Cardinal Health to expand pharmaceutical distribution network with new Indianapolis facility
Cardinal Health (NYSE: CAH) has announced plans to build a new 230,000-square-foot flagship forward distribution center in Indianapolis, Indiana. The state-of-the-art facility will feature an industry-first robotic storage and retrieval system, developed in partnership with Swisslog.
The facility will enhance Cardinal Health's pharmaceutical distribution network, which currently handles over 70,000 pharmaceutical and specialty deliveries daily. Key features include real-time inventory visibility, intelligent order fulfillment, and advanced robotics. The center is expected to be fully operational by fall 2027 and will create more than 100 new jobs in Indiana.
- Creation of over 100 new jobs in Indiana
- Implementation of industry-first robotic storage and retrieval system
- Expansion of distribution capacity with 230,000-square-foot facility
- Enhanced operational efficiency through advanced automation technology
- Long implementation timeline with operations starting in fall 2027
- Significant capital investment required for facility and automation technology
Insights
Cardinal Health's new automated distribution center signifies strategic modernization that will enhance efficiency, service quality, and competitive positioning.
Cardinal Health's planned 230,000-square-foot flagship forward distribution center in Indianapolis represents a significant advancement in pharmaceutical distribution infrastructure. The facility will feature an industry-first robotic storage and retrieval system developed with Swisslog, positioning Cardinal at the technological forefront of pharmaceutical logistics.
The integration of real-time inventory visibility systems and intelligent order fulfillment automation addresses several critical industry challenges simultaneously. First, it mitigates the persistent labor constraints facing distribution operations nationwide. Second, it enhances operational precision in an industry where error tolerance approaches zero. Third, it creates scalability to accommodate volume fluctuations without proportional cost increases.
This facility isn't merely about cost reduction – it's about capability expansion. The advanced automation will enable Cardinal to handle its 70,000 daily pharmaceutical and specialty deliveries with greater reliability while creating capacity for growth. The implementation of coordinated material flow management across robotics, conveyance, and sorting systems represents a step-change in distribution sophistication.
The investment aligns with Cardinal Health's multi-year productivity strategy and demonstrates commitment to their core pharmaceutical distribution business. With completion targeted for fall 2027 and the creation of over 100 jobs, this represents a long-term strategic investment rather than a quick operational fix. This second major distribution center announced since 2024 indicates Cardinal Health is systematically modernizing its entire distribution network to maintain competitive advantage in pharmaceutical logistics.
"We're continuing to make strategic investments in our core distribution network to drive service, enhance efficiency and meet the evolving needs of our customers with even greater reliability and responsiveness," said Debbie Weitzman, CEO, Pharmaceutical & Specialty Solutions. "Expanding and modernizing our distribution footprint reinforces our ability to drive growth and support our teams."
This 230,000-square-foot facility will establish a new benchmark in pharmaceutical distribution, featuring an industry-first robotic storage and retrieval system, designed and implemented in partnership with Swisslog, a leading provider of warehouse automation, robotics, and software. The facility's advanced automation technology provides real-time inventory visibility, intelligent order fulfillment, and coordinated management of material flow—from receiving to shipping—across state-of-the-art robotics, conveyance, and sorting systems.
"Automation remains a key component of our strategy, and this innovative facility demonstrates Cardinal Health's commitment to operational excellence, safety, and the efficient distribution of the products and services that improve the lives of people each day," said Jamie Barker, SVP, Pharmaceutical & Specialty Supply Chain Operations. "It marks the next major step in our multi-year strategy to drive productivity, improve customer service and enhance employee safety and well-being."
The technology and automation enhancements work alongside Cardinal Health employees to deliver operational efficiencies and improve employee and customer experiences, while supporting fluctuations in volume and labor.
This is the second pharmaceutical distribution center the company has announced since 2024. The
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals and specialty products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; a provider of performance and data solutions; and a global manufacturer and distributor of medical and laboratory products. Our company's customer-centric focus drives continuous improvement and leads to innovative solutions that improve people's lives every day. Learn more about Cardinal Health at cardinalhealth.com and in our Newsroom.
Contacts
Media: Erich Timmerman, erich.timmerman@cardinalhealth.com
Investors: Matt Sims, matt.sims@cardinalhealth.com
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SOURCE Cardinal Health
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