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Owens & Minor Announces Major Innovations to Products & Healthcare Services Network

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Owens & Minor (NYSE: OMI) has announced significant advancements in its Products & Healthcare Services (P&HS) segment's medical distribution capabilities. The company is implementing new technology, automation, and analytics capabilities to enhance supply chain visibility and efficiency.

Two new state-of-the-art distribution centers will showcase these innovations:

  • A facility in West Virginia (now open) featuring advanced automation and robotics for streamlined inventory management and order fulfillment
  • A center in South Dakota (opening spring 2025) incorporating augmented reality (AR) technology for order picking

These developments are part of the company's two-year initiative to improve customer experience and operational efficiency in the P&HS segment, which serves thousands of healthcare customers.

Owens & Minor (NYSE: OMI) ha annunciato importanti progressi nelle capacità di distribuzione medica del suo segmento Prodotti e Servizi Sanitari (P&HS). L'azienda sta implementando nuove tecnologie, automazione e capacità analitiche per migliorare la visibilità e l'efficienza della catena di approvvigionamento.

Due nuovi centri di distribuzione all'avanguardia metteranno in mostra queste innovazioni:

  • Una struttura in Virginia Occidentale (ora aperta) con automazione avanzata e robotica per una gestione dell'inventario e un soddisfacimento degli ordini semplificati
  • Un centro in South Dakota (in apertura nella primavera del 2025) che incorpora la tecnologia della realtà aumentata (AR) per la raccolta degli ordini

Questi sviluppi fanno parte dell'iniziativa biennale dell'azienda per migliorare l'esperienza del cliente e l'efficienza operativa nel segmento P&HS, che serve migliaia di clienti nel settore sanitario.

Owens & Minor (NYSE: OMI) ha anunciado avances significativos en las capacidades de distribución médica de su segmento de Productos y Servicios de Salud (P&HS). La empresa está implementando nuevas tecnologías, automatización y capacidades analíticas para mejorar la visibilidad y eficiencia de la cadena de suministro.

Dos nuevos centros de distribución de última generación mostrarán estas innovaciones:

  • Una instalación en Virginia Occidental (ahora abierta) que cuenta con automatización avanzada y robótica para la gestión de inventarios y el cumplimiento de pedidos simplificado
  • Un centro en South Dakota (que abrirá en la primavera de 2025) que incorpora tecnología de realidad aumentada (AR) para la recolección de pedidos

Estos desarrollos son parte de la iniciativa de dos años de la empresa para mejorar la experiencia del cliente y la eficiencia operativa en el segmento P&HS, que atiende a miles de clientes en el sector de la salud.

Owens & Minor (NYSE: OMI)는 제품 및 의료 서비스(P&HS) 부문의 의료 유통 능력에서 중요한 발전을 발표했습니다. 이 회사는 공급망 가시성과 효율성을 향상시키기 위해 새로운 기술, 자동화 및 분석 능력을 구현하고 있습니다.

이 혁신을 선보일 두 개의 최첨단 유통 센터가 있습니다:

  • 웨스트 버지니아에 위치한 시설(현재 개방됨)으로, 재고 관리 및 주문 이행을 위한 고급 자동화 및 로봇 기술을 갖추고 있습니다.
  • 사우스 다코타에 위치한 센터(2025년 봄 개장 예정)로, 주문 피킹을 위한 증강 현실(AR) 기술을 통합하고 있습니다.

이러한 개발은 P&HS 부문에서 고객 경험과 운영 효율성을 개선하기 위한 회사의 2년 계획의 일환으로, 수천 개의 의료 고객에게 서비스를 제공합니다.

Owens & Minor (NYSE: OMI) a annoncé des avancées significatives dans les capacités de distribution médicale de son segment Produits et Services de Santé (P&HS). L'entreprise met en œuvre de nouvelles technologies, de l'automatisation et des capacités d'analyse pour améliorer la visibilité et l'efficacité de la chaîne d'approvisionnement.

Deux nouveaux centres de distribution à la pointe de la technologie mettront en avant ces innovations :

  • Une installation en Virginie-Occidentale (déjà ouverte) dotée d'une automatisation avancée et de la robotique pour une gestion des stocks et un traitement des commandes simplifiés
  • Un centre dans South Dakota (ouverture au printemps 2025) intégrant la technologie de réalité augmentée (AR) pour le prélèvement des commandes

Ces développements font partie de l'initiative de deux ans de l'entreprise visant à améliorer l'expérience client et l'efficacité opérationnelle dans le segment P&HS, qui sert des milliers de clients dans le secteur de la santé.

Owens & Minor (NYSE: OMI) hat bedeutende Fortschritte in den medizinischen Vertriebsfähigkeiten seines Segments Produkte & Gesundheitsdienste (P&HS) angekündigt. Das Unternehmen implementiert neue Technologien, Automatisierung und Analysefähigkeiten, um die Sichtbarkeit und Effizienz der Lieferkette zu verbessern.

Zwei neue hochmoderne Vertriebszentren werden diese Innovationen präsentieren:

  • Eine Einrichtung in West Virginia (jetzt geöffnet), die über fortschrittliche Automatisierung und Robotik für ein optimiertes Bestandsmanagement und die Auftragsabwicklung verfügt
  • Ein Zentrum in South Dakota (Eröffnung im Frühjahr 2025), das Augmented-Reality (AR)-Technologie für die Auftragsabwicklung integriert

Diese Entwicklungen sind Teil der zweijährigen Initiative des Unternehmens zur Verbesserung der Kundenerfahrung und der betrieblichen Effizienz im P&HS-Segment, das Tausende von Gesundheitskunden bedient.

Positive
  • Investment in new automation and technology infrastructure
  • Expansion of distribution network with two new state-of-the-art facilities
  • Implementation of advanced robotics and AR technology to improve operational efficiency
Negative
  • Significant capital expenditure required for new facilities and technology implementation
  • Extended timeline for full implementation, with South Dakota facility not operational until 2025

Insights

Owens & Minor's investment in advanced automation and technology for its Products & Healthcare Services division represents a strategic positioning move in the medical distribution sector. The company is opening two new state-of-the-art distribution centers - one already operational in West Virginia with robotics capabilities, and another in South Dakota (opening spring 2025) featuring augmented reality for order picking.

This infrastructure modernization aims to address critical supply chain challenges that have plagued healthcare distribution networks. Enhanced automation typically yields several operational benefits: reduced labor costs, decreased error rates, improved inventory accuracy, and faster order fulfillment cycles. The implementation of augmented reality for picking processes generally reduces error rates by 15-30% in comparable operations.

While the announcement lacks specific financial metrics regarding investment size or expected returns, these facilities will likely create long-term value through improved operational efficiencies. The timing aligns with industry-wide recognition of supply chain vulnerabilities exposed during recent years. By enhancing visibility and resilience, OMI potentially strengthens its competitive position against major medical distributors who are similarly investing in technological capabilities.

The phased implementation approach, starting with these two facilities before wider rollout, suggests a measured strategy that mitigates implementation risks while allowing for refinements before system-wide deployment. This could help avoid the operational disruptions that often accompany large-scale technology implementations in distribution networks.

This announcement reflects OMI's response to evolving customer expectations in healthcare distribution. The P&HS segment forms a critical component of their business, serving thousands of healthcare providers who increasingly demand more resilient and transparent supply chains following recent industry disruptions.

The strategic value lies in the potential customer retention benefits. Healthcare providers frequently cite supply chain reliability as a primary factor in vendor selection, ranking even above pricing in many surveys. By improving visibility and resilience, OMI addresses these priorities directly. The integration of advanced robotics and augmented reality represents more than incremental improvement - it signals a fundamental enhancement to their distribution capabilities.

However, the financial implications remain mixed. While automation typically reduces per-unit handling costs by 20-40% at scale, the capital expenditure required for state-of-the-art distribution centers creates near-term pressure on free cash flow. The company's $591 million market capitalization makes these investments proportionally significant.

The multi-year implementation timeline (beginning now through spring 2025) suggests a measured approach to capital deployment but also delays full realization of benefits. Without disclosed metrics on expected efficiency gains or implementation costs, it's difficult to quantify the ROI timeline. This appears to be a necessary competitive investment rather than an immediate value creation catalyst - addressing evolving customer expectations while potentially improving margins over the long term through operational efficiencies.

Transformative investments in technology, automation and analytics capabilities will help improve supply chain visibility and resiliency for Products & Healthcare Services customers and lay the foundation for future innovations

RICHMOND, Va.--(BUSINESS WIRE)-- Owens & Minor, Inc. (NYSE: OMI) today announced important milestones in advancing the medical distribution capabilities of its Products & Healthcare Services (P&HS) business segment, which provides essential products and services to thousands of healthcare customers. These milestones are the result of recent company investments in new technology, automation and analytics capabilities geared specifically toward driving greater efficiencies for the P&HS segment and improving the customer experience. Initial roll out will focus on two new Owens & Minor distribution centers in West Virginia and South Dakota.

“Over the past two years, our P&HS teammates have worked creatively and diligently to identify areas where technology investments, operational upgrades and new approaches to how we do business could have a meaningful impact for our customers,” said Andy Long, EVP and CEO, Products & Healthcare Services, Owens & Minor. “We’re excited for these advancements to go live in West Virginia and South Dakota and look forward to the benefits they will provide for other Owens & Minor customers in years to come.”

These new capabilities will be operational at two new Owens & Minor sites starting in 2025:

  • A new state of the art distribution center with advanced automation and robotics technology to help streamline and expedite inventory management and order fulfilment in West Virginia (now open)
  • A second state of the art distribution center in South Dakota that will integrate the latest augmented reality (AR) system for supporting the order picking process (opening spring 2025)

About Owens & Minor

Owens & Minor, Inc. (NYSE: OMI) is a Fortune 500 global healthcare solutions company providing essential products and services that support care from the hospital to the home.

For over 100 years, Owens & Minor and its affiliated brands, Apria®, Byram®, and HALYARD*, have helped to make each day better for the patients, providers, and communities we serve. Powered by more than 20,000 teammates worldwide, Owens & Minor delivers comfort and confidence behind the scenes so healthcare stays at the forefront. Owens & Minor exists because every day, everywhere, Life Takes Care™.

For more information about Owens & Minor and our affiliated brands, visit owens-minor.com or follow us on LinkedIn and Instagram.

OMI-IR

OMI-CORP

Media contact

Stacy Law

mediarelations@owens-minor.com

Source: Owens & Minor, Inc.

FAQ

When will Owens & Minor's (OMI) new South Dakota distribution center open?

The new South Dakota distribution center is scheduled to open in spring 2025.

What technologies are being implemented in OMI's new West Virginia distribution center?

The West Virginia facility features advanced automation and robotics technology for streamlined inventory management and order fulfillment.

How will the new distribution centers benefit OMI's healthcare customers?

The centers will improve supply chain visibility, resiliency, and operational efficiency through advanced technology, automation, and analytics capabilities.

What innovative technology will OMI's South Dakota distribution center utilize?

The South Dakota facility will integrate augmented reality (AR) systems to support the order picking process.
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