Orgill's distribution empire expands through Rome, N.Y.
ROME, N.Y. — It used to be said that the logistics division of a typical retail business would get little attention from customers and corner-office executives – until something went wrong.
Those days are over. The global pandemic has elevated the hardware and lumber industry supply chain from a behind-the-scenes service to a front-and-center, mission-critical, 24-7, top priority. Case in point: a recent HBSDealer survey asked readers to describe their company’s biggest challenge in the spring of 2021. Supply chain (and the related issue of pricing) generated a whopping 80% of the votes.
Against this background, Memphis, Tenn.-based Orgill is flexing its distribution muscle with the opening of a new distribution center in Rome, N.Y., the company’s eighth. The new facility is remarkable both for the state-of-the-art features culled from Orgill’s book of best practices and industry innovations, and the accelerated timeline used to build it from scratch.
Growth is a tradition at Orgill, founded in 1847. The company grew to sales of $1 billion in 2006. In took 10 more years to hit the $2 billion mark. And in 2020, Orgill crossed the $3 billion milestone. That kind of hockey-stick growth doesn’t happen in the distribution industry without intense focus on the art and science of moving products from points A to B with military-like precision and efficiency. A late-spring tour of the upstate New York facility as it was preparing to bring its considerable powers online revealed a number of synergies, strategies and tactics that represented the best ideas in distribution, and some of the best practices from existing DCs.
Mark Scanlon, VP of Northeast distribution for Orgill, describes the Rome distribution center as a “team effort.” Not only to get the facility up and running, but to keep it humming. “The phrase you’ll hear us use again and again is ‘miles and footsteps,’” he told HBSDealer. “The idea is to minimize the miles logged bringing product to customers, and the footsteps made by associates here in the building.”
For every redundant mile eliminated and unnecessary footstep avoided – whether that’s footsteps to turn off the lights or shovel the walkway -- the distributor increases its efficiency and saves dollars.
There is no shortage of statistics to describe the Rome facility: 68 dock doors, 24 receiving doors, a 778,000 sq. ft. footprint. But those numbers can only tell part of the story of how Orgill is making use of the space. If one measure the area of the three-level re-pack module, the usable space expands to well over a million sq. ft.
With the addition of Rome, the company operates a system of eight DCs – as far west as Post Falls, Idaho, and as far south as Tifton, Ga. The launch of the Rome, D.C., will bring several benefits to Orgill nation, Moore said. Obviously, it will facilitate deliveries in the fast-growing Northeastern United States. It will also relieve pressure on Orgill’s Inwood, W.Va. distribution center, which was bearing the brunt of the pandemic-induced demand from the region. Moore says benefits will also trickle down to the Midwest and South areas through various changes in routing plans.
And those benefits are coming with a sense of urgency.
It hasn’t been an easy environment for operating as a retailer, Moore said. And the same goes for building a distribution center, a task burdened by its own unique supply challenges, such as a shortage of racking or trucks.
“Despite all of the similar supply chain problems that we've been dealing with as a supplier, these guys here in Rome have kept this project absolutely on track on an accelerated timeline,” Moore said. “And that’s been amazing.”