Unlock Performance:<br>How Aftermarket Parts Operations Scale

Transcript

0:00
Welcome to the FORTNA Edge podcast.

0:05
Sam: Hi. I’m Sam, a Solutions Engineer specializing in distribution optimization.

0:09
Erin: I’m Erin, a Senior Consultant in warehouse automation, software and robotics. Today, we’re diving into the challenge of growing complexity in warehousing and distribution, specifically for the aftermarket parts segment.

0:20
Sam: Join us as we explore how leading distributors are modernizing their operations to expand capacity and productivity to deliver fast and flexible order fulfillment.

0:32
Erin: Let’s start with the big picture. The aftermarket parts industry continues to evolve at a geometric rate. Distribution centers are expected to support thousands of SKUs, from tiny components to bulky parts, as product lines continuously grow and change. When space is limited, but inventory storage requirements continue to grow. Finding the capacity to keep up can be a challenge.

0:54
Sam: And real estate isn’t getting cheaper. Expanding isn’t always an option, which means your performance depends on how intelligently you use the space you already have.

1:05
Erin: That’s where strategy meets design. The smartest facilities aren’t necessarily built larger. They’re built smarter. So with your experience working with supply chain leaders, what are some of the concerns they talk about when modernizing their operations?

1:18
Sam: Many organizations recognize that they need to evolve, but the path forward can feel overwhelming with so many process considerations and technology options. Supply chain leaders often struggle with figuring out where to begin without a clear roadmap or experienced guidance. It’s easy to get stuck in analysis paralysis, delaying progress and missing opportunities for optimization, efficiency and growth.

Another concern is today’s changing business landscape; there’s been a drastic rise in online sales for aftermarket parts. Just like in other industries, consumers are finding it more convenient to search, compare and purchase parts online with reviews and competitive pricing right at their fingertips. This shift requires distribution centers to modify their current processes to meet the unique challenges of e-Commerce fulfillment, in addition to their standard workflows. E-commerce puts consumers in the driver’s seat, amplifying the need for fast, accurate deliveries and seamless order return experiences.

2:24
Erin: Yep, exactly. These rising customer expectations add immense pressure on operations to improve picking speeds and reduce order cycle times with accuracy. And when you’re optimizing these processes, it’s critical to strike the right balance of automated and manual workflows. By using a mix of both, you will ultimately optimize labor costs and availability, improve accuracy and boost productivity while creating a safer work environment.

2:48
Sam: But many organizations approach automation in silos, which is hurting them. They improve picking or packing but ignore the impact on inbound or shipping. That’s where holistic design pays off. When technologies are properly integrated across storage, picking, replenishment and shipping, you can monitor, measure and manage throughput in real time. Let’s look at a real example. A major national auto parts retailer acquired a large competitor, creating a massive opportunity and an even bigger challenge. Two companies, two distribution philosophies. One company focused on daily replenishment and piece picking. The other operated on weekly bulk replenishment and case picking. Now they had to merge those models and do it fast.

3:26
Erin: What would you say were some of the key challenges they faced up front?

3:40
Sam: Well, for starters, they used different systems and strategies across their networks, which created a lot of inefficiencies and hurdles. Second, they were really limited in physical space that couldn’t support daily replenishment for every store. Third, they had an aggressive deadline. The entire integration had to be completed in under 24 months.

4:02
Erin: Yeah, that is a tight timeline. What did they ultimately end up doing?

4:06
Sam: The retailer partnered with FORTNA because they needed a systems integrator that could manage strategy, design and execution in parallel. The FORTNA team started by bringing every stakeholder to the table to align around a shared goal: optimizing inventory, real estate and transportation while keeping service levels high. The final plan was bold—build four new distribution centers, relocate one, retrofit two existing facilities, and consolidate two more DCs into one, all within 24 months. To hit the deadline, they had to design, install and operate simultaneously. In one section of a building, teams were stocking product while equipment was being installed in another. Every site required its own design based on product mix, volume and building size. To streamline sourcing, all material handling equipment was purchased under a master agreement for consistency and scale.

5:09
Erin: And the retrofits?

5:10
Sam: The network integration project happened while the facilities were operational and was delivered on time and under budget. The result was a unified 23-facility distribution network supporting more than 3800 stores and over 120,000 SKUs. Not one customer experienced disruption with order fulfillment. Daily replenishment became the standard, and customer service levels improved dramatically.

5:37
Erin: That’s what operational excellence looks like in motion—precision planning, parallel execution and a relentless focus on serving the retail customer.

5:46
Sam: It’s easy to get lost in the technology, but people are at the center of every successful transformation.

5:53
Erin: Automation works best when it increases productivity, removes repetitive strain, improves safety and helps teams focus on quality. When employees can see their impact on operations in real time, engagement increases.

6:06
Sam: That’s exactly what happened in this example. With live operational dashboards tracking productivity, the team could see how well they were performing by expanding real-time visibility into performance. The dashboards became a feedback loop for improvement and motivation to keep up the pace. If you’re leading an aftermarket parts distribution center today, there are three questions worth asking.

First, do you understand your bottlenecks and their effects on your network? It’s important to analyze your current processes and constraints to build an actionable and impactful roadmap.

Second, can your systems talk to each other? Disconnected technology is one of the biggest roadblocks to supply chain agility. When warehouse management systems, warehouse execution systems, warehouse control systems and other integration platforms don’t communicate, operations slow, data visibility declines, and teams fall back to manual workarounds. It’s important to remain product agnostic across different systems and suppliers, giving your operation the flexibility to adapt and scale.

And third, are you designing for today’s volume or tomorrow’s? The smartest distribution operations plan for scalability from day one. People often think more space is the answer, but there are several flexible solutions that can increase your throughput and storage capacity without increasing your footprint.

7:36
Erin: And working with the right partner is key. The complexity of aftermarket parts distribution isn’t slowing down, so you want to ensure that your partner has the expertise to help you select and implement the best-fit technology that is thoughtfully matched to the size of your operation and growth goals.

7:52
Sam: If there’s one takeaway from this discussion, it’s that optimization isn’t a one-time project. It’s a mindset.

8:00
Erin: The most successful aftermarket parts distribution operations treat modernization as a continuous process. They measure, adapt and refine with every new demand, every new skew and every shift in customer expectations.

8:13
Sam: The future belongs to those who can scale intelligently, combining expertise, data and technology to stay flexible no matter what comes next. Because the strongest operations aren’t just efficient today, they’re built to evolve tomorrow.

8:29
Erin: If this conversation sparked ideas, don’t stop here. You’ve heard how one distributor integrated an entire network. Now see how another operation reimagined its space from the ground up. The video case study, linked below, takes you inside a 680,000 square-foot facility built for speed, accuracy and scale. You’ll see how they tripled throughput, improved efficiency and created a system that fulfills orders within hours, not days.

8:53
Sam: It’s a real look at what modern distribution can be—automation, data and innovation working together. We’ll see you next time as we continue exploring how to move more product more accurately with less friction and greater adaptability.

Published/Updated 11/10/25