Federated Expands Co-Man Warehouse With 87,000 Square Feet Addition -

Federated Expands Co-Man Warehouse With 87,000 Square Feet Addition

The Federated Auto Parts Co-Man warehouse, located in Staunton, VA, has expanded again with the addition of 87,000 sq. ft. of space. With this addition, Federated is also revamping the entire operation, adding more flow pallet racking, conveyers and mezzanine space to improve efficiency and handle the rapid growth. The project is expected to be completed by mid-April 2012.

The Federated Auto Parts Co-Man warehouse, located in Staunton, VA, has expanded again with the addition of 87,000 sq. ft. of space. With this addition, Federated is also revamping the entire operation, adding more flow pallet racking, conveyers and mezzanine space to improve efficiency and handle the rapid growth. The project is expected to be completed by mid-April 2012.

“Federated’s Co-Man warehouse is a win-win for members and suppliers,” said Larry Pavey, who serves as president of the Co-Man business unit for Federated. “Our Co-Man program allows for collaboration to increase efficiency and effectiveness through the entire transaction chain. For our suppliers, we consolidate volume from approximately 70 members into one order which saves the suppliers in a number of areas including order processing, warehousing, freight and handling, manufacturing, administration, and sales and marketing. For members, the consolidation of more than 65 suppliers into one order allows for inventory efficiency and added sales.”

The Federated Co-Man program began in 1999 when Federated members decided to open a jointly-owned warehouse. The operation opened in 2000 with 20,000 sq.ft. of warehouse space and has seen volume grow double digits each year since its inception, expanding numerous times over the years to meet the rapidly growing demand of members. Federated members have internet access to the Co-Man warehouse to check inventory, place orders, download descriptions, images, attributes and bar code information as well as receive monthly updates with new part numbers and price changes.

The Co-Man program is owned completely by the Federated membership with management decisions and direction made by a council of 12 members who serve on a rotating basis. The Co-Man council is headed by David Wesselman, president of longtime Federated member KOI Warehouse. 

“Most of our members order from Co-Man at least weekly or more often and have better service, increased ROI, lower returns and many other benefits,” continued Pavey.  “Many of our import direct lines come through our premium North American suppliers so that we can be confident about product design and quality, and can work together to reduce redundant handling costs and inventory investment. We believe that the Federated Co-Man program is truly a win-win collaboration with some of our best suppliers.”

For more information, visit www.federatedautoparts.com.

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The True Cost Of Comebacks

Comebacks are a hot topic today. You need to track all comebacks, determine the reason (tech error, part error, training issue, other) and then calculate the true cost of the comeback.

By Joe Marconi of Elite
Comebacks are a hot topic today. You need to track
all comebacks, determine the reason (tech error, part error, training issue,
other) and then calculate the true cost of the comeback.
Here are a few things to consider:
• The loss of time when performing the comeback; time that the tech can use to
perform other work and generate profit;
• The misc costs, such as overhead costs, supplies, cleaners, etc.;
• Towing costs, rental, etc.;
• Cost to morale;
• Reputation damage; and
• Reduction to your profit margin.
For every part issue, you need to
inform your supplier. Sit down with suppliers on a regular basis. Don’t return defective
parts until you have listed the parts, and maintain a report. Document
everything.
Part issues are increasing. Every shop
owner I speak to is frustrated over this.
Remember, comebacks kill your bottom
line. The more comebacks you have, the more they’re killing your profits.
This article was contributed by Joe Marconi.
Joe is one of the 1-on-1 business coaches who helps shop owners through
the Elite Coaching Program, and is the
co-founder of autoshopowner.com.

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