Cardinal Health expands medical product distribution footprint in Northeast Ohio

Rhea-AI Summary

Cardinal Health (NYSE: CAH) has announced plans to open a new 249,000 square foot distribution center in Walton Hills, Ohio, expanding its medical product distribution footprint in Northeast Ohio. The facility, set to be fully operational by spring 2025, will be over 30% larger than the Solon, Ohio location it replaces. It will feature advanced technology and automation to improve service quality, enhance employee work experiences, and increase storage capacity.

This expansion is part of Cardinal Health's broader strategy to improve infrastructure, warehouse operations, and supply chain resiliency. The company has recently opened new distribution centers in Central Ohio and Montgomery, N.Y., with another facility opening soon in the Boston area. These investments demonstrate Cardinal Health's commitment to meeting growing customer needs and strengthening its U.S. Medical Products and Distribution business.

Positive

• New 249,000 sq ft distribution center is 30% larger than the facility it replaces
• Integration of advanced technology and automation to improve operational efficiency
• Expanded storage capacity to meet growing customer needs
• Part of a larger strategy to strengthen supply chain resiliency and infrastructure

Negative

• None.

New facility opening in Walton Hills demonstrates ongoing commitment to increase U.S. warehouse capacity and modernize operations  

DUBLIN, Ohio, Aug. 21, 2024 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today its plans to open a new distribution center in Walton Hills, Ohio, supporting its U.S. Medical Products and Distribution business. The facility will integrate new technology solutions, deliver operational efficiencies, and provide expanded capacity in the Cleveland, Ohio area. With construction underway, the distribution center is anticipated to be fully operational in the spring of 2025 and, at nearly 249,000 square feet, is more than 30% larger than the Cardinal Health location in nearby Solon, Ohio, it will replace. The larger building and its operations will accommodate a full transition of employees.

"We're proud to expand our capabilities in Northeast Ohio, which is a major healthcare hub and a critical market that our medical products and distribution business has serviced for more than 25 years," said Sherrick Orie, vice president, Central Region Operations. "This distribution center will feature technology and automation to improve quality of service for our customers and day-to-day work experiences for our employees, as well as the additional storage capacity essential to meeting our customers' growing needs."

Next generation technology integrated into the building will improve workflows and help move medical products through the building more efficiently, enhancing the order-to-delivery experience for customers. Working alongside employees, automation will drive productivity and performance, while reducing risks of ergonomic injuries.

"Cardinal Health is investing in a state-of-the art building in a prime location," said Walton Hills Mayor Don Kolograf. "We are excited to welcome the company to the new Forward Innovation Center (East) industrial park, Northeast Ohio's revitalized development space for modern manufacturing and distribution operations. We look forward to working with their team and making Walton Hills a vital area for Cardinal Health's growing operations in Ohio."

Cardinal Health's investment in the new facility is part of a larger strategy to best serve healthcare customers and the patients they care for. Expanding its U.S. Medical Products and Distribution footprint and implementing new technology solutions illustrates the company's continued focus on infrastructure, warehouse operations and supply chain resiliency. In 2023, Cardinal Health opened two new distribution centers in Central Ohio to support is U.S. Medical Products and Distribution and at-Home Solutions businesses, and a new medical products replenishment center in Montgomery, N.Y., which strengthens on-hand inventory levels and the ability to rapidly restock its distribution network. In late 2024, Cardinal Health will celebrate the recent opening of a new distribution center in the Boston, Mass., area, providing expanded warehouse capacity and specialized handling capabilities for products requiring refrigeration.

About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for healthcare facilities. With more than 50 years in business, operations in more than 30 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts
Media: Brittany Julian, brittany.julian@cardinalhealth.com
Investors: Matt Sims, matt.sims@cardinalhealth.com 

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SOURCE Cardinal Health

FAQ

When will Cardinal Health's new Walton Hills distribution center be fully operational?

Cardinal Health's new distribution center in Walton Hills, Ohio is expected to be fully operational by spring 2025.

How large is Cardinal Health's (CAH) new distribution center in Walton Hills?

The new Cardinal Health distribution center in Walton Hills, Ohio will be nearly 249,000 square feet, which is over 30% larger than the Solon, Ohio location it replaces.

What improvements will the new Cardinal Health (CAH) distribution center offer?

The new distribution center will feature advanced technology and automation to improve service quality, enhance employee work experiences, increase storage capacity, and drive productivity while reducing ergonomic injury risks.

How does the Walton Hills facility fit into Cardinal Health's (CAH) broader strategy?

The new facility is part of Cardinal Health's larger strategy to expand its U.S. Medical Products and Distribution footprint, implement new technology solutions, and improve infrastructure, warehouse operations, and supply chain resiliency.