Driving Growth: How CARQUEST Accelerated Distribution Efficiency with a System Integrator

The Client: CARQUEST

Meet CARQUEST, a rapidly expanding force in the North American auto parts market. With a vast network of nearly 60 distribution centers and over 4,000 retail stores, they operate as a vertically integrated supplier, offering an extensive range of both national brands and their own CARQUEST-branded products. Their business model thrives on aggressive pricing and the promise of next-day delivery, serving the critical needs of repair shops and individual customers alike.

The Challenge

Rapid growth is a powerful engine, but without the right infrastructure, it can quickly lead to operational bottlenecks. For CARQUEST, their commitment to low prices and rapid delivery meant their distribution system had to operate with peak efficiency. They encountered significant hurdles that threatened to slow their momentum:

• Cost Inefficiency: Operating two large, separate distribution centers created redundant costs and limited their ability to consolidate inventory effectively.
• Massive and Growing Inventory: To meet customer demand for hard-to-find parts, their central hub needed to manage an astounding 200,000+ SKUs (Stock Keeping Units – unique product types). Handling this volume accurately and quickly with existing methods was becoming a major bottleneck.
• The Need for Speed: The promise of next-day delivery across a vast territory (Oregon border to Mexico) for special orders demanded a fulfillment process that was not only fast but also incredibly precise.
• Outdated Workflows: Reliance on manual processes and paper-based systems in picking and shipping limited throughput and increased the potential for errors, hindering productivity.
• Complexity of Integration: Bringing together disparate elements – shelving, conveyors, software, and human processes – into one seamless, high-performing system felt like trying to conduct an orchestra where every musician played a different tune.

The Solution

This is where the expertise of a Material Handling System Integrator becomes indispensable. Think of a system integrator like the conductor of that orchestra, or better yet, the architect and general contractor for your operational space. FloStor Engineering stepped into this role for CARQUEST, providing the vision, design, and execution to transform their distribution challenges into a competitive advantage. FloStor didn’t just supply equipment; they delivered a unified, intelligent solution tailored to CARQUEST’s unique needs.

The Integrator’s Blueprint: A Custom Fit

FloStor’s approach to tackling this complexity began not with a catalog, but with a deep dive into CARQUEST’s operations. They understood that a successful solution had to align perfectly with CARQUEST’s specific distribution model and truck routing. As Jim McMurtrey, VP & General Manager of Auto Parts Wholesale, put it:

“The challenge was to create a solution which best fit our unique distribution channel and truck routing.”

FloStor acted as the architect, analyzing workflows, inventory profiles, and growth forecasts to design a system from the ground up that would optimize every movement within the facility.

Strategic Consolidation and Space Optimization

A cornerstone of the FloStor solution was the strategic consolidation of CARQUEST’s two previous distribution centers, totaling 180,000 sq. ft., into a single, modern 145,000 sq. ft. facility. This move, guided by FloStor’s design, immediately unlocked significant efficiencies:

• Reduced Operating Costs: Consolidating operations slashed redundant facilities expenses.
• Efficient Capital Allocation: Replacing two $6 million inventories with a single $8 million facility allowed for better management of capital while improving service levels.
• Increased Storage Density: Through smart layout and equipment selection, the new DC was able to stock more goods in 30% less floor area than the combined previous facilities. Inventory was intelligently organized by turnover volume and product type (standard, bulk, hazardous) to minimize travel time for high-demand items.

Building the Backbone: The Intelligent Conveyor System

At the core of the new DC’s operational efficiency is the sophisticated conveyor system designed and implemented by FloStor. This system acts as the automated highway for parts moving through the warehouse:

• Wave-Based Processing: Orders are grouped and processed in “waves,” handling up to 20 destinations simultaneously, which streamlines picking and packing.
• Smart Tote Tracking: Open-case orders are placed in reusable totes, each assigned a unique “license plate.” The conveyor system reads this identifier, knowing exactly where each tote needs to go.
• Automated Routing and Sortation: Once a tote is placed on the powered conveyor, the system automatically routes it to the correct shipping lane, ensuring orders are consolidated accurately and presented to packers in the optimal position.
• Designed for High Throughput: The system was engineered for a capacity of 12,000 totes/cartons per day, significantly exceeding their current average of 8,000 totes per day, providing ample room for growth.

The Digital Brains: Seamless Automation and Software

FloStor integrated the physical conveyor system with advanced software to create a truly intelligent operation:

• WMS Integration: The Warehouse Management System (WMS), integrated with CARQUEST’s enterprise and point-of-sale systems, serves as the central command, directing all movements and managing inventory in real-time.
• Paperless Workflow with RF: FloStor facilitated the transition to a paperless fulfillment system using RF (Radio Frequency) scanners.
  • Directed Picking: RF scanners guide order pickers directly to the exact location of each part, dramatically increasing picking accuracy and speed.
  • Instant Verification: Every pick and shipment is instantly confirmed via the RF system, eliminating manual data entry errors and providing immediate inventory updates.
• Intuitive Control (HMI): The system includes Human-Machine Interface (HMI) screens that provide operators with real-time visibility into system performance, throughput, and potential issues like jams. These interfaces use 128 different flowcharts to manage complex automation logic and diagnostics.

The Integrator’s Advantage: Project Management and Scalability

FloStor’s value as an integrator extended beyond the technology itself. They managed the entire project, coordinating equipment suppliers, installation crews, and integrating all the pieces. This single point of accountability meant CARQUEST could focus on running their business while FloStor handled the complexity of the build-out.

The results were clear and immediate. Jim McMurtrey highlighted the dramatic increase in productivity:

“Our productivity is definitely up. We were pulling approximately 300,000 lines out of two locations in a 13 hour shift. We now pull over 400,000 lines out of our new DC in a 10 hour shift. We are very proud of that.”

Further, FloStor designed the system with the future in mind:

• Built-in Scalability: The system was designed for easy expansion. A planned increase in the standard parts area’s capacity by 65% (adding four pick zones) was part of the original concept and facilitated by the modular design.
• Modular Components: The use of modular conveyor sections and plug-and-play controls makes future modifications and expansions straightforward, ensuring the system can grow with CARQUEST.
• Long-Term Vision: The new DC is anticipated to have a lifespan of over 25 years, with the potential to replicate the successful model on the same site when needed.

By partnering with FloStor Engineering, CARQUEST didn’t just buy equipment; they invested in a fully integrated, scalable, and intelligent distribution system that transformed their operations, reduced costs, and positioned them for continued leadership in the competitive auto parts market. FloStor provided the expertise to turn a complex challenge into a streamlined, high-performing reality.