MHI Solutions Improving Supply Chain Performance
BY MICHAEL MIKITKA, EXECUTIVE VICE PRESIDENT OF MHI KNOWLEDGE CENTER AND WERC DIVISION
WHEN NORTHERN TOOL + Equipment faced unprecedented growth pressure in 2020, the company’s distribution operations were forced into a moment of truth. Demand was rising rapidly, fulfillment expectations were expanding and the existing network—while functional—was not designed to scale at the pace required.
For Mike Prochaska, General Manager of Distribution Center Operations, the situation called for more than incremental fixes. It required a disciplined, proven framework for operational improvement.
Fortunately, this wasn’t his first time facing that kind of challenge.
A PROVEN PLAYBOOK FROM PRIOR EXPERIENCE
Long before joining Northern Tool, Prochaska experienced the impact of WERC’s Facility Assessment and Certification Program firsthand. At a previous organization, he used the program to evaluate operations, identify gaps and implement structured improvements.
“Nearly two decades ago, at a previous employer, the facility I managed was the first one assessed using WERC’s framework. We later repeated the process to re‑certify that operation a few years later,” Prochaska recalled. “When I joined Northern Tool, I knew WERC’s facility audit would be incredibly valuable because I’d already seen how it connects process evaluation with measurable outcomes.”
That experience also shaped his thinking on what effective benchmarking should look like, and why objectivity matters.
“Rather than relying on internal assumptions or legacy practices, it’s important to go through a third‑party assessment for an unbiased and fact‑driven perspective,” he said.
Steve Murray, Lead Auditor for WERC’s Facility Assessment and Certification Program, agreed. He’s evaluated facilities on behalf of WERC since the beginning and has worked with Prochaska three times.
“The program provides an objective framework for evaluating warehouse operations against recognized best practices,” Murray explained. “In our experience, every facility—regardless of its performance level—benefits by gaining clearer visibility into opportunities for improvement.”
Beyond identifying gaps, the assessment delivers actionable insights that help organizations prioritize initiatives, strengthen performance metrics and support informed operational and capital decisions, added Murray.
“It establishes a consistent standard that enables continuous improvement and, for many organizations, the certification itself supports a stronger competitive position,” he said.
SCALING A NETWORK THAT WASN’T BUILT TO SCALE
Northern Tool operates four distribution centers (DCs) nationwide, each playing a distinct role in supporting the company’s retail stores, e‑commerce, wholesale and manufacturing operations.
The two largest facilities—Fort Mill, South Carolina (740,000 square feet) and Arlington, Texas (440,000 square feet)—are the most automated, running an AutoStore robotic system and a fully automated pick module respectively. Two other Minnesota DCs are smaller and far more manual: Savage (170,000 square feet) and Faribault (106,000 square feet, which combines a manufacturing plant with its own warehouse and a separate DC).
When Prochaska joined Northern Tool in July 2020, the company was experiencing significant pandemic‑driven growth. His first assignment was to modernize the Savage and Faribault operations, which had historically operated independently from the rest of the network with little standardization between sites.
“At that time, Savage’s e‑commerce fulfillment was limited to select zip codes in Minnesota and Wisconsin, and the facility supported only 17 retail stores,” he explained. “I was charged with expanding e‑commerce coverage across the entire Midwest and doubling retail replenishment capacity without adding warehouse space.”
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