Siemens Healthineers is expanding its U.S. parts inventory and logistics network with two new "mega depots" in Dayton, New Jersey, and Manteca, California, in a move to increase parts inventory by nearly 30% and solidify the supply chain.

The company is leasing the warehouse space from GXO, the world’s largest pure-play contract logistics provider, in strategic locations to supplement its existing Memphis facility. The parts are for diagnostic imaging systems, such as MR and CT, while lab diagnostics and ultrasound components will be considered for inclusion later in the year, a spokesperson for Siemens Healthineers told HCB News.

The expansion aims to reduce risks associated with disruptions and fluctuating demand while offering customers later order cutoff times, same-day delivery within 300 miles, and additional next-flight-out shipping options.

“Healthcare providers across the U.S. count on us and our parts network for the equipment they need to give their patients exceptional care,” said David Pacitti, president and head of the Americas at Siemens Healthineers. “Any disruption to the availability of parts and supplies can be disastrous for providers and patients. By partnering with GXO, our parts network will further safeguard customers from supply-chain uncertainty.”

The company has already begun operations in New Jersey, with plans to launch California operations in early 2025.

In addition to its mega depots, Siemens Healthineers maintains a network of forward stocking locations near major customers to ensure faster access to critical parts. With the depots supporting the forward stocking locations, the company hopes to enhance geographical responsiveness to reduced system downtime.

“It’s an exciting time as we help Siemens Healthineers expand and speed up their parts network in the U.S. and strengthen this critical infrastructure,” said Jorge Guanter, president of Americas and Asia Pacific at GXO. “Healthcare providers depend on vital equipment being readily available for their patients. By working together, we will make more products accessible and ordering easier with faster delivery when medical supplies are needed across the U.S. without delay.”

GXO employs more than 150,000 team members across more than 1,000 facilities totaling approximately 200 million square feet. The company, headquartered in Greenwich, Connecticut, partners with blue-chip companies to solve complex logistics challenges.

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