Cardinal Health to open new distribution center in Fort Worth, Texas
Rhea-AI Summary
Cardinal Health (NYSE: CAH) announced the construction of a new 340,000 square foot distribution center in Fort Worth, Texas, supporting its at-Home Solutions business. The facility will consolidate two existing warehouses, adding 74,000 square feet of inventory capacity while retaining current workforce. The center will ship approximately 10,000 packages daily to patients nationwide.
The facility will feature advanced technology including 74 robots, a 1,500-foot automated conveyor system, and four automated box-making machines producing 500 custom boxes hourly. It will utilize a cloud-based warehouse management system with AI capabilities for inventory management. The company reported its best-ever metrics in quality, service, efficiency, and employee safety in Q1 FY2025. The facility is expected to be fully operational by Summer 2025.
Positive
- Consolidation of two warehouses into one larger facility improving operational efficiency
- Addition of 74,000 square feet of inventory capacity
- Implementation of advanced robotics and automation technology
- Record-breaking performance metrics in Q1 FY2025 for quality, service, efficiency, and safety
- Retention of existing workforce during consolidation
Negative
- None.
News Market Reaction 1 Alert
On the day this news was published, CAH gained 2.62%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
New facility will be outfitted with latest robotics and automation technologies
The new 340,000 square foot distribution center will consolidate its two existing warehouses into one larger facility, creating approximately 74,000 additional square feet of inventory capacity and retaining its current workforce. Once open, the facility will ship an average of 10,000 packages per day to patients' homes across the country.
"Our business plays a critical role in the lives of the patients we serve, and we are honored to continue this important work in the
Similar to the distribution centers at-Home Solutions recently opened in
Key technology features include 74 robots, a 1,500-foot-long automated conveyor system and four automated box-making machines that create 500 custom boxes per hour while minimizing waste. Additionally, the facility will use a leading cloud-based warehouse management system that utilizes artificial intelligence to maintain resiliency and flexibility in inventory volume management. The system is used across at-Home Solutions' entire warehouse network to unify distribution operations across demand, labor, robotics, automation, inventory and transportation within a single platform.
"Because of the investments we've made in our warehouse network already, in our first quarter of fiscal year 2025, we reported the best on-record metrics in quality, service, efficiency and employee safety," said Schlissberg. "In Fort Worth and beyond, we will continue to invest in these critical technologies that are already proving their value in improving customer experience while making us a great place to work."
The building is anticipated to be fully operational in the Summer of 2025. Stay updated on career opportunities at the site at cardinalhealth.com/careers.
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals and specialty products; a global manufacturer and distributor of medical and laboratory products; a supplier of home-health and direct-to-patient products and services; an operator of nuclear pharmacies and manufacturing facilities; and a provider of performance and data solutions. 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: Cari Wildasinn, cari.wildasinn@cardinalhealth.com and 614.757.8287
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SOURCE Cardinal Health