IU Health breaks ground on $9M integrated supply center

As part of its new hospital-run logistics plan, Indiana University Health will construct an integrated service center in Plainfield, Ind.

The 300,000-sqaure-foot building will rely on a robotically controlled picking system to improve medical supply distribution to the Indianapolis-based health system's numerous hospitals and medical facilities across the state.

Through standardizing inventory, ordering in bulk at a discounted price, streamlining delivery routes, achieving efficient product returns and effectively restocking inventory, IU Health expects to lower supply costs by around $3 million a year.

"This project will fundamentally change the way we handle supplies for our entire network of hospitals and medical offices," said Dennis Mullins, vice president of supply chain operations at IU Health. "This will be a fully integrated service center that leverages proven supply chain technology so we can do our part in improving the way healthcare is delivered."

The building, which has a price tag of about $9 million, is expected to open in the second quarter of 2017.

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