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08/17/2022

Orgill reports supply chain progress

Plus, a twist to the distributor’s 2023 market schedule.
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Boyden
Boyden Moore promoted the lineup of Exclusively Orgill brands.

An improved supply chain, fewer price change requests, and an additional live market in 2023: these were the basic bullet points of the State of Orgill webinar delivered by the Tennessee-based distributor’s CEO Boyden Moore.

Coinciding with Orgill’s online Fall Buying Event, Moore led off the update with good news on the supply chain front. As demand moderated and vendors improved their performance, “We are beginning to see sustained improvement in our supply chain recovery,” he said.

Moore presented a chart showing anticipating an end-of-the-year service level above 85 percent, up from the July level of 79.3 percent. “This has been our number one focus and will remain so until we are fully recovered to our traditional standards of service level above 96 percent.”

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service level
Orgill is working with vendors on plans to "close the gap" and return to pre-pandemic service levels during the first half of 2023.

A second piece of good news came in the form of an update on price changes. After managing through a period with an unprecedented level of price changes from vendors, the distributor feels that corner has been turned. 

“We are now seeing much lower numbers of price change requests—and some of these changes are now even decreasing prices,” Moore said. 

“We see some promising signs with an improving supply chain and are 100% focused on returning to our standards as fast as possible.”
Boyden Moore, Orgill CEO

The CEO's Orgill update also revealed the distributor's 2023 market schedule, which will be bolstered with an additional live event.

This year's scheduled featured a live event in the spring, and four online buying events. In 2023, Orgill is adding a live Fall event in Dallas, Aug. 2-3, co-locating with the new NHPA Independents Conference. 

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schedule
Orgilll updated its 2023 market calendar, adding a live event in August.

Moore’s Orgill update also included the following:

• Sales grew 40 percent over the past two years. Year to date in 2022, sales are up 10 percent. That growth surpasses the Census Bureaus’ growth figure for NAICS 444 retailers, which are up 6.2 percent year to date. 

• Orgill celebrated the one-year anniversary of the opening of the Rome, N.Y. distribution center, and completed in the first half of 2022 the expansion of the Hurricane, Utah distribution center.

• There are signs that private label products are picking up. Moore promoted Orgill's line of Exclusively Orgill products as alternatives for the increasingly price-conscious consumer. He added: “Fill rates on those items that we source directly from factories is over 96 percent.”

 

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