Harnessing the power of the cooperative network

When the team at Federated Co-ops set out to build a new service center to repair and maintain the cooperative’s rolling stock, they knew they had their work cut out for them.

They had recently purchased a former welding shop in Ogilvie, Minn., and the space required an overhaul and buildout from the ground up, including purchasing new equipment and associated inputs.

“We knew we wanted to bring in Cenex^® lubricants with the new shop,” says John Swanson, procurement manager for Federated Co-ops. “We had used Cenex lubricants in the past and our technicians and customers appreciated the reliability and performance. That’s the quality we wanted to prioritize here.”

“It wasn’t until we began to discuss product orders with our district manager that we realized CHS has a dedicated energy equipment team that could help us with nearly every step of this project.”

Investing in the cooperative system

With a focus on comprehensive support and long-term efficiency, the Federated team contracted CHS energy equipment to support the shop’s buildout.

“We considered competitive bids from several suppliers, but we were really looking to work with a partner we trust, who is more than an order-taker and that understands our big picture,” says Federated CEO Mike McMahon.

With an expanded, better equipped service facility, the Federated team aimed to reduce operating costs by bringing the majority of its vehicle maintenance in house.

McMahon notes the project, which was partially funded by the co-op's patronage earnings, was an opportunity to invest in the cooperative system in more ways than one.

“We saw how much we had to spend outside the organization on parts and labor and knew this project would bring a clear ROI back to our patrons.

“To invest earnings back into the business so that we can ultimately reduce costs and be more efficient, is part of our long-term vision to set up our co-op and members for success,” says McMahon. “To respect that investment, we knew we needed to focus on quality and build something made to last, so this shop can continue to deliver for our members long after me and my team are gone.

“We knew CHS could bring full service and a network of quality solutions to the table, but knowing CHS team shares our cooperative values, we could trust they’d bring the collaboration and dedication we expect, because they understand what this project means to our member-owners.”

Federated Co-op's new service center has been equipped to bring the majority of the organization’s repair work in house, helping the co-op increase efficiency while reducing maintenance costs.

Crafting custom solutions

As the project got underway, the Federated team discovered several unique challenges with their original shop plan. The CHS energy equipment team was able to pivot and source custom solutions to fit the tight space and meet project objectives.

“Containment for our bulk oils in particular was a hurdle we hadn’t anticipated,” notes Swanson. Federal rules and regulations designed to keep those products safely stored would require an entirely new position for bulk storage within the shop’s compact layout.

“The current regulations were a learning curve for us, but our CHS partners found a solution that wouldn’t require starting from scratch on a whole new layout,” says Swanson.

The energy equipment team sourced a new stackable solution to meet the tank sizes Federated’s output would require and built a custom containment structure to match. Other custom features, including a self-serve drive-through window where drivers pick up products outside regular office hours, were scouted by CHS energy equipment to meet Federated’s future needs.

“They didn’t just consult on our original plans” Swanson says. “They listened carefully, understood how we were planning to use the space and brought us creative ideas to give us even more efficiency.”

Leveraging cooperative connections

The CHS energy equipment team also drew from their experience and connections across its network to source solutions to meet Federated’s unique needs.

The co-op's team planned to digitally track and analyze the shop’s use and output of products like DEF, but struggled to find a solution that fit the project budget.

The CHS energy equipment team scoured its vendor network to identify a more affordable software supplier that could support the monitoring capabilities Federated required and could be easily implemented.

The energy equipment team also helped Federated find vetted resources for components of the process CHS couldn’t support.

“We knew CHS couldn’t perform physical installation of equipment, but when our initial bids from vendors came back well out of our price range, they found a skilled installer that was more economical and fit within our budget,” says Swanson.

“Sourcing an installer wasn’t the CHS team’s responsibility, but they wanted to set us up for success. They were able to draw on relationships and connections we would have never found on our own.”

With the help of CHS energy equipment, incorporated custom solutions to meet the needs of Federated’s current and future operations.

Prioritizing success

Although the team encountered obstacles throughout the shop’s construction, Swanson notes the energy equipment team’s dedication, collaboration and flexibility were key to the project’s success.

“Every time we encountered a curveball, CHS ran with it, faced it head-on and hunted down an answer. And they weren’t afraid to explore new ideas,” says Swanson. “We weren’t boxed in and could collaborate as partners through each step.”

Swanson also notes the CHS team provided consistent communication and on-site support.

“They went above and beyond to be our eyes, ears and boots on the ground. We knew the team took this seriously so our success was their success,” says Swanson. “Without the level of support they provided to get this right, I don’t think we’d have the state-of-the-art facility we have today.”