Editor’s Note: Distributors today, like PartsSource, face significant challenges in managing orders and executing on last-mile delivery. Excessive costs — driven by rising fuel prices, vehicle maintenance, labor, and operational overhead — are compounded by factors such as order cancellations and abandoned parcels.

These issues force sellers to absorb losses that can hurt profitability and result in missed sales opportunities. Moreover, unpredictable shifts in customer behavior, including the growing demand for flexible delivery options like changing drop-off locations, add to the complexity. Outdated technology and poor route planning further exacerbate these problems, leading to inefficiencies, higher costs, and increased risks of delays, damage, or failed deliveries. Fortunately, real-time tracking and improved customer communication are emerging as effective solutions to streamline operations and enhance delivery efficiency.

Kaitlin LaPlante, vice president of operations and transformation, PartsSource

PartsSource is a leading B2B marketplace and software provider specializing in the management of healthcare 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 this two-part 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.

Digital Commerce 360: How critical are order management, logistics, and last-mile delivery to PartsSource’s operations, and why?

PartsSource: Order management, logistics, and last-mile delivery are critical to PartsSource’s operations, playing a significant role in ensuring mission-critical clinical assets remain functional for patient care. These core business processes are the foundation of the PartsSource business model and essential to meet the evolving needs of healthcare providers across the nation.

Kier Selinsky, senior director of product management, PartsSource

Once a customer places an order, how we manage that process, from order fulfillment to navigating the logistics, can significantly impact customer satisfaction. Timely, accurate, and efficient order processing is critical to the operations of healthcare providers who rely on timely receipt of parts to run life-saving equipment. Delays or errors in processing orders can result in operational disruptions, potentially affecting patient care. In fact, this system of order management and logistics is where we have the most leverage in shaping customer expectations.

A misstep here can lead to breakdowns in patient care, so maintaining the highest standards is vital. Particularly for counter-to-counter orders, such as high-end imaging equipment, last-mile delivery becomes especially crucial. The delivery is the final touchpoint, and if this step is not executed flawlessly, it can jeopardize the whole operation. Last-mile delivery in these cases is often not just about speed but also about the precision and care involved in getting critical products into the right firsthand time.

DC 360: What new and evolving customer demands and priorities are you seeing in relation to these areas?

PartsSource: As healthcare providers continue to face budget constraints and increasing operational complexities, their demands and priorities around order management, logistics, and last-mile delivery are evolving.

Janet Michel, vice president and general manager of strategic partnerships and operations, PartsSource

These shifts are driving a need for more support and greater collaboration from partners like PartsSource to help them meet the challenges they face. PartsSource works to anticipate our customers’ needs, sometimes even before they realize them. This means offering not just reactive solutions, but initiative-taking ones. Customers understand that PartsSource works to flag potential issues, report exceptions, and alert them to nonconformities before they become a problem.

By taking this initiative-taking approach, we help our customers avoid disruptions and ensure that critical equipment parts are available when they need them. The demand for this level of foresight is growing, as customers want to prevent issues before they impact patient care or their operational efficiency.

As healthcare systems expand and become more complex, so do their logistical needs. With multiple locations, departments, and services to manage, healthcare providers need a logistics partner who can manage this increased complexity.

PartsSource proactively works to track and manage parts and services across multiple sites, with an emphasis on centralized visibility and control. This complexity demands that we continue to streamline operations and offer solutions that simplify the management of these resources.
Healthcare providers are increasingly operating with leaner staffing models, which means they need to prioritize tasks more effectively. One of the most key factors for them is knowing exactly when a part or equipment will arrive. This allows them to plan clinical readiness and prepare for maintenance, replacement, or support activities accordingly. PartsSource customers rely on us to provide precise delivery timelines, so they can prioritize critical actions within their limited resources.

As budget constraints tighten, our customers require greater transparency regarding the shipping process. They want to know when their orders will ship, when they can expect delivery, and have the assurance that shipments will arrive on time. This transparency is essential for maintaining trust and satisfaction, particularly in healthcare settings where timing can be a matter of life or death. Clear communication about delivery schedules helps customers plan better and ensure continuity in their operations.

While timely delivery remains a top priority, there is an increasing demand for lower-cost shipping options. Healthcare providers are under pressure to reduce costs wherever possible, and shipping is no exception. Balancing the need for timely, reliable delivery with more affordable shipping options is becoming a critical challenge. PartsSource continues to innovate to meet these dual demands, assuring that shipments arrive on time without compromising service reliability or escalating costs.

Healthcare providers are seeking increased support, transparency, and cost-effective solutions to help them navigate their increasingly complex operations. By focusing on anticipatory service, transparent communication, and cost-effective logistics, we can continue to meet these growing demands and solidify our role as a trusted partner in the healthcare industry.

DC360: How is PartsSource adapting to these changes? I’m looking for specific details and examples.

PartsSource: PartsSource is adapting to evolving customer demands by focusing on continuous improvement and embracing innovative technologies to enhance logistics, on-time delivery, and cost efficiency. Here are the specific strategies and examples that demonstrate how we are meeting these challenges:

To improve logistics efficiency and meet the increasing demand for on-time delivery, PartsSource is forming stronger partnerships with carriers. This collaboration ensures that we can offer more reliable and cost-effective shipping options for our customers. By collaborating closely with our carriers, we can optimize delivery routes, improve shipping schedules, and better respond to the needs of our customers, all while maintaining cost efficiency.

We have also integrated advanced monitoring solutions into our logistics system to provide real-time visibility into the shipping process. This enables us to proactively track and manage orders, ensuring that our customers are informed every step of the way. These monitoring systems help us address potential delays before they impact delivery, improving transparency and ensuring that we meet customer expectations for timely delivery.

To provide our customers with the most up-to-date information, PartsSource has integrated real-time data from our suppliers. This allows us to offer more accurate delivery timelines and better anticipate inventory needs. By having real-time insights into the status of parts, we can streamline order fulfillment and ensure that critical components are delivered on time, reducing the likelihood of disruptions in healthcare operations.

We are also enhancing our customer service experience through improved planning and tracking capabilities. Our customers are increasingly seeking greater transparency regarding when their orders arrive, and we have responded by implementing tools that allow for better monitoring and communication. This helps healthcare providers plan their clinical readiness effectively and manage their resources in real time, ensuring they can prioritize maintenance, replacement, and support tasks accordingly.

PartsSource continues to invest in innovative technologies to enhance our order management system. Our new reporting capabilities allow for more accurate forecasting, better inventory management, and optimized order fulfillment. This technology helps us ensure that we can meet the growing demand for timely deliveries while also reducing costs, as it minimizes overstocking and understocking issues.

PartsSource is adapting to the changing demands of the healthcare industry by continuously improving its logistics, delivery processes, and customer service. Through strategic partnerships with carriers, advanced monitoring systems, real-time supplier integration, and significant technological investments, we can meet the need for timely deliveries and cost-effective solutions. At the same time, initiatives like the Imaging Rewards program and Precision Procurement ensure that we are not only fulfilling current customer needs but also preparing for the challenges of the future.

DC 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 important levels of reliability and on-time shipping.

In recent months, we have also successfully increased our on-time shipping accuracy by more than 10%. 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.

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