Livonia, Mich.-based Trinity Health is partnering with third-party logistics provider XPO Logistics to provide supply chain management services.
Here are five things to know about the partnership.
1. Under the partnership, Trinity Health plans to develop its own transport and distribution center network and use XPO to manage end-to-end order flows, shipping, warehousing and fulfillment, according to a DC VELOCITY report.
2. Trinity Health will build the first of four supply distribution centers in Fort Wayne, Ind.
3. The facility in Fort Wayne will represent the single entry point for all manufacturers and suppliers serving Trinity Health, the health system said. Trinity Health also plans to use the facility as the central restock and inventory fulfillment site for additional strategic satellite warehouses that will be brought online over the next five years.
4. Construction of the new facility is expected to take about a year with initial site preparation expected to begin in the first quarter of this year.
5. Health system officials said the new model gives Trinity Health more direct control over the part of the supply chain that is typically managed by an intermediary. This initiative also allows Trinity Health to collaborate with suppliers in a much deeper and more productive way by eliminating non-value-added work for all the participants in the supply chain, including its caregivers, Lou Fierens, senior vice president of supply chain and fixed asset management at Trinity Health, said in a prepared statement.
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