Medline Expands Distribution with New Texas Center

Why It Matters

The new center bolsters Medline’s logistics capacity, sharpening its competitive edge in the U.S. healthcare supply chain and enabling faster, more reliable product delivery.

Key Takeaways

• 1.2M‑sq‑ft center in Midlothian, Texas, opening 2027.
• Second Medline distribution hub in Dallas‑Fort Worth region.
• Facility will use AutoStore automated storage system.
• Supports next‑day delivery to 95% of US customers.
• Increases Medline’s total US warehouse space beyond 26M sq ft.

Pulse Analysis

Medline’s decision to build a 1.2‑million‑square‑foot distribution hub in Midlothian reflects a broader trend of healthcare suppliers scaling logistics infrastructure to meet rising demand. The Texas site, scheduled for a 2027 launch, will be the company’s second facility in the Dallas‑Fort Worth corridor, a region experiencing rapid hospital and outpatient growth. By expanding its footprint, Medline not only diversifies geographic risk but also positions itself to capture a larger share of the increasingly fragmented U.S. medical‑device market.

Automation lies at the heart of the new center’s design. Leveraging the AutoStore system, the facility will automate storage, retrieval and order picking, dramatically cutting labor costs and order‑cycle times. Combined with Medline’s owned truck fleet and an inventory strategy that maintains roughly 80 days of on‑hand stock, the technology enables next‑day delivery to 95% of customers nationwide. This level of service reliability is a critical differentiator for providers who depend on timely supplies for surgeries, chronic‑care settings and emergency response.

Strategically, the expansion underscores Medline’s post‑IPO growth trajectory. After its December 2025 public offering, the company has signaled intent to reinvest capital into network efficiency rather than solely pursuing acquisitions. The Midlothian hub strengthens Medline’s bargaining power with manufacturers and enhances its ability to meet the evolving needs of hospitals, ambulatory centers and long‑term care facilities. As competitors scramble to modernize their supply chains, Medline’s investment in scale and technology positions it to set industry standards for speed, reliability, and cost‑effectiveness.