a supplier.
Supply Chain Update
January 22, 2021
Sales remain very strong with stock sales up 36% month-to-date. Of our 23 departments, 21 departments are up 20% or more. And half of those - that’s 10 departments - are seeing increases of 40% or greater. Winter weather has helped drive our Heating lines but dealers are obviously in full gear preparing for the Spring selling season. We’ve seen a surge in activity surrounding our Electrical products, and all tool categories are very active.
Supply Chain Update
January 15, 2021
Sales are off to a great start in 2021 with stock sales up 36% month-to-date. Of our 23 departments, 20 departments are up 20% or more. And half of those - that’s 10 departments - are seeing increases of 40% or greater.
Supply Chain Update
January 8, 2021
What a year - it was 2020 came in like a lamb and went out like a lion! Despite challenges with the supply chain, December ended up nearly 40% in stock sales. That momentum has carried right into January with sales up 45% in the first few days.
Supply Chain Update
December 31, 2020
Happy New Year! On behalf of everyone at Orgill, we hope 2021 brings prosperity and more certain times to all. We’re wrapping up the most challenging year any of us at Orgill can recall. Though we faced many challenges, we also created record sales, reinvented ourselves and discovered that across-the-board improvements will help our continued growth
Supply Chain Update
December 18, 2020
On behalf of everyone at Orgill we want to wish all of you a very happy holiday season. Merry Christmas!
Supply Chain Update
December 11, 2020
Recovery on supply chain service level is continuing to show improvement in December. The top 30 vendors ranked by line cuts, account for half of all total line cuts. And of those 30 vendors, 25 showed week-over-week improvement. In fact, our service level on those 30 vendors has improved by more than10% in the past 30 days. This has driven our overall service level in an upward direction and we expect continued improvement as we charge toward full recovery.
Supply Chain Update
December 4, 2020
We hope you had a happy Thanksgiving. Stock sales remained strong throughout November and closed up 24%! Sixteen of our 23 departments finished the month at +20% or greater. Leading the way:
Supply Chain Update
November 20, 2020
Sales remain at a brisk pace as we approach the Thanksgiving holiday in the US. Demand for seasonal products continues beyond traditional selling periods and has continued to tax the vendor community. As a result, service-level cuts outweigh the positive gains in other categories. While our service level is not up to our standards, we are receiving a significant amount of inventory to fuel tremendous growth. Our inventory continues to climb and, while not nearly back to "normal," levels it is helping to provide goods needed for the balance of the fourth quarter and the all-important gift giving season. We are beginning to see trends on service level moving upwards as recovery, albeit slow, is real.
Orgill Distribution Center Update
November 16, 2020
COVID-19 cases are increasing and it remains a major concern in our Distribution Centers. The safety of our employees is the top priority and we continue our focus on prevention in our facilities while taking care of our customers. In states where it is called for we are requiring the use of masks in our facilities; currently West Virginia and Texas.
Supply Chain Update
November 13, 2020
Demand for seasonal products far beyond traditional selling periods has taxed the vendors and, as a result, service-level cuts outweigh the positive gains in other categories. While our service level is not up to our standards, we are receiving enough inventory to fuel tremendous growth. One positive sign is our inventory has risen over the past six weeks and, while not nearly back to "normal," it is helping to provide goods needed for the balance of the fourth quarter and the all-important gift giving season.
Supply Chain Update
November 6, 2020
Inventory continues to build in all distribution centers ahead of what is expected to be a fantastic fourth quarter! Late season demand for what are traditionally spring and summer goods has driven service-level cuts up more than the positive gains on other categories. October has seen huge growth in our seasonal lawn and garden categories: Agriculture +76.9%; Outdoor Living +50.5%; Farm & Pet +46.8%; Lawn & Garden +41.3%. Our Housewares category is seeing tremendous growth as well at +46.2%. So while our service level is not up to our standards, we are receiving inventory that is fueling this growth.
Orgill Distribution Center Update
November 2, 2020
COVID-19 remains a concern and the safety of our employees is a top priority; as such we continue our focus on prevention in our facilities. Our teams continue to be focused on staying safe and taking care of our customers. We have seen a slight uptick in possible cases at the DCs, so remain vigilant in regards to our safety precautions.
Supply Chain Update
October 30, 2020
Inventory continues to build in all distribution centers ahead of what is expected to be a fantastic fourth quarter! Late season demand for what are traditionally spring and summer goods has driven service-level cuts up more than the positive gains on other categories. October has seen huge growth in our seasonal lawn and garden categories: Agriculture +76.9%; Outdoor Living +50.5%; Farm & Pet +46.8%; Lawn & Garden +41.3%. Our Housewares category is seeing tremendous growth as well at +46.2%. So while our service level is not up to our standards, we are receiving inventory that is fueling this growth.
Supply Chain Update
October 23, 2020
Inventory is building for the coming Holiday Season in categories like tools, heating, and our Exclusively Orgill brands. Continued demand for what are traditionally spring and summer goods on an already exhausted supply chain has driven service-level cuts up more than the positive gains on other categories. Our investments in people and other resources at our DCs are adding to our ability to receive more goods, faster than ever. Our biggest issues still fall on our vendors with late inbound purchase orders and vendor backorders. This is related to the challenges vendors have on capacity, personnel issues, raw materials, and packaging. We are still experiencing about two-thirds of our line cuts as a result of late-arriving vendor purchase orders, with 44% of our lines cut by way of vendor backorders.
Supply Chain Update
October 16, 2020
While we have seen some small improvements with some vendors on fill-rate recovery, our overall fill rates have not rebounded in a positive way. Continued demand for what are traditionally spring and summer goods on an already exhausted supply chain has driven service-level cuts up more than the positive gains on other categories. We continue to invest in people and other resources at our DCs to ensure added ability to receive more goods, faster than ever. Our biggest issues still fall on our vendors with late inbound purchase orders and vendor backorders. This is related to the challenges vendors have on capacity, personnel issues, raw materials, and packaging. We are still experiencing about two-thirds of our line cuts as a result of late-arriving vendor purchase orders, with 44% of our lines cut by way of vendor backorders.
Orgill Distribution Center Update
October 12, 2020
Most of our DCs are now returning to normal operation. Covid is still a concern and the safety of our employees is a top priority; as such we continue our focus on prevention in our facilities. Our teams continue to be focused on staying safe and taking care of our customers. We have seen a slight uptick in possible cases at the DCs, so remain vigilant in regards to our safety precautions.
Supply Chain Update
October 9, 2020
As we roll into October we are still seeing substantial growth in all categories. Vendors are saying that improvements in the supply chain should assist with improved fill rates as we navigate the rest of the month. Our investments in people and other resources is paying dividends as we are setting records for in-bound freight. That said, our overall service level continues to fall short of our high standards as we continue to fight our way through a variety of challenges. Our biggest issues still lay with late inbound purchase orders and vendor backorders, but we are seeing some of this merchandise begin to arrive in our DCs. We are still experiencing about two-thirds of our line cuts as a result of late-arriving vendor purchase orders, with 44% of our lines cut by way of vendor backorders.
Supply Chain Update
October 2, 2020
Stock sales in September ended with overall sales growth up 30% over last year. Sales demand has continued to outpace available supply. We continue to invest heavily in people and other resources to assist in receiving more inventory in our DCs on a daily basis. However, with the sales increases we are still experiencing, it has been difficult to gain much ground. Our overall service level continues to fall short well beyond our standards as we continue to fight our way through the challenges. Our seasonal category businesses continue to deliver increases, with Agriculture and Outdoor Living up 75% and 62%, respectively. Many of the seasonal vendors have thrown in the towel for 2020, so recovery in these categories may not happen this year. Our biggest issues still lay with late inbound purchase orders and vendor backorders, but we are seeing some of this merchandise begin to arrive in our DCs. We are still experiencing about two-thirds of our line cuts as a result of late-arriving vendor purchase orders, with 44% of our lines cut by way of vendor backorders.
Orgill Distribution Center Update
September 28, 2020
The DCs continue to improve, with most being close to normal service. Sikeston is still being metered but has not had to make line cuts in several weeks. The maximum lines are being raised where possible in the effort to hit comfortable daily line counts before we remove the maximums.
Supply Chain Update
September 25, 2020
September remains on a roll with overall stock-sales growth exceeding last year’s business by 26%. Unfortunately, sales demand is still exceeding available supply. Our inbound receiving has ramped up significantly. However, with exceptionally high amounts of vendor backorders, we are still falling short of significant service-level improvements. Amazingly, seasonal categories continue to show incredible increases with Agriculture and Outdoor Living up 76% and 51%, respectively. Late inbound purchase orders continue to be a problem but we are beginning to receive small amounts of past-due, previously backordered merchandise that should soon provide relief. We are still experiencing about two-thirds of our line cuts as a result of late-arriving vendor purchase orders, with 44% of our lines cut by way of vendor backorders.
Supply Chain Update
September 18, 2020
September has continued with overall stock sales growth exceeding last year’s business by around 25%. We have ramped up receiving significantly but sales demand is still exceeding supply. Seasonal categories where business falls off at this point in time have not let up, with Agriculture and Outdoor Living up 74% and 52% respectively. Many vendors have stopped producing 2020 merchandise and have begun retooling for 2021. The good news, although we still have thousands of open late vendor POs, is that we are seeing a few signs that the vendor community is beginning to recover to a point of normalcy. With that said we are still seeing about two-thirds of our line cuts being a result of late arriving vendor purchase orders. Vendor backorders dropped slightly week over week and represents 44% of our line cuts. That is down from a high point of 50% from a few weeks ago, but we aren't quite ready to call this a trend.
Orgill Distribution Center Update
September 14, 2020
The DCs continue to show improvement and the past holiday week was another good week with a number of OBE lines beginning to ship. We did not have to make any cuts in Sikeston, but Post Falls had to cut some departments to lower the line count this week.The other DCs managed the workload well.
Supply Chain Update
September 11, 2020
I am disappointed to report that so far, in September, we see no signs of a letup and few signs that the vendor community is beginning to recover to a point of normalcy. We are still seeing about two-thirds of our line cuts being a result of late arriving vendor purchase orders. Vendor backorders account for 45% of our line cuts. That is down from 50% a few weeks ago, but it’s too early to tell if that is, in fact, an emerging trend.
Supply Chain Update
September 04, 2020
Our crazy and amazing 2020 continued in August as soaring sales and unprecedented demand added more pressure to an already-taxed supply chain. Our seasonal category businesses remained very strong, despite what is traditionally a time of declining sales. As we enter September, we see no signs of a letup and few signs that the vendor community is beginning to recover to a point of normalcy. As I write this, we are still seeing two-thirds of our line cuts as a result of late arriving vendor purchase orders. Vendor back orders account for 45% of our line cuts. That is down from 50% a few weeks ago, but it’s too early to tell if that is, in fact, an emerging trend.
Orgill Distribution Center Update
August 31, 2020
Our DCs are improving as line counts stabilize. Sikeston had one day cut while Inwood had no cuts. The other DCs managed the workload well with the exception of Post Falls. Due to heavy lines last Friday, we lost several employees to exhaustion. We shifted some routes to later days in the week. The accounts affected were notified and we appreciate their acceptance of the changes. Shifted routes will likely remain through this week as well.
Supply Chain Update
August 28, 2020
As I began writing this week's update, I came to the quick realization that nothing significant has really changed from last week's commentary. We are still experiencing unprecedented demand across all categories, with many exceeding 40% growth over last year. Our seasonal category business remains very strong. This time of year we would typically see seasonal sales slowing as we approach fall. However, as we end the month, there has been very little indication or signs of business softening. That is certainly taking its continued toll on service level, especially with seasonal vendors. Vendors are scrambling even more and most have not returned to any state of what we used to consider normal.
Supply Chain Update
August 21, 2020
Nothing has changed with regard to unprecedented demand in the month of August. Our seasonal categories remain very strong where they would typically be falling off as we approach fall. There have been no signs of significant slowing, which has seasonal vendors scrambling even more.
Orgill Distribution Center Update
August 17, 2020
Last week was a good week, a little lower line counts but stable sales. This week we expect to be the same. We are still working more hours than we like but very manageable at the DCs. Neither Sikeston nor Inwood had to have lines cut last week to meet the max lines they could handle. All other DCs were able to manage the business as it came in, most could have handled more.
Supply Chain Update
August 14, 2020
August demand continues to be very strong. All categories have been strong out of the gate, and there has been little-to-no slowdown in the consumer’s appetite for summer seasonal lines. Agriculture, Lawn & Garden, Outdoor Living, and Farm & Pet still lead all departments in growth so far. Our Paint department saw a slight slowdown in the final week of July but has regained strength this week.
Supply Chain Update
August 7, 2020
As we say goodbye to July and move into August, we are still experiencing record demand. All categories are very strong right out of the gate, and there has been little-to-no slowdown in the consumer’s appetite for summer seasonal lines. Agriculture, Lawn & Garden, Outdoor Living, and Farm & Pet still lead all departments in growth so far. Our Paint department saw a slight slowdown in the final week of July but has regained strength this week.
Orgill Distribution Center Update
August 3, 2020
Line counts have begun to stabilize slightly lower than the peaks we were seeing earlier in the summer; this has allowed the DCs to work more consistent hours. Still long hours but much more manageable.
Supply Chain Update
July 31, 2020
Line counts have begun to stabilize slightly lower than the peaks we were seeing earlier in the summer; this has allowed the DCs to work more consistent hours. Still long hours but much more manageable.
Supply Chain Update
July 24, 2020
Another week with exceptionally strong sales across all categories with Outdoor Living, Housewares, and Worldwide Sourcing products leading the way. Paint, Power Tools, Fasteners, and Builders Hardware are also showing exceptional sales. There has been little to no change to the strain on vendors to keep up with this incredible sales demand. Last week, we mentioned lead times into our DCs were extending. Two-thirds of line cuts are related to late vendor orders, and nearly half of line cuts are products backordered from vendors. While we can't do much to control what a vendor does or doesn't do, we are investing a great deal of time pushing vendors to ship merchandise to overcome service issues.
Orgill Distribution Center Update
July 20, 2020
Demand remained consistent with the previous couple weeks and line counts remained stable.
All DC’s were able to manage the business as it came in last week including Inwood and Sikeston, which are still being throttled back. We will be watching the daily volume closely to see when we can further ramp up the line counts at these two DC’s.
Supply Chain Update
July 17, 2020
July continues with exceptionally strong sales across all categories with Outdoor Living and Worldwide Sourcing products leading the way. Power Tools, Fasteners, and Builders Hardware are also showing exceptional sales. There has been little change to the strain on vendors to keep up with this incredible sales demand. Last week, we mentioned lead times into our DCs were extending. Currently, 66% of line cuts are related to late vendor orders. 50% of which are products backordered from the vendor.
Orgill Distribution Center Update
July 13, 2020
Last week’s demand at all DCs was strong, despite lower line counts.
Inwood and Sikeston DCs: Inwood was able to handle the workload with no adjustments, so we started ramping up Inwood’s daily lines. Sikeston is still on the borderline for line count and required two days of adjustments, although to a lesser extent than the week before. Multiple shift operations at Inwood and Sikeston are helping.
Supply Chain Update
July 10, 2020
With June behind us, July continues experiencing incredible sales volume. Fifteen of our 23 departments have increases of 40% or greater with the smallest department increase at 14%. Our L&G and Outdoor Living departments are up between 48% to 86%. Paint remains very strong, up 39%. The struggles of keeping up with demand within the vendor community remain as competition for raw materials and packaging contribute to delays. Lead times are extending further and we saw almost 50% of the lines cuts to you by way of vendor backorders. Lead times on drop ship orders are increasing as well.
Orgill Distribution Center Update
July 6, 2020
Last week was a very solid week at the DCs. Demand for products continued to remain strong in all regions and the line count management in Sikeston and Inwood continued to protect the productivity and staff at those two DCs. We appreciate those dealers adhering to the max quantities and as staffing and second shifts ramp up, we are getting closer to increasing those line limits. It’s been a great team effort.
Supply Chain Update
July 3, 2020
Business remains very strong as we approach the Fourth of July. With June behind us, we are still experiencing incredible sales volume. Our Agriculture department alone was up over 100% last month with the smallest department increase being up 16%. The struggle of keeping up with demand within the vendor community appears to be getting more difficult. Lead times are extending further and we saw almost 45% of the lines cuts to you by way of vendor backorders. Lead times on drop ship orders are increasing as well.
Orgill Distribution Center Update
June 29, 2020
This past week we saw a slight decline in demand, but it was still very high. With the help of our customers and customer service teams, our plan to restrict customer line line counts out of Sikeston and Inwood was successful. We were able to lower the workload there in our most stressed DCs. This week we plan to continue providing a consistent workflow into Sikeston and Inwood, allowing them the bandwidth they need to bring the new hires up to speed, and in the coming weeks, increase overall capacity. The other five DCs are doing great, still handling the increased workload without item restrictions.
Supply Chain Update
June 26, 2020
The surge in business continues through June. Incoming volume has not lessened in any DCs. We have several departments that are up over 50% in business. Our vendors continue to struggle to keep up with this increased volume and we are seeing longer lead times into our facilities and an increased number of vendor backorders. Despite these headwinds, our service level has remained relatively stable over the last few weeks.
From the Desk of Boyden Moore, President & CEO
June 24, 2020
I want to first thank you for your partnership and support as we continue to work through this health and economic crisis together. In addition to our weekly supply chain updates and distribution center updates, I wanted to provide you a more general update.
Orgill Distribution Center Update
June 22, 2020
We continue to see record volume which, despite our efforts to ramp up staff and capacity, has continued to create challenges across our distribution network.
Supply Chain Update
June 19, 2020
There hasn't been much in the way of positive change to report since last week's report. Incoming volume has not lessened in any of our DCs and we continue to see a continued impact on service level across all categories. As previously stated, this increased demand has made it difficult to get ahead and manage business in any predictable way. Find DC-specific information in the Orgill Distribution Center Update, which is updated every Monday.
Orgill Distribution Center Update
June 15, 2020
Last week we made significant progress in the Distribution Centers. Because of the extra day we’ve added for planning, we were able to remove all item restrictions (cuts) from all DCs and were able to flex within our DC array and more effectively distribute the workload. Sikeston and Inwood are getting the most attention because of the high volume from the regions they serve, and they are also being hit the hardest with attendance issues.
Supply Chain Update
June 12, 2020
We are still seeing a momentous amount of demand over the last few months and that demand continues to impact almost all of our categories. This increased demand from our customers has made it difficult to get ahead and manage business in our normal predictable ways.
Orgill Distribution Center Update
June 8, 2020
Last week the Distribution Centers recovered from the holiday week schedule (the previous week) and were loaded up with higher orders in general. All DCs remain operational. Sikeston and Inwood have been struggling with the volume increase and are also being hit the hardest with attendance issues. Long hours are the result and overtime is happening at all DCs. A limited second shift in order filling has started in Inwood last week and will be ramping up. Likewise Sikeston is in the process of setting up a second shift as well.
Supply Chain Update
June 5, 2020
The extraordinary demand we have experienced, beginning in April, accelerating through May, and continuing in the early days of June, has impacted virtually all of our categories. The uncertainty and unpredictability of the increased demand from our customers has complicated our ability to manage through it smoothly. We currently don't see any signs of business slowing and are doing all we can to remove each obstacle we encounter to manage to this new level of demand.
Temporary Order Deadline Change
June 3, 2020
The sales growth we have all been experiencing over the past two months within our industry is unprecedented. The ever-growing demand during the covid-19 pandemic has certainly kept our customers, distribution centers and truck drivers extremely busy. We are now entering into the summer selling season and we have no reason to believe the demand for products will decrease. With this in mind, our DC management teams are actively adding additional staff to handle this demand.
Supply Chain Update
May 29, 2020
Despite the strain on the entire supply chain, our sales growth continues to be unprecedented! Throughout May, all departments have been experiencing double-digit increases, especially in Seasonal, Paint, and Housewares categories.
Supply Chain Update
May 22, 2020
Sales growth this month has been unprecedented! All departments are experiencing double-digit increases, with especially strong growth in Seasonal, Paint, and Housewares categories.
Supply Chain Update
May 15, 2020
We continue to see sales surge. All departments are experiencing increases, with especially strong growth in Seasonal, Paint, and Housewares categories. At the same time, we're experiencing supply issues resulting from decreasing product availability and increasing lead times from our vendors. Our Senior Category Managers' category reports provide further information as well as product alternatives.
From the Desk of Boyden Moore, President & CEO
May 11, 2020
After careful consideration, we have made the decision to cancel our fall dealer market that was scheduled to be held August 27-29 in Las Vegas. There were a number of factors that led to this decision including an abundance of caution as it relates to the safety of our employees, customers, and vendors as well as consideration for how a market would function in an atmosphere where strict social distancing would still be required. While we hope conditions improve between now and August, we believe that refocusing our efforts with our vendors now to an online buying event for all of our customers is a better way for us to deliver on our mission "to help our customers be successful".
Supply Chain Update
May 8, 2020
As the environment shifts within our industry, we continue to see sales surge within Seasonal, Paint, and Housewares categories. As those demands increase, we're also experiencing supply issues resulting from decreasing product availability and increasing lead times from our vendors. Our Senior Category Managers have provided specifics and some alternatives to unavailable products in their category reports.
CARES Act Update
May 5, 2020
The following is an important change to the CARES Act and Paycheck Protection Program (PPP) loan distribution. This update affects businesses that have received PPP funds or are in the process of applying for PPP funds.
Supply Chain Update
May 1, 2020
We continue tackling unexpected challenges within our industry. These extraordinary times are resulting in a sales surge within Seasonal, Paint, and Houseware categories. As a result, we are experiencing supply issues stemming from overall product availability and longer lead times. Our Senior Category Managers have provided specifics and some alternatives to unavailable products in the category commentary.
Supply Chain Update
May 1, 2020
We continue tackling unexpected challenges within our industry. These extraordinary times are resulting in a sales surge within Seasonal, Paint, and Houseware categories. As a result, we are experiencing supply issues stemming from overall product availability and longer lead times. Our Senior Category Managers have provided specifics and some alternatives to unavailable products in the category commentary.
Supply Chain Update
April 24, 2020
The Orgill purchasing team continues to muscle through these challenging times. While sales are generally up across the country, it's a different category mix of items than we typically source and sell at this time of year. Because of this, our team is working exceptionally hard to keep our service levels up to where you need it to be.
CARES Act - Round 2
April 23, 2020
A second round of federal funding will soon be made available to small businesses like yours. If you applied and didn't receive funding, or haven't yet applied, this is another chance.
Supply Chain Update
April 17, 2020
It feels like an overused phrase now, but it does appear that we're settling into a new normal. Let's hope it's only normal for a short while. But if you've been studying our reports for the past few weeks, you'll start to see a pattern that is still holding:
Video: Marketing During A Pandemic: Guidelines for An Unprecedented Event
April 14, 2020
As we see the world around us change from minute to minute due to the COVID-19 pandemic, it can be hard to know what to do when it comes to marketing and advertising for your store(s). It's a crisis unlike most of us have ever encountered in our lifetimes, but that doesn't mean we are completely unprepared. In fact, we can follow the same basic protocol as we do for most other disaster events like hurricanes, earthquakes, or flooding. Or can we? And what is that protocol?
Supply Chain Update
April 10, 2020
We continue to see challenges within the supply chain, along with many positive signs. There is still a short supply of COVID-19 products in our DCs and, for that matter, the entire supply chain. Our purchasing team is exploring every option to assure we are giving you options whenever possible. I'm proud to report that our Core Service Level on non-COVID-19 is holding up well.
Supply Chain Update
April 3, 2020
We continue to see a significant amount of change occurring within our supply chain. We haven't seen any real improvement in Coronavirus-related SKUs since our report last week. Many of those products are prioritized to health care providers and allocations remain in effect. We don't expect improvement on those products anytime soon.
From the Desk of Eric Divelbiss, CFO
April 1, 2020
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted by the US government. It allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. There are several different elements within the CARES Act, including a portion of the law known as the Paycheck Protection Program (PPP).
Update from President & CEO, Boyden Moore
March 31, 2020
As we continue to work together with you through the evolving health and economic crisis, I wanted to provide you a general update. At Orgill, we continue to be focused on 1) the safety and health of our employees and customers, 2) additional steps we can take to "help our customers be successful" during this time, and 3) maintaining frequent and clear communication with our customers as the situation develops.
Supply Chain Update
March 27, 2020
A great deal has transpired since our update a week ago. We have certainly seen unprecedented actions from our government to help slow new cases of the coronavirus as well as extending financial support for citizens that are in the most need from this economic downturn.
Marketing & Communications Update
March 24, 2020
The recent outbreak of the COVID-19 virus is impacting each of our Orgill retail hardware dealers in many ways. Thankfully, though many states have implemented restrictions on retail operations in general, most have also allowed hardware stores and home centers to continue operating because of the important role such stores have in supplying communities with critical products for their homes and businesses.
Supply Chain Update
March 20, 2020
Anyone watching the news is well aware of the impact the Coronavirus is having on the world economy. In regards to the supply chain we are a part of, outside of COVID-19 specific skus, as it stands today we are still in really good shape with our general merchandise.
Supply Chain Update
March 13, 2020
Quite a bit has transpired in the world over the last week with regards to the Coronavirus situation. Last week Boyden Moore sent out a letter to all customers emphasizing how seriously we were taking this matter.
Update from President & CEO, Boyden Moore
March 5, 2020
Since the beginning of the year, we have been monitoring the quickly evolving situation with regard to the Coronavirus (COVID-19).