Smart Distribution, Human Touch: OpExChange Visits Northern Tool + Equipment in Fort Mill

By Mike Demos, OpExChange Coordinator for the SCMEP

Fort Mill, SC – October 21, 2025
Members of the OpExChange network gathered at Northern Tool + Equipment’s (NTE) 800,000-square-foot distribution center in Fort Mill for a deep dive into “Smart Distribution.” Hosted by DC Manager Amanda Stukitz, this benchmarking event highlighted how a family-owned company blends people, process, and technology to deliver operational excellence.

The visit focused on NTE’s major 2023 leap into automation with AutoStore and Packsize systems. Yet, while robotics and precision engineering impressed every visitor, what stood out even more was the company’s culture – one rooted in family values, workforce development, and continuous improvement.

A Legacy of Ingenuity and Family Values

Northern Tool + Equipment’s story began in 1981 when founder Don Kotula turned his family’s scrapyard experience into a tool distribution business in Minnesota. His mission was simple: help people get projects done affordably and reliably. Over four decades later, that same do-it-yourself spirit defines the company’s culture and customer base.

“We are the outdoorsmen, the DIYers – the ones who like to get our hands dirty,” Amanda told the group. “That’s who our customers are, and that’s who our associates are.”

That family-driven culture is tangible in Fort Mill. Many of the 200 team members have decades of service – some more than 30 years – and 20% of the workforce has been with NTE for over 25 years. “They’ve been through each other’s marriages, kids, and even losses,” Amanda said. “They take care of each other.”

Investing in People: Tools for the Trades

Northern Tool’s commitment to people extends beyond its own walls. The company is investing in the future of American manufacturing through its Tools for the Trades™ initiative – a nationwide effort to inspire and equip high school students for careers in the skilled trades.

Through this program, NTE donates professional-grade tools, welding equipment, and even sponsors hands-on projects like a six-foot monster truck built by students in Bryan, Texas, in partnership with Monster Jam. “It’s really about getting young people excited about the trades again,” Amanda said.

This initiative resonates strongly with the OpExChange community, many of whom face the same challenge: a shrinking pipeline of skilled labor. Northern Tool’s proactive approach serves as a model for how private industry can help rebuild that critical workforce.

The Fort Mill Distribution Center: Smart Automation, Skilled People

The Fort Mill DC, one of three in NTE’s network, supports both retail and e-commerce operations across the Southeast. It processes over 600 thousand parcels annually to replenish retail stores each year.

A major capital investment in 2023 transformed this site into a showcase of smart automation. The Swisslog AutoStore system – featuring 23,175 bins and 62 autonomous robots – now handles small-item storage and retrieval with remarkable efficiency. The dense grid design reclaimed nearly 50,000 square feet of floor space, while dramatically improving speed, accuracy, and ergonomics.

Initially, the shift from manual picking to robotics created anxiety among associates. But NTE’s leadership turned apprehension into empowerment. They selected “super users” from the shop floor to help implement and train others.

One of the participants asked whether there was any resistance to automation. Amanda acknowledged that some associates were initially apprehensive. “They were nervous –  this was new technology, and it replaced a very manual, physical process,” she said. One story captured that journey perfectly. A 66-year-old associate, whose previous role had been eliminated, was reluctant to move into the new AutoStore area. “She was unsure at first,” Amanda recalled, “but by her second day, she had the second-highest pick count in the department.” Today, that same associate is thriving – engaged, confident, and proud of her work. “Honestly,” Amanda added, “she probably wouldn’t still be here if not for this opportunity.”

Rather than replacing people, automation created new career paths – in system operations, maintenance, and utilities. “It’s a different kind of work,” Amanda explained. “The robots move the product, but our people bring the quality, care, and problem-solving that make it all work.”

Packsize: Smarter, Greener Fulfillment

The second major innovation – Packsize X5 on-demand packaging – adds sustainability and precision to the outbound process. This system automatically cuts and forms boxes to the exact dimensions of each order, reducing cardboard waste and freight costs while eliminating the need for filler material.

“It’s one of those technologies that’s great for business and for the planet,” Amanda said. The integration of AutoStore’s high-density picking with Packsize’s real-time packaging created a lean, efficient flow from order to shipment – a model admired by many visiting OpExChange members.

Continuous Improvement as a Way of Life

Beyond automation, what impressed visitors most was Northern Tool’s commitment to continuous improvement. The Fort Mill DC conducts at least two formal Kaizen events each year, engaging cross-functional teams to address challenges such as dock-to-stock times and outbound efficiency.

“If a process doesn’t feel right, we step back and look at it,” Amanda shared. “We want the best flow – and above all, a safe one.”

One long-tenured associate even earned a Green Belt certification last year, further proof that the company’s investment in people is ongoing.

The Human Side of Smart Distribution

After the tour, the group reconvened for feedback and discussion – sharing best practices and ideas that could help both Northern Tool and other South Carolina manufacturers. Attendees left with not only new insights but also a generous bag of Northern Tool-branded gear – including copper knives that never need sharpening, a “Puffy Vest” koozie, sunglasses with a bottle opener, and a mini multi-tool – a fitting nod to the company’s practical, can-do identity.

As one participant noted, the Fort Mill site reflected more than advanced logistics. It embodied a philosophy the OpExChange community embraces: operational excellence isn’t just about automation – it’s about people driving innovation through better processes and smart technology.

Amanda summed it up best:

“We’re proud of how far we’ve come, but we’re still learning every day.”

About Northern Tool + Equipment

Founded in 1981, Northern Tool + Equipment is a family-owned retailer and manufacturer serving hardworking professionals and DIYers across the U.S. With over 130 stores and three major distribution centers, NTE builds and delivers the tools that keep America running. Through its Tools for the Trades™ program, the company also invests in the next generation of skilled workers – inspiring students to build, create, and lead.
www.northerntool.com

About OpExChange

The OpExChange, a program of the South Carolina Manufacturing Extension Partnership (SCMEP), is the only peer-to-peer network of manufacturers and distributors across South Carolina. For over 23 years, this collaborative group has helped member companies improve performance through benchmarking, best practice sharing, and collective learning. Member companies regularly host site visits and events, offering real-world examples of industrial automation, lean manufacturing initiatives, workforce engagement, and leadership development. It is an invaluable resource for South Carolina manufacturers seeking to learn from others on similar operational excellence journeys.

If your company is interested in joining this collaborative effort to strengthen both your operation and South Carolina’s manufacturing community, reach out to Mike Demos at mdemos@scmep.org. Visit www.OpExChange.com for more information on joining and a list of upcoming plant visits.

Reference Section for OpExChange members

OpExChange Members – Access Videos and Pictures from the visit on the OpExChange Portal. This is open to any employee at OpExChange member sites. (If you cannot access the Portal, request login instructions from Mike Demos.)