May 25, 2021 – Cardinal Health announced it is investing $50 million in medical inventory management throughout the United States.
The investment will add nearly 1.5 million square feet to the company’s regional replenishment centers, which store products that its nearby distribution centers can access quickly to restock their own inventory, then ship to customers.
The expansion began in May 2020 when Cardinal opened a one million-square-foot facility in Riverside, California, which stores inventory for all of the company’s western U.S. distribution centers and its large high-volume customers.
This facility also provides a unique cross-dock capability, meaning that when Cardinal Health brand products and materials sourced from its Latin America and Asia-Pacific operations arrive, they can be shipped directly to other replenishment centers without handling, stocking or picking the product.
The company announced its expansion investment over the next year would include:
- An additional one million-square-foot facility in Channahon, Illinois, for customer-owned inventory, allowing customers to store their own products and access them quickly for their health systems.
- The construction of a new replenishment center connected to its existing distribution center in Montgomery, New York, adding 310,000 square feet of storage space.
- The expansion of its Elwood, Illinois, facility, adding 90,000 square feet of inventory space.