Owens & Minor Pursues Sustainable Solutions for Healthcare Through Electric Truck Pilot

Rhea-AI Summary

Owens & Minor has launched a pilot program in Southern California using an electric semi-truck to deliver medical products and PPE. The program, developed in partnership with Penske Logistics, began in the second quarter and will run for seven months. The Freightliner eCascadia will operate five days a week along a 152-mile route, stopping at five hospitals. Supported by a $16.8 million grant from South Coast AQMD, this initiative aims to enhance sustainability in healthcare logistics.

Positive

• Launch of electric vehicle pilot program demonstrates commitment to sustainability.
• Partnership with Penske Logistics integrates modern logistics and electric vehicle technology.
• Supported by a $16.8 million grant, enhancing operational capability and environmental impact.

Negative

• None.

Owens & Minor announced today a new pilot program that uses an electric semi-truck to deliver large-scale medical products and PPE to hospitals in Southern California. In collaboration with Penske Logistics and Penske Truck Leasing, the seven-month pilot program launched in the second quarter. Through the pilot, Owens & Minor has deployed heavy-duty battery electric Freightliner eCascadia from Daimler Trucks North America. The initiative builds upon Owens & Minor’s ongoing commitment to increasing sustainability across operations as outlined in its recently published 2020 Environmental Social Governance Report.

“Every day, Owens & Minor’s core Mission is Empowering Our Customers to Advance Healthcare. In doing so, we maintain a focus on protecting and supporting the communities where people live and work,” said Jeff Jochims, Executive Vice President, Chief Operating Officer and President, Medical Distribution at Owens & Minor. “We believe sustainability remains foundational to our Mission. By launching this electric vehicle pilot program for large scale delivery to hospitals, we are pushing the envelope of what can be done to support healthcare while helping to facilitate a safer and healthier environment.”

The electric Freightliner eCascadia runs five days per week along a 152-mile total route making stops at five hospital locations throughout Southern California.

“It was an easy decision to launch this pilot program with our longstanding partner Owens & Minor, because we know the critical role that medical distribution plays in our country’s healthcare supply chain,” said Marc Althen, Penske Logistics President. “The integration into the fleet operations for Owens & Minor was seamless. We’re excited to extend our track record of safety, training and positive driver experience with this new electric vehicle technology.”

In 2018, Penske Truck Leasing and Daimler Trucks North America announced a partnership to test commercial electric trucks from their Freightliner brand in real-world situations and drive future improvements to the technology. The venture is supported by the South Coast Air Quality Management District (South Coast AQMD), whose $16.8 million grant helped fund the program. South Coast AQMD focuses on improving air quality in large portions of Los Angeles, Orange County, Riverside and San Bernardino counties, including the Coachella Valley.

About Owens & Minor

Owens & Minor, Inc. (NYSE: OMI) is a global healthcare solutions company that incorporates product manufacturing, distribution support and innovative technology services to deliver significant and sustained value across the breadth of the industry – from acute care to patients in their home. Aligned to its Mission of Empowering Our Customers to Advance Healthcare™, more than 15,000 global teammates serve over 4,000 healthcare industry customers. A vertically-integrated, predominantly Americas-based footprint enables Owens & Minor to reliably supply its self-manufactured surgical and PPE products. This seamless value chain integrates with a portfolio of products representing 1,200 branded suppliers. Operating continuously since 1882 from its headquarters in Richmond, Virginia, Owens & Minor has grown into a FORTUNE 500 company with operations located across North America, Asia, Europe and Latin America. For more information about Owens & Minor, visit owens-minor.com, follow @Owens_Minor on Twitter and connect on LinkedIn at www.linkedin.com/company/owens-&-minor.

About Penske Logistics

Penske Logistics is a Penske Transportation Solutions company with operations in North America, South America, Europe and Asia. Penske Logistics provides supply chain management and logistics services to leading companies around the world. Penske Logistics delivers value through its design, planning and execution in transportation, warehousing, and freight management. Visit www.penskelogistics.com to learn more.

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FAQ

What is the significance of Owens & Minor's electric truck pilot program?

The electric truck pilot program signifies a commitment to sustainability and efficiency in healthcare logistics.

When did Owens & Minor launch its electric semi-truck pilot program?

The pilot program was launched in the second quarter and is expected to run for seven months.

Which electric truck model is being used in Owens & Minor's pilot program?

Owens & Minor is using the Freightliner eCascadia for its electric truck pilot program.

How does the partnership with Penske Logistics benefit Owens & Minor?

The partnership allows for seamless integration of electric vehicles into Owens & Minor's logistics operations.

What funding supports the electric truck program for Owens & Minor?

The program is supported by a $16.8 million grant from the South Coast Air Quality Management District.