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New facilities in Memphis and Milton, ON add 1.5 million sq. ft. of capacity
The basic logic of multitenant, third-part logistics (3PL) services is that by putting multiple smaller-capacity healthcare suppliers in one facility, they can enjoy lower overheads and operating costs than running multiple small facilities. Additionally, multitenant 3PL enables clients to flex their supply chain needs based on swings in business volume. That logic is being put into action in a big way by GENCO, which has opened two new facilities in Tennessee and Ontario to serve healthcare products suppliers.
“Due to increasing margin pressures within the healthcare industry, manufacturers of medical devices, diagnostic testing and pharmaceuticals are hyper-focused on streamlining their supply chain and enhancing overall efficiency in order to stay competitive,” said Kevin McPherson, VP of healthcare at the Pittsburgh, PA company, in a statement. “We can better help healthcare customers, of all sizes, with their logistics challenges by offering this more flexible solution. It allows our customers to focus less on their supply chain and more on developing innovative products and services that improve the cost, quality and availability of patient care.”
The Memphis facility (1.1 million sq. ft.) is adjacent to FedEx’s Super Hub, and the Milton facility (400,000 sq. ft) is near FedEx’s hub at Toronto’s Pearson International Airport. According to the company, the warehouses feature state-of-the-art infrastructure and include advanced warehouse, labor and quality management technology. The facilities will also be properly licensed to support kitting and relabeling activities. In addition to basic 3PL services, GENCO’s healthcare logistics team offers network optimization analysis, inbound and outbound fulfillment, reverse logistics, cold chain packaging, kitting, relabeling, and a full suite of transportation management services.