Medline said it purchased another $500 million worth of medical supply inventory, bringing its total on-hand inventory over $4 billion.
Northfield, Illinois-based Medline — which manufactures and distributes healthcare products — said it purchased the products at the end of June and called the investment another step to fight global supply chain challenges.
“Our inventory management strategy has always been designed with one goal in mind — ensure that the right products are available at the right time to meet the demands of our customers and the patients in their care,” Medline Group Division President Jim Pigott said in a news release this week. “This latest investment reflects our ongoing pledge to provide reliable, superior service to healthcare systems across the continuum of care.”
Medline is the fifth-largest medical technology industry company in the world with more than $20 billion in annual revenue and 30,000 employees, according to Medical Design & Outsourcing’s latest Big 100 ranking.
The company said it has invested $2 billion in its U.S. distribution centers, manufacturing capabilities and IT upgrades since 2018. The company plans another $400 million investment this year.
In July, the company opened what it said is the largest medical-grade distribution center in the U.S. Medline’s most recent expansion is the addition of Micro-Kill disinfectant wipes at its Hartland, Wisconsin. facility, where production will start in the fourth quarter of 2022.
“Medline has implemented significant infrastructure expansions to ensure the resiliency of the healthcare supply chain and to help providers activate the clinical and supply chain resources needed to deliver their best care,” Medline EVP Jim Boyle said in the news release. “As the operators of the largest U.S. supply chain of any medical-surgical manufacturer and distributor, we continue to explore new solutions for the supply chain challenges our industry faces today while also preparing for tomorrow.”
Medline said it currently owns and operates more than 20 North American manufacturing facilities and manufactures more than 200 million healthcare products each year. The company also owns and operates more than 50 distribution centers totaling more than 28 million ft² and a 1,300-truck shipping fleet.