Medline invests additional $500M in medical supply inventory to boost product availability
Thursday, September 08, 2022
Medline, a leading provider of medical supplies, has made a substantial investment of an additional $500 million in its medical supply inventory. This investment, completed in the second quarter of 2022, brings Medline's total on-hand inventory to over $4 billion. With this strategic move, Medline aims to ensure product availability and timely delivery to the healthcare providers it serves, despite the ongoing global supply chain challenges faced by the industry.
Jim Pigott, group president at Medline, emphasized the company's commitment to exceptional service, stating, "Our inventory management strategy has always been designed to meet the demands of our customers and the patients in their care. This latest investment reflects our ongoing pledge to provide reliable, superior service to healthcare systems across the continuum of care."
Medline's dedication to delivering outstanding service is enabled by its deliberate approach to global product and manufacturing diversification. With a presence in over 20 countries worldwide and expansive operations in North America, Medline owns and operates more than 20 manufacturing facilities, including surgical device reprocessing and production of infection prevention, cardiology diagnostic, incontinence products, cleansing wipes, lotions, and patient plastics. The company also manufactures over 200 million healthcare procedure kits annually in North America and owns and operates more than 50 distribution centers, totaling over 28 million sq. ft. of medical-grade warehouse space. Medline's MedTrans fleet, consisting of over 1,300 trucks nationwide, enables one-day shipping to 99% of the U.S.
To further strengthen the resilience of the healthcare supply chain, Medline continues to invest in its national capital expenditure campaign, the Healthcare Resilience Initiative. Since 2018, the company has invested $2 billion in its U.S. distribution centers, manufacturing capabilities, and IT upgrades. In 2022, an additional $400 million is planned for these initiatives, furthering Medline's commitment to providing superior customer service.
Jim Boyle, executive vice president for Medline, highlighted the company's efforts to address supply chain challenges and support healthcare providers, stating, "Medline has implemented significant infrastructure expansions to ensure the resiliency of the healthcare supply chain and to help providers deliver their best care. As operators of the largest U.S. supply chain of any medical-surgical manufacturer and distributor, we continue to seek new solutions for the supply chain challenges our industry faces today while preparing for tomorrow."
Throughout the pandemic, Medline has been proactive in addressing the surge in demand for medical supplies across the nation. The company has expanded its U.S. manufacturing capabilities and, in the fourth quarter of 2022, will begin production of Micro-Kill disinfectant wipes at its Hartland, Wisconsin facility. Medline remains committed to supporting healthcare providers and maintaining a robust supply chain to meet the evolving needs of the industry.