Supplying The Demand
By Patrick Mayock
Smart Business Akron/Canton | October 2007
A. Ray Dalton always says ‘yes’ to spur growth at PartsSource LLC.
Pick up any book on the fundamentals of business, and the notion of supply and demand will invariably be in one of the first few chapters.
Yet, how often do suppliers actually meet the increasing demands of clients?
At PartsSource LLC, A. Ray Dalton aims for always. The president and CEO of the hospital replacement part supplier strives to create a client-supplier relationship where, as the company motto states, “The answer is yes!”
To make good on that claim, Dalton and his team have created an alliance of suppliers to ensure parts support all 2,500 separate makes, models and modalities of hospital equipment. Aptly dubbed the National PartsSource Alliance, this vendor-partner network allows the company to meet customer demands even when parts are unavailable in-house.
In such scenarios, PartsSource contacts one of 6,500 vendors on the open market to secure the best pricing options for customers. The company then contacts the customer within two hours to relay product and pricing information.
To help clients order and manage their parts purchases more efficiently, Dalton also oversaw the introduction of the Web-based application, myPartsSource.com.
In the past, customers had to call suppliers, place an order and wait for a call back regarding availability and pricing. Now, they need only visit the online site to gather all the necessary information almost instantaneously. In addition, the site allows clients to place and manage orders from suppliers other than PartsSource.
While the system provides obvious benefits to customers, it has certainly paid off for PartsSource, as well. The company has significantly increased its revenue stream with four major hospital groups since its introduction, a 236 percent increase from 2005 to 2006, and projects a 214 percent increase in 2007.
This revenue increase pales in comparison to the company’s overall performance. During the past five years, PartsSource experienced a 1,036 percent increase in total revenue, just over $37 million. In that same period, it has added 96 jobs to the local economy in Summit County, a 685 percent increase since 2002.
With plans to double its existing work force over the next 18 months, PartsSource shows no signs of slowing down. As long as Dalton consistently offers the supply, the demand, invariably, should follow.
Smart Business Akron/Canton | October 2007
A. Ray Dalton always says ‘yes’ to spur growth at PartsSource LLC.
Pick up any book on the fundamentals of business, and the notion of supply and demand will invariably be in one of the first few chapters.
Yet, how often do suppliers actually meet the increasing demands of clients?
At PartsSource LLC, A. Ray Dalton aims for always. The president and CEO of the hospital replacement part supplier strives to create a client-supplier relationship where, as the company motto states, “The answer is yes!”
To make good on that claim, Dalton and his team have created an alliance of suppliers to ensure parts support all 2,500 separate makes, models and modalities of hospital equipment. Aptly dubbed the National PartsSource Alliance, this vendor-partner network allows the company to meet customer demands even when parts are unavailable in-house.
In such scenarios, PartsSource contacts one of 6,500 vendors on the open market to secure the best pricing options for customers. The company then contacts the customer within two hours to relay product and pricing information.
To help clients order and manage their parts purchases more efficiently, Dalton also oversaw the introduction of the Web-based application, myPartsSource.com.
In the past, customers had to call suppliers, place an order and wait for a call back regarding availability and pricing. Now, they need only visit the online site to gather all the necessary information almost instantaneously. In addition, the site allows clients to place and manage orders from suppliers other than PartsSource.
While the system provides obvious benefits to customers, it has certainly paid off for PartsSource, as well. The company has significantly increased its revenue stream with four major hospital groups since its introduction, a 236 percent increase from 2005 to 2006, and projects a 214 percent increase in 2007.
This revenue increase pales in comparison to the company’s overall performance. During the past five years, PartsSource experienced a 1,036 percent increase in total revenue, just over $37 million. In that same period, it has added 96 jobs to the local economy in Summit County, a 685 percent increase since 2002.
With plans to double its existing work force over the next 18 months, PartsSource shows no signs of slowing down. As long as Dalton consistently offers the supply, the demand, invariably, should follow.
