Medline has announced a lease agreement for an existing 925,000-square-foot warehouse in Tracy, California, for immediate occupancy, as well as a 709,000-square-foot facility nearby in Stockton, California, for use in January 2027.
These two facilities total more than 1.6 million square feet of new medical supplies distribution center space and more than supplant the 1 million-square-foot Tracy facility that was destroyed by fire on June 11. This new capacity to serve regional healthcare providers also represents a 45% expansion of Medline's customer-facing Northern California footprint from just one month ago.
MORE: Medline Activates 'Network Contingency Plan' After Blaze Destroys Warehouse
Medline's newly leased 925,000-square-foot distribution center is located less than 10 miles from the previous Medline site in Tracy. Already largely built to meet Medline's distribution needs, this facility is planned to start accepting deliveries from the company's distribution network and start delivering to customers from Medline's fleet of MedTrans trucks in the coming months. This new facility also is expected to eventually house many of the same AI-powered technologies already common at other Medline facilities.
Additionally, Medline's new 709,000-square-foot facility in Stockton is planned to open in January 2027, and alongside the new Tracy facility will help service healthcare providers and Medline customers across Northern California.
Across the state of California, Medline's distribution center footprint is expected to continue to grow and reach nearly 5 million square feet by mid-2027. This includes a new 1 million-square-foot distribution center being built in Perris.
After last month's fire, Medline said it activated a command center and a network contingency plan and began incorporating secondary and tertiary distribution centers. Product distribution previously supported by the Tracy facility has been reassigned and is in the process of being deployed to other facilities within our regional network to help maintain service and support customer needs.
"Medline's resilient supply chain is designed to respond to unexpected disruptions, and we are leveraging our nationwide distribution and transportation network to help minimize the impact on customers," the company said in a statement. "Medline is working with our insurance carriers. We are also working with the local authorities to assess the impact of the fire. We remain committed to serving our customers and providing regular updates."
