12 | Orgill Case Study THE PROCESS OF IMPROVEMENT The CNRG team typically approaches a project by looking at an operation’s profit and loss statements and drilling down into several key performance indicators—and identifying opportunities to make incremental changes. With the new West Helena Home Hardware, they examined how they could impact: “Even if you have a good ongoing business, there is always tweaking you can do and efficiencies you can find,” Sieggreen says. “This is standard operating procedure at CNRG. We do this with all our brands, all the time. We learn by doing. That’s another reason why we are able to extend this kind of approach to Orgill’s entire customer base. We understand how to drive incremental profitability within an operation. We do it with the CNRG stores, and we can use all that knowledge to help other retailers do it as well.” The concept of CNRG brands serving as retail incubators for best practices and ideas is really at the heart of CNRG’s mission. According to Sieggreen, CNRG is engineered to drive continuous improvement within its brands and share what it learns with Orgill’s entire customer base. “We don’t learn just by trying concepts at the brands and stores that make up our retail network, though that is a highly important part of what we do,” he says. “We also learn every time we acquire a business. We closely examine what they were doing well and what areas might need improvement and we then learn from that and integrate those practices, where appropriate, into our standard operating procedures.” Because CNRG has brands that represent everything from convenience hardware stores to pro-focused lumber operations, it has a wide range of retail labs where they can test everything from product assortments to loyalty programs. And, when it comes to functions such as retail management, advertising and marketing, CNRG works closely with Tyndale Advisors, another wholly owned subsidiary of Orgill. While Tyndale didn’t play a direct role in the transition of H&M Lumber Company to West Helena Home Hardware, the Tyndale team does work directly with Home Hardware on management functions, advertising and marketing, just as they do with other CNRG brands and Orgill customers. Similar to CNRG, Tyndale Advisors utilizes scale to create efficiencies for the retail operations it serves. Tyndale Advisors offers expertise in a variety of retail management functions ranging from strategic planning and human resources to the creation of branding, marketing, e-commerce and website design and development. TOP-LINE SALES GROSS MARGIN PAYROLL EXPENSE OTHER EXPENSES
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