Siemens Healthineers expands U.S. logistics to strengthen supply chain

USA – Siemens Healthineers is enhancing its U.S. logistics network by opening two major parts depots in Dayton, New Jersey, and Manteca, California.

These “mega depots” will boost available parts inventory by 30%, providing greater flexibility and faster delivery to healthcare providers.

This expansion aims to reduce supply chain disruptions and ensure that critical medical equipment remains available without delays.

Healthcare supply chains have faced increasing pressure in recent years due to rising global demand, severe weather, and geopolitical uncertainties.

To address these challenges, Siemens Healthineers is working with GXO Logistics, a global leader in contract logistics and inventory management.

By leasing new warehouse space on both the East and West Coasts, Siemens Healthineers aims to minimize risks associated with supply shortages and enhance delivery speed.

The company already operates a depot in Memphis, Tennessee, which will now be supported by the two new locations.

David Pacitti, President and Head of the Americas at Siemens Healthineers, emphasized the importance of a strong logistics network in maintaining healthcare services:

“Healthcare providers rely on us for essential equipment to provide exceptional patient care. Any disruption in the supply chain can have serious consequences. By expanding our logistics network with GXO, we can safeguard our customers from these risks.”

Key benefits of the expansion

The new logistics depots will provide several benefits, including:

• Same-day delivery for customers within 300 miles
• Extended cutoff times for orders
• More next-flight-out shipping options for urgent needs
• Improved service to healthcare providers across the U.S.
• Lower environmental impact through optimized delivery routes

Siemens Healthineers also operates a network of forward-stocking locations near major customers. The new depots will further enhance efficiency, ensuring that medical facilities receive essential parts quickly and reliably.

Operational rollout and future plans

The New Jersey facility is already operational, supporting Siemens’ East Coast customers. The California depot will open in early 2025, further expanding coverage on the West Coast.

Jorge Guanter, President of Americas and Asia Pacific at GXO, expressed excitement about the partnership:

“This expansion strengthens critical infrastructure, ensuring healthcare providers have access to vital equipment. By improving logistics, we make it easier and faster for medical facilities to get the supplies they need, without delay.”

Siemens Healthineers referenced spare parts logistics in its recent earnings call, acknowledging that inventory valuation adjustments had impacted profit margins in its imaging business.

However, the company sees this investment as a long-term solution to improve its logistics network and support future growth.