Siemens Healthineers, a leading medical technology company, and DHL Supply Chain, the Americas leader in contract logistics and part of Deutsche Post DHL Group, joined forces to invest in a state-of-the-art World Distribution Center in Memphis, Tennessee.
DHL Supply Chain and Siemens Healthineers entered into a 10-year service agreement where Siemens Healthineers will occupy approximately 260,000 square feet of a 422,000 square foot facility that DHL has purchased. This brand new site was the first speculative distribution facility built in Memphis since 2007 and will employ approximately 105 associates.
According to DHL Supply Chain, which will operate the distribution center said, “an important focus area in the relationship will be the use of digital and robotics technologies that are designed to deliver continuous quality and cost improvements within the supply chain of Siemens Healthineers, enabling high levels of delivery performance and customer satisfaction."
The Distribution Center will incorporate DHL’s proprietary warehousing and inventory management system and proven innovations, such as automated storage and retrieval systems and augmented reality-assisted picking, to maximize efficiency and productivity. Digital technologies, such as DHL’s MySupplyChain application and GPS tracking for final mile delivery, will provide engineers with additional transparency, visibility and control over their orders and returns.
“The Americas is an important growth market for Siemens Healthineers, and the quality, flexibility and speed of the service logistics platform we have established in the region helps us better serve our customers,” said David Pacitti, President and Head of the Americas, Siemens Healthineers. “Working with DHL Supply Chain, we have an exciting opportunity to further strengthen our services and support our company’s ambition to deliver a digital advantage for our customers and their patients in this region.”
"DHL Supply Chain is bringing more than 20 years of experience in healthcare logistics, a company-wide culture of continuous improvement, and a broad suite of end-to-end, digitally-enabled supply chain solutions to this relationship with Siemens Healthineers,” said Scott Allison, Chief Customer Officer, Global Service Logistics, DHL Supply Chain. “Thanks to Siemens Healthineers’ leadership in medical technology and their commitment to transforming care delivery through increased digitalization, we believe that we have an opportunity to jointly leverage our capabilities and to generate substantial value in their supply chain. We will also be applying our expertise in contract logistics and the capabilities of our broader service logistics network to target cost savings in materials procurement, labor sourcing and carrier management.”