Editor’s note: PartsSource is a leading B2B marketplace and software provider specializing in the management of health care equipment. In addition to its robust software solutions, the company offers repair, maintenance, and consulting services. As a prime example of a B2B company that has transformed its order management, logistics, and last-mile delivery operations, PartsSource demonstrates how embracing innovative strategies can address the multifaceted challenges of today’s distribution environment.
In part two of this Q&A series, a trio of PartsSource executives — Kier Selinsky (Senior Director, Product Management); Kaitlin LaPlante (Vice President of Operations and Transformation, Parts); and Janet Michel (Vice President and General Manager, Strategic Partnerships and Operations) — discuss the challenges they faced and the solutions they implemented to enhance both operations and customer experience. Read part one here.
Digital Commerce 360: What new initiatives have been launched, are in progress, or are recently completed to improve order management, logistics, and last mile delivery?
PartsSource: PartsSource has launched several key initiatives aimed at improving order management, logistics, and last-mile delivery. These initiatives focus on enhancing supplier performance, increasing shipping reliability, and optimizing our inventory management to meet the growing demands of our customers.
PartsSource has established a resolute Supplier Performance Management Team whose primary focus is to enhance on-time shipping and improve overall supplier performance. This team collaborates closely with our suppliers to ensure they meet our ambitious standards for delivery times, quality, and consistency. By closely monitoring and managing supplier relationships, we can drive better outcomes and ensure that our customers receive their orders on time.
To improve visibility and oversight of our supplier relationships, we are upgrading our vendor management tools. These enhancements will provide better insights into supplier performance, order status, and potential delays, allowing us to take initiative-taking steps to prevent issues before they arise. The upgraded tools will also help us track performance more effectively, ensuring that we can maintain prominent levels of reliability and on-time shipping.
In recent months, we have also successfully increased our on-time shipping accuracy by more than 10 percent. This improvement means that our customers can rely on us for timely deliveries more than ever before. By enhancing our internal processes and collaborating closely with suppliers and carriers, we have been able to deliver shipments more consistently, which is critical for maintaining customer trust and satisfaction.
We have also made significant strides in improving our Estimated Ship Date (ESD) coverage, increasing it by over 10 percentage points. This improvement means that we are providing our customers with more reliable and accurate delivery timelines. Better ESD coverage helps our customers plan more effectively and ensures that they can rely on PartsSource to deliver parts when promised, which is especially important in healthcare settings where timing is crucial.
Recognizing the growing need for faster availability of high-demand, long lead time parts, we are executing a warehouse strategy to ensure availability of these items. By utilizing our warehouse space for storing parts with longer lead times, we are reducing waiting times and improving supply chain reliability. This strategy ensures that critical components are readily accessible, helping us meet urgent needs and reducing the time it takes for customers to receive essential parts.
PartsSource is actively improving its order management, logistics, and last-mile delivery processes through these targeted initiatives. From strengthening supplier performance with a resolute team to enhancing visibility with upgraded vendor management tools, we are continuously striving to provide our customers with more dependable, timely, and efficient services. These improvements will not only help us meet current customer expectations but also position us to better handle future demands.
DC360: How have the new distribution center and recent website enhancements contributed to more efficient order management, logistics, and last mile delivery?
PartsSource: The new distribution center and recent website enhancements have been critical in improving the efficiency of order management, logistics, and last-mile delivery, allowing PartsSource to better meet the growing demands of our customers and adapt to an evolving supply chain landscape.
The addition of our new distribution center has played a significant role in improving shipping accuracy and reducing shipping delays. With increased storage capacity and strategically located facilities, we can better manage inventory, especially high-urgency and high-volume parts. This improved inventory management allows for faster fulfillment and ensures that parts are readily available when customers need them most. By leveraging our warehouse for forward stocking, we can stay ahead of potential disruptions, such as supplier backorders or delays from manufacturers. The new distribution center helps mitigate these risks by ensuring we have critical parts in stock, even when other supply chain challenges arise, such as manufacturers closing facilities or consolidating operations.
Our recent website enhancements have further streamlined the ordering process, improving both order management and logistics coordination. The updates allow customers to easily track their orders in real time, providing them with greater transparency about shipping status and estimated delivery dates. These improvements help customers plan more effectively, reducing uncertainty and ensuring that they can rely on PartsSource for timely deliveries. Additionally, the website enhancements facilitate faster and more accurate order processing, minimizing the likelihood of delays and errors. This contributes to more dependable last-mile delivery, as customers can count on receiving their parts when promised.
The combination of our new distribution center and enhanced website capabilities has strengthened PartsSource’s ability to efficiently manage orders, streamline logistics, and ensure timely last-mile delivery. With forward stocking of critical parts, initiative-taking planning, and improved customer transparency, we are better equipped to navigate supply chain challenges and continue delivering reliable service to our customers. These advancements enable us to maintain prominent levels of service, even in uncertain times.
DC 360: What are the biggest challenges you face in these areas, and how are you overcoming them?
PartsSource: One of the most significant challenges is managing supplier backorders. With the ongoing trend of acquisitions and consolidations in the industry, some manufacturers are shutting down facilities or altering their operations. This can lead to backlogs and delays, making it harder to predict and fulfill customer needs on time. The unpredictability of these disruptions creates a ripple effect on our operations, making it harder to maintain accurate shipping schedules.
To address this, we have taken an initiative-taking approach to forward stocking high-urgency and high-volume parts in our warehouse. By doing so, we can ensure that we have critical parts available even when suppliers face disruptions or inventory shortages. This approach helps us reduce lead times and continue to meet customer demand, even in uncertain circumstances. By staying ahead of potential disruptions, we can maintain a reliable supply chain and ensure that healthcare providers have the parts they need when they need them.
Shipping accuracy and delays can often be a consequence of supply chain issues or unforeseen circumstances like transportation problems, weather events, or disruptions in manufacturing. Delays and mistakes in fulfilling orders can impact on our customers’ operations and, in healthcare, have significant consequences.
To tackle these challenges, we have enhanced our logistics systems by investing in better inventory management and real-time tracking capabilities. This helps us ensure that orders are processed more efficiently, and we can quickly address any potential issues before they become delays. By improving our internal operations and leveraging technology, we are better equipped to provide accurate delivery times and reduce errors. Our forward stocking strategy also plays a key role here, ensuring that we can meet customer needs without delays even when external factors disrupt the supply chain.
While supplier backorders and shipping delays present ongoing challenges, PartsSource is addressing them by proactively managing inventory, forward stocking critical parts, and enhancing our logistics capabilities. These strategies allow us to stay ahead of disruptions, ensure more accurate shipping, and continue meeting customer demands efficiently, even in times of uncertainty.
DC360: Can you share any key metrics, such as the number of orders shipped daily, last mile delivery statistics, and on-time delivery percentages?
PartsSource. At PartsSource, we are consistently focused on improving the efficiency and reliability of our operations. Here are some key metrics that highlight our performance in order management, logistics, and last-mile delivery:
Orders Shipped Daily: On average, we ship 2,400 orders per day. This volume reflects our commitment to meeting the high demand for medical parts and equipment, ensuring that healthcare providers have the resources they need to deliver quality care.
On-Time Shipping Accuracy: Currently, we maintain an on-time shipping accuracy of over 75%. While this is a strong starting point, we are actively working on initiatives to improve this metric even further. Our goal is to increase on-time shipping accuracy to more than 85% by the end of the year. We are focusing on optimizing our processes, enhancing our logistics infrastructure, and improving supplier performance to reach this target.
These metrics reflect our ongoing efforts to enhance operational efficiency and ensure that our customers receive timely deliveries, helping healthcare providers maintain smooth operations and ensure patient care is never disrupted.
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