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.

“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.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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