Originally in a 55,000-square-foot building on Interstate Avenue, that operation was outgrown by 1993, Blechschmidt said. A move to nearby Swan Island offered a 100,000-square-foot facility that houses offices and the main parts inventory for
AED operations. Three additional locations in Vancouver, Hillsboro, and Tigard serve the professional auto repair and fleet businesses, he said.

In total, there are about 100 employees at the four locations, including nine outside sales personnel and 10 customer service reps in the main phone room at the warehouse, he added.

Blechschmidt, who said he will celebrate his 21st anniversary at AED this October, came from the jobber side of the business. He said he worked at  an auto parts store in Kalama, Wash., operated by his father and also worked for the former Wolf Auto Supply in Vancouver for two years.

"Without a doubt, the biggest challenge for AED has been the decline in the number of independent jobbers in our market," Blechschmidt said. "There are not a lot of new independent auto parts stores being opened up anymore, and there is a fair share of jobbers that are beginning to retire and sell or close their stores. This has been a challenge for all warehouse suppliers nationwide," he said.

"Most of us have noticed that the number of warehouse suppliers in our market has declined rapidly over the years," he said. "Only the strongest warehouses are still around."

Blechschmidt said AED has survived as a wholesaler because the membership has very loyal in supporting the company. "In turn, the warehouse has rewarded them (the members) by providing excellent inventory availability and service to help their stores succeed."

Since member jobbers are the owners of AED, they have a vested interest in making sure AED remains a healthy entity and able to supply their needs, Blechschmidt said.

"The jobbers have been faced with increased competition from retail chains and two-step distribution warehouses. The need for more inventory and the lower profit margins that increased competition has caused make it very challenging at the jobber level," he said. "Our members need the best inventory availability and consistent service from the warehouse partner to stay competitive and strong."

That inventory consists of $6 million in a full range of auto parts stocked at a typical retail or wholesale jobber, Blechschmidt said, including many longtime vendors such as Raybestos, Fel-Pro, Cardone, Davco, ATP, and Hastings.

"We've enjoyed tremendous success with new vendor partners that include Valeo Clutches, Prestolite Wires, OEM Ignition, Prestone Water Pumps, KYB Shocks & Struts, NAS New Rotating Electrical, and Denso 02 Sensors."

A unique agreement with nearby Snyder Tool Co., a second-generation family-owned wholesaler of tools and equipment, allows AED members to check inventory and purchase their needs from an extensive inventory of tools and equipment, Blechschmidt said.

"We're tied to their computers so members can check inventory directly and order parts," he said. "We pick up (at Snyder) regularly and handle the billing to our members. This has been a very good program for us and allows us to spend more dollars on inventory other than tools that our members need."

While AED does sell to nonmember jobbers, Blechschmidt said, it does not prepay daily freight or offer many of the programs that member stores are afforded.

AED spent about 18 years with IAPA buying and marketing group, and the wholesaler recently became a Parts Plus affiliate, Blechshmidt said. "We're just getting started, but 10 to 12 stores are already flying the (Parts Plus) banner, and about 25 have committed to support the Parts Plus store marketing program.

"Look for a lot of Parts Plus stores popping up this year in the Northwest," he said, adding that Parts Plus Car Care Centers will also be more visible as well as more jobber stores begin promoting the Parts Plus programs.

The AXD division of AED was opened in 2001 to provide parts and service to the professional-installer market in the Portland area, Blechschmidt said. "We've seen steady growth every year since we opened AXD."

"Counting our main warehouse, we have four locations and maintain very comprehensive inventories in each location," he said. "We have more than 150 years of auto parts experience in the customer service department, so our ability to help our customers get the right part is something we pride ourselves in doing better that any other supplier."

Blechschmidt said the company has "an extremely user-friendly" Internet ordering system that allows customers 24-hour access to inventory at every location. "We are the market leader with our Internet ordering system," he said.

As he touted the customer service staff at AED, Blechschmidt said he is also is proud of the well-tenured office and warehouse staff. "We have some outstanding people here at AED that make it all happen every day," he said; those include Mac Gritton, operations manager; Shelley Barger, accounting and HR manager; Chris Perrault, warehouse manager; Rick Livengood, AXD manager; Darel Ford, purchasing manager; and Gary Morris, marketing director, who also handles advertising and IT issues.

"We also have a solid membership base," Blechschmidt said, adding that the board of seven members assist AED management in determining what is in membership's best interest.

Officers include Larry Stuart of Stuart Auto Parts in Salem, Ore., president; John Gabrielsen, Gabe's Auto Parts, Nampa, Idaho, vice president; and Secretary Brandon Borden of Borden's Auto Parts in Raymond, Wash. Board members include John Novak of Novak Parts Supply in Klamath Falls. Ore.; Art Kirchover of Clackamas Auto Parts in Oregon City; Keith Hav, E&L Auto Parts, Hood River, Ore., and Ken Price of Westbay Auto Parts in Port Orchard, Wash.

Blechschmidt said that with drastic market changes over the last 10 years, it's difficult to predict the future. "The plan is for AED to continue to grow our AXD operation while at the same time maintaining top-level service to our member auto parts stores," he said.

"We will continue to provide competitive pricing, full service, and exceptional marketing programs to assist our members," he said. "After all, they are the reason AED is in business, and they own the warehouse operation."

Because AED is cooperatively owned, Blechschmidt is candid about the profit factors and direction of the business. "The reality is that there is no other supplier like AED in the Northwest," he said. "All other warehouse distributors are in business to make a profit for the ownership. At AED, the customers are the owners, so every bit of profit is distributed back to them.

"We are able to provide services and pricing advantages that other suppliers may not be able to provide to the customers since the bottom line is always the main concern. We make our decisions based first and foremost on what's best for our membership. For these reasons, AED is a very attractive option for an auto parts store owner," Blechschmidt said.