Supplying the demand Featured

8:00pm EDT October 4, 2007

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.

HOW TO REACH: PartsSource, LLC, (330) 562-9900 or www.mypartssource.com