Siemens Healthineers aims to bolster its U.S. supply chain and speed up deliveries to customers by establishing new “mega depots” for spare parts and other inventory on the East and West coasts.
Locations in the New York City and Oakland, California, metro areas are set to join the company’s more centrally located facility in Memphis, Tennessee. Siemens Healthineers said that once up and running, it will be able to offer same-day delivery within 300 miles in addition to more next-flight-out options.
In its announcement, the company cited “geopolitical uncertainties” as a potential threat to a stable medtech supply chain—amid ever-changing tariff proposals from the Trump administration and trade retaliations imposed by other countries—as well as the possibility of severe weather events interfering with rising global healthcare demands.
“Any disruption to the availability of parts and supplies can be disastrous for providers and patients,” David Pacitti, president and head of the Americas at Siemens Healthineers, said in a statement.
The imaging giant is leasing warehouse space and contracting inventory management through a multiyear deal with logistics provider GXO—which has begun its work in Dayton, New Jersey, and plans to launch operations in Manteca, California, early this year.
“By partnering with GXO, our parts network will further safeguard customers from supply-chain uncertainty,” Pacitti added. Siemens Healthineers will also maintain its current network of forward-stocking locations near its major U.S. customers.
The two companies estimate the new depots will increase parts inventory by 30% while giving customers in the western U.S. up to three additional hours to get in their orders for overnight delivery.
On the company’s quarterly earnings call earlier this month, CEO Bernd Montag said that “[c]onsidering recent developments, making any assessment for the future is challenging” amid concerns of a potential global trade war.
“Tariffs and any form of trade barriers have negative impacts on healthcare systems, as they limit the flow of knowledge, goods and services, ultimately to the detriment of patients,” Montag said Feb. 6—however, the company’s specific exposures to new U.S. levies against Canada, Mexico and China could be minimal.
“While we are not immune to a fully fledged trade war, my assessment would be that our risk level compared to many other sectors is clearly lower,” he said. “With respect to us, Siemens Healthineers, we have a globally well-spread value-add structure, two of our four segments are headquartered in the United States, and we have more employees there than anywhere else.”