Trailblazer January 2005

Central Distribution Center Update

We have been very busy moving the majority of our inventory into the new Central Distribution Center located in Hanover, Pennsylvania. During November and December, we moved over 2,000 pallets of material along with a large amount of warehouse racking. This huge task was orchestrated by our employees in an extremely efficient manner. However, change always introduces a few bumps in the road. Our initial planning included a transition period where everyone would have to acclimate to new systems and responsibilities.

At this time, we are fine-tuning many of the details of our new procedures, establishing the system to check all orders thoroughly and are very excited about the development of a Central Distribution Center. It is quite a sight seeing 400-foot aisles of stocked ceramic tile throughout the main 100,000 square foot warehouse. We have converted our order-pulling process to an assembly line method with various checkpoints along the way.

As far as the system for pickup orders at the service centers, many of our customers are beginning to appreciate the ability to get in and out of our warehouse quickly. Most of the pickup orders are being assembled in Hanover and shipped to the service center complete. Actual time spent picking up an order has been reduced significantly.

We still have a lot to learn about the new system and to tweak it up to work at top efficiencies. Please feel free to contact Jim Vogel or Steve Vogel if you experienced any decline in service levels. We want to hear your comments. For instance, if we are not stocking an appropriate level of setting material at the service centers to meet your pickup order needs, we will make the adjustments to bring our stock levels to meet your requirements.

The ultimate goal is to provide our customers with the most efficient warehousing distribution services available in the ceramic tile industry.

Warehouse Space Available

With the move to a Central Distribution Center, available space has been created in the following locations:

HARRISBURG, PENNSYLVANIA
10,000 - 15,000 SQUARE FEET

BALTIMORE, MARYLAND
5,000 - 22,000 SQUARE FEET

TROY, VIRGINIA
5,000 SQUARE FEET

If your warehouse is getting tight and one of these locations might be convenient for you, please call Jim Vogel at (800) 422-6860, ext.4201.

2005 Price List
Announcements

Due to the unusually large number of manufacturers who have announced or are planning price increases, CONESTOGATILE will be processing periodic mailings that will only include price list updates without the normal inclusion of our TrailBlazer newsletter.

We expect to update a large percentage of our price lists during the first several months of 2005.

What's New?
SCHLUTER is starting an in-house training campaign for dealers and contractors interested in learning more about SCHLUTER'S line of diverse installation products. Learn about maintenance-free shower systems, edge protection and transition profiles and the popular Ditra System for tile and stone underlayment. Contact SCHLUTER at 1-800-472-4588 to arrange a	presentation with SCHLUTER and CONESTOGATILE Rep-resentatives. Suppliers of glass tiles such as CROSSVILLE continue to emphasize the importance of using premium liquid additives such as LATICRETE 333 for the installation of glass tiles.	SENECA TILES has changed the look of their glazed and unglazed quarry tile line. The traditional rounded corner has been changed to a squarer corner, giving the product a more contemporary look. CONESTOGATILE Sales Re-presentatives are providing mini sample panels