Central Network Retail Group (CNRG) operates 49 hardware stores, home centers and lumberyards that represent 12 branded companies in 10 states. Founded in 2011, CNRG’s acquisition strategy often focuses on helping companies challenged with succession planning and generational transfer of ownership. CNRG operates without a centralized corporate headquarters, and its approach is to find better ways to manage and operate its companies that can be standardized across its portfolio.
Only BlueTarp can handle the scope and scale of what we're trying to do.
- Boyden Moore, President CNRG
CNRG benefits from BlueTarp’s best-in-class credit program:
- Customizable by company and customer
- Guaranteed cash flow supports growth
- Surprise-free accounts receivable
- Simplified, centralized credit process
A consistent, professional credit infrastructure across all stores
Before BlueTarp, CNRG President Boyden Moore notes that their companies had varied credit practices and different approaches to accounts receivable. Early on, CNRG knew they needed to find a way to standardize their credit processes with best practices for all stores.
Working with BlueTarp, CNRG is able to have all of their stores' credit programs managed by one operation, rather than building and managing multiple programs themselves. Today, one of the first things CNRG does with a new acquisition is get their accounts transitioned to the BlueTarp program. And while BlueTarp manages all of CNRG's stores' credit programs, the approach is not one size fits all.
"BlueTarp's program empowers each store to manage its lines, terms and customer service, while providing consistency on credit decisions, risk protection and cash flow across all our companies," notes Boyden. “This allows us to work with our customers in a personal way—the same way we would if we were running our own credit program—and that’s an important aspect of our business.”
With the burden of building and operating a credit management process for close to 50 companies removed, CNRG can focus more on their customers and growing their business. And when it comes to the credit program’s customer service, Boyden appreciates that BlueTarp takes care of customers the way their own stores would want to take care of their customers. He notes that the level of customer service BlueTarp provides would be impossible for them to replicate without building their own credit management capabilities.
Eliminating credit risk and focusing on growth
One of the biggest benefits of working with BlueTarp has been how they help CNRG manage credit risk and eliminate surprises when it comes to accounts receivable. With BlueTarp, every sale by a CNRG company becomes a guaranteed payment, eliminating worries about when or whether the customer is going to pay. And that guaranteed cash flow also supports the company’s growth strategy.
“We want to grow the business quickly, and tying up cash in accounts receivable is not something we want to do with our stores,” says Boyden. “Taking the risk out and freeing up the cash so we can grow the business are two big reasons we feel BlueTarp is the right partner for us.”
Looking ahead, Boyden feels that CNRG is well positioned no matter what the future might bring. With BlueTarp, they no longer have to manage the risk when the next turn in the economy happens. CNRG is also able to offer a best-in-class credit management process without investing in building or maintaining it.
“A big part of why we recommend BlueTarp to other dealers of any size is their ability to take away the risk of managing accounts receivable without having to make a big investment in building your own capabilities,” offers Boyden. “With that risk and responsibility off your books and your shoulders, you can focus on more important aspects of your business.”