Orgill Case Study

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Recently, a 500,000 square foot distribution center was dedicated by Orgill Inc. in Martinsberg West Virginia. This center is the latest in a series of facilities intended to improve and expand the services of Orgill Inc. to their customers.

About Orgill

Orgill Inc., founded in 1847, is the world's largest independent hardware and home improvement products distributor. Orgill carries over 50,000 different products and supports over 4,000 Hardware Stores and Home Improvement Centers in the U.S. and around the world. Orgill's headquarters are in Memphis, TN.

With its complete range of products and retail support services, it was the fastest growing hardware distributor during the 1990's.

To support this growth, Orgill added a fourth state-of-the-art distribution center located in Martinsburg, West Virginia to its distribution network. This new center will service the Mid-Atlantic and Northeast region.

Orgill's distribution system delivers superior customer service levels, which translate into competitive advantages to the independent retailers in its system.

Among those advantages are:

• Merchandise available in all warehouses to support a dominant assortment of products in the stores.
• Consistently high order fill rates that reduces the possibility of stock outs.

WEI and TZA's Roles

Orgill selected TZA, a logistics consulting company based in Long Grove, IL, to develop a functional design based upon Orgill's operational objectives for the distribution center. TZA services the distribution and material handling requirements of companies that manufacture and distribute consumer goods. TZA's core competencies include: strategic planning, material handling engineering, productivity improvement programs, and transportation system design.

To implement the system Orgill and TZA invited a select group of material handling firms to present their qualifications as integrators. Warehouse Equipment Inc. (WEI) was chosen to provide the Storage System, the Pick Modules and Conveyor System because of its breadth of experience, reputation in the industry, and competitive pricing.

WEI's unique set of capabilities as a Design/Build Material Handling System Integrator made it an ideal partner for the implementation of the distribution center’s systems. In this capacity WEI was responsible for the detailed Mechanical and Civil Engineering of the storage, order fulfillment and conveyor systems. Next, WEI's Project Management Group, working in close communication with Orgill's management, TZA, and the building contractor, scheduled a very aggressive installation and commissioning timetable. Finally, WEI's own Installation Group was able to ensure that the system build-out met or in some cases exceeded expectations regarding the tight schedule and the high quality expected by Orgill.

Project Highlights

The order fulfillment process at the 500,000 sq ft facility begins at the pick module from which orders are transported on a series of accumulation, belt and sortation conveyors to the shipping dock, where orders are palletized for shipment.