Success Story
Parts Warehouse
By Debbye Omlie and Ben Nelson
Quick: visualize everything around a dental chair, except the chair itself.
Now imagine all of the instruments that use water and air during a dental exam. Add in the tubing, fittings, values, trays, vacuums, foot controls, and other miscellaneous objects which you probably never notice while at the dentist, and you begin to get an idea of what Parts Warehouse is all about. to be exact, the company manufactures and distributes dental parts and assemblies throughout the United States and Europe.
Like most succesful businesses, however, the Parts Warehouse story has humble beginnings. Al Kennedy, Jim Anderson, and Cindy Heins met while working together throughout their years in the dental industry. According to Jim, "Parts Warehouse was Al's brainchild. He really saw the market need." In 1996 their plans turned into action, and Parts Warehouse was founded in a small Lynden warehouse. Though Al provided the initial vision, Cindy has handled the financial side of the business with Jim running the sales and marketing operations. In just one short decade, the trio has brought the comapany a long way from its early days. The corporate office is now tucked away in downtown Lynden, Washington where 23 employees build and ship dental parts to locations around the globe.
Operating in a niche market, the company has put an emphasis on nurturing a loyal customer base. Jim swears by providing superior customer service, and has implemented practices such as no minimum order requirements and no restocking fees on returns. Plus, the owners have never been afraid to get their hands dirty. In the early years, it wasn't uncommon to find Al, Jim, and Cindy assembling parts on a Saturday for a Monday morning shipment. The results of their hard work and dedication? Parts Warehouse has experienced tremendous growth, and positioned itself as "the" dental service parts supplier for manufacturers, dealers, and service techs in the U.S. and abroad.
As their business was rapidly expanding the owners sought advice from Tom Dorr. While the growth of a company is the dream of most owners, it also brings unforeseen challenges. Cindy will be the first to tell you that Tom has helped her to understand the importance of cash flow vs. income. "Tom has given us awesome support and guidance. He is a great sounding-board, and he continues to give us new tips that contribute to the bottom line," says Cindy. She adds that, "with this difficult economy, Tom has really helped Parts Warehouse focus on the importance of margins and efficiencies." Jim believes that "Tom helps us to see the big picture. We are so involved in the details it is hard to step back and see the big picture."
Flash forward to 2010 and the owners of Parts Warehouse are looking forward to continued work with Tom. When asked what she would do differently today Cindy notes, "I would be more aware that while growth is good, it can also be difficult. We would better manage growth from the very beginning. Now that the customer base is established, we are at a different stage and need to focus on different things." In other words, Parts Warehouse has merely begun a new journey. Tom and the staff at the Center for Economic Vitality are looking forward to offering assistance along the way.