Medline opens massive automated distribution center, largest of its kind in the US
The new automated 1.4 million-square-foot, $125 million, facility was designed as ‘shock absorber’ to its supply chain.
A new 1.4 million-square-foot Medline distribution center in Grayslake was designed in part to ease the strain of the supply chain of medical goods to its health care industry customers, which include many of the nation’s major health care systems.
Over the next four years, Medline plans to add more than 10 million square feet in warehouse space. It also plans to complete construction on seven U.S. distribution centers, designed to meet LEED standards, including Grayslake.
Doug Golwas, Medline’s executive vice president for acute care sales to hospitals, said major customers lease their own 10,000 square foot sections to assure a supply of items like personal protection equipment (PPE), which was scarce in the early days of the coronavirus pandemic.
“We make sure there is an inventory of PPE in the event of supply shortages,” he said. “We don’t want to have a short supply of lab items. We stay on top of what’s happening globally with the supply chain.”
Medline cut the ribbon for its new distribution center Wednesday in Grayslake, which it believes is the largest medical-grade facility of its kind in the United States to serve hospitals and other health care operations throughout the Midwest.
Though the distribution center was fully operational late last year, Brian Bevers, the company’s senior vice president of operations, said the official ribbon-cutting was delayed because of pandemic-related complications, including a desire to hold it outside.
While Golwas said there is little the company can do to shield its customers from increasing gasoline prices other than using their own trucks efficiently, there are ways to help the health care industry deal with inflation, such as suggesting a different brand.
“We can offer them a Medline-branded item,” he said.
Use of cutting edge technology in the distribution center adds to the efficiency of operations which ultimately benefit the customers. Bevers said robots play a role moving goods around the warehouse, as well as directing employees how to find the right items and quantity to ship.
Workers filling orders in the distribution center wear headsets, where a computer-generated voice tells where to go to get the needed item. The individual communicates with an electronic voice, known as the Jennifer System, until the order is complete.
“It tells the team member to go to the appropriate aisle and pick seven of the item,” Bevers said. “If the team member only finds five there, the voice tells the team member to go to aisle five to locate the other two. It’s pretty easy.”
As a specific colored bin comes into a work station, the employee puts different parts of the order into a different colored bin to complete the sequence. The worker is directed what to do through a computer screen.
While other major companies with large distribution centers also use sophisticated equipment, Bevers said when serving the health care industry and specifically large hospital systems, the care is more crucial for Medline.
“Our business is different” he said “We are shipping lifesaving medical equipment that could potentially save a life.”
Built for expansion in the future, Bevers said the distribution center employs 520 hourly individuals, 30 who draws salaries and 85 truck drivers operating Medline’s fleet of trucks. Scheduling is done to make sure there is little, if any, wait time. Together they support $1 billion in sales.
Of the 1.4 million square feet of space, Bevers said 800,000 square feet are currently in use, and there is another 600,000 square feet available for expansion. Should that happen, there could be as many as 1,000 people working there.
Starting pay for workers in the distribution center is $22 per hour. Bevers said many of the jobs are “second shift,” where people work from the afternoon into the evening.
A family led, privately held enterprise with $20.2 billion in sales in 2021, Medline is a manufacturer, distributor and solutions partner devoted to the overall operating performance of health care, according to information provided by the company. It is currently in the fourth generation of family management.
A number of local officials were at the ribbon-cutting, including Lake County Treasurer Holly Kim, Grayslake Mayor Rhett Taylor and Kevin Considine, the president and CEO of Lake Partners.
“This is a really big deal for Grayslake and all of Lake County,” Considine said. “We expect to see it keep growing.”
Last year, Medline announced that it completed a three-year, $1.5 billion capital spending campaign. At the time, the company said that, over the next four years, it plans to add more than 10 million square feet in warehouse space. It also plans to complete construction on seven U.S. distribution centers, designed to meet LEED standards, including Grayslake, along with these locations:
Hammond, La.
Mebane, N.C.
Montgomery, N.Y.
Richmond Hill, Ga.
Southaven, Miss.
St. Peters, Mo.
Medline has operated in Lake County, Illinois, for 50 years and currently manages six facilities that house office, manufacturing, and distribution facilities employing 3,000 team members.
Globally, the company operates more than 30 manufacturing sites and more than 75 distribution centers. Medline employs more than 30,000 team members in more than 125 countries. With $20.2 billion in global sales in 2021 Northfield, Illinois-based Medline is one of the largest manufacturers, distributors, and solutions partner to healthcare organizations, including 70% of the U.S. News & World Report Honor Roll hospitals.
