Proximity Is the Product: Inside Marcone’s Regional Distribution Strategy

Warehouse aisle with tall blue and orange pallet racks stocked with boxes and HVAC parts.

Think of every appliance repair as a relay race with three runners.

The first to the line is the manufacturer. When the gun goes off, they are busy creating a product that promises quality, reliability and performance. But they can’t carry the baton all the way to the finish line on their own.

That’s when they hand off to the service technician, who takes that promise into the field, diagnoses the problem and performs the repair.

Finally, the baton is passed to the third and final runner of the race: the homeowner. They’re the one waiting at the finish line, measuring success in the simplest possible terms: Is the equipment running again?

But even the best manufacturer or technician can’t win the race if the baton never arrives. If the right part is unavailable, delayed or difficult to access, the handoff breaks down and the race stalls.

That’s where Marcone steps in.

As the appliance distribution arm of mSupply, Marcone sees its role as one that ensures every handoff happens smoothly and without delay. Its fulfillment centers, branch network, inventory positioning and pickup solutions are not designed simply to move products from Point A to Point B. They are designed to keep the baton moving. The right part must move seamlessly from supplier to technician, and from technician to successful repair.

Many distributors measure success by how efficiently they run their portion of the race. Marcone measures success by whether the entire team crosses the finish line together. That means protecting the OEM’s brand promise, equipping the technician to complete the job on the first call and restoring the customer’s equipment as quickly as possible.

That’s why Marcone opened a new location, an 80,000-square-foot facility in Vancouver, Washington, earlier this year. The Vancouver fulfillment center is an exchange zone in the repair parts relay, strategically positioned to make every handoff faster, smoother and more reliable.

Network Architecture Over Shipping Reliance

The distinction Marcone has drawn is worth examining: The company achieves next-day delivery by positioning inventory inside the ground delivery radius of its customers before demand materializes. That is a capital and site selection decision, not just a carrier negotiation.

Vancouver’s new fulfillment center is 128% larger than the facility it replaced. The expansion was not driven by a single customer or contract. It was driven by market intelligence, along with current and future demand density in the Pacific Northwest and the distribution economics of serving that market from a single undersized facility. The new fulfillment center supports 10 additional loading docks, a meaningfully wider SKU count and a fulfillment throughput that has already increased regional output by roughly 2,000 packages per month while demand continues to grow.

Site selection followed the same logic. Vancouver sits in proximity to the Port of Tacoma, one of the Pacific Coast’s primary deep-water ports for Asia-origin freight. For a distributor carrying OEM parts with complex global sourcing, port adjacency shortens inbound lead times and reduces the cost and risk of routing overseas product through inland consolidation hubs. The facility serves outbound fulfillment and functions as a more efficient inbound staging point simultaneously.

Alonso Fierro, mSupply’s Senior Vice President of Operations and Supply Chain, framed the expansion in terms of measurable output: “As we continue to increase our capacity in the northwest, we have expanded our footprint of this facility and that has allowed us to have 2,000 more packages leaving each month and also to increase our SKU count by 5,000 for plumbing offerings.”

The Economics of a Dense, Regional Grid

Marcone has added four fulfillment centers since 2024: Denver; Denton, Texas and Calgary, Alberta; with Vancouver, Washington the most recent. Each addition tightens the grid, pulling more of the addressable customer base into next-day ground range and reducing the share of volume that requires premium shipping to meet service commitments.

The model reflects a research-based distribution principle: Beyond a certain network density, adding locations reduces total fulfillment cost even as it increases fixed infrastructure investment, because the reduction in outbound shipping spend and service failures outpaces the cost of a new facility.

Derek Parker, Marcone’s director of operations, measures network performance in volume terms: “We’re going to be up 31,000 packages this year over last year. So, with our ability to commit to our customers to get them the products they need when they need it, it shows.”

That volume growth is a signal worth reading carefully. It does not reflect a new customer acquisition push. It reflects customer confidence in fulfillment reliability – a behavioral shift that occurs when a distributor consistently meets its delivery commitments long enough for ordering behavior to change. Shops and service companies that once carried larger local inventory or used multiple distributors to hedge against stockouts begin consolidating their spend when one supplier demonstrates it will perform.\

Fulfillment Design as a Retention Mechanism

The downstream effect of reliable fulfillment is visible in how service businesses operate. First-call completion rates are the primary profitability metric for service companies. Those rates are directly constrained by parts availability. A distributor with deep regional inventory and reliable next-day delivery does not just save a service company a callback. It structurally improves that company’s unit economics.

Eddie Manuel, sales and operations manager at Whirlpool, connected Marcone’s regional inventory depth directly to that metric: “It’s going to be huge for first-call completes for our service companies and ultimately our consumers as the days to complete are much shorter.”

From a supply chain design perspective, this is what effective last-mile fulfillment looks like in a parts distribution context: The distributor’s network performance becomes embedded in the customer’s service delivery model. Switching costs rise not because of contracts, but because the operational dependency is real. A service business that has structured its scheduling and van stock assumptions around a distributor that reliably delivers next-day does not change suppliers casually.

What the Model Signals for the Industry

From a high viewpoint, Marcone’s network expansion reflects a broader shift in B2B distribution: The companies gaining share are not necessarily the ones with the widest catalog or the lowest price. They are the ones whose fulfillment networks are dense enough and reliable enough to become genuinely embedded in how their customers operate.

For distribution strategists, Vancouver is a useful case study in what deliberate network design produces at scale: not just faster delivery, but a structural advantage that compounds as customer behavior adjusts to match what the network can do in real time.

 

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