Why This Matters to Distributors: Medline’s rapid recovery shows that supply chain resilience now depends on more than a backup warehouse. Distributors increasingly need diversified networks, flexible transportation capacity and real estate partners that can quickly replace lost distribution space.
Medline Inc. is adding another 1 million-square-foot distribution center in California as it continues rebuilding its network after a June fire destroyed one of its largest facilities.
The company announced on July 20 that it will open a new distribution center in Perris, California, developed in partnership with logistics real estate firm IDI Logistics.
“This investment marks another step in the continued growth of our California distribution network,” Jim Eveland, Medline’s vice president of regional operations, said in a statement. “The additional capacity in Perris enhances the flexibility and resiliency of our supply chain while reinforcing our commitment to healthcare providers across the state.”
The expansion follows a June 11 fire that destroyed Medline’s 1 million-square-foot distribution center in Tracy, California, which served healthcare providers throughout Northern California. All employees and contractors evacuated safely, according to the company.
The fire spread to a neighboring FedEx facility before firefighters contained it, according to South San Joaquin County Fire Authority Chief Randall Bradley. The cause remains under investigation by local authorities and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which is assisting with the origin investigation.
On June 30, a Tracy homeowner filed a lawsuit in San Joaquin County Superior Court against Medline and warehouse owner Prologis Inc., alleging negligence and claiming toxic smoke and debris from the fire caused respiratory injuries.
Medline moved quickly to restore the lost capacity.
On July 6, the company signed leases for a 925,000-square-foot warehouse on Sugar Road in Tracy, less than 10 miles from the destroyed facility, for immediate occupancy. It also leased a 709,000-square-foot distribution center in nearby Stockton that is scheduled to open in January 2027.
Together, the two facilities add more than 1.6 million square feet, expanding Medline’s customer-facing Northern California footprint by about 45%.
CEO Jim Boyle said bringing the replacement Tracy facility online within a month “speaks to our incredible dedication to making healthcare run better every day for our customers.”
With the addition of Perris, Medline expects its California distribution network to approach 5 million square feet by mid-2027. The company said the new facilities will incorporate many of the same automation and artificial intelligence technologies already deployed across its distribution network.
Perris Mayor Michael Vargas said the project will create jobs, support economic growth, and reinforce the city’s position as a logistics hub.
The recovery underscores how quickly the loss of a major distribution center can ripple through a supply chain—and how national distributors are investing in network redundancy to minimize disruption.
Medline said it maintained 24/7 product shipments after the fire by activating a command center, redirecting inventory through secondary and tertiary distribution centers, and expanding both its MedTrans fleet and third-party trucking capacity.
The response highlights the growing importance of diversified distribution networks, established logistics partnerships and the ability to secure replacement warehouse space quickly. Those lessons extend beyond healthcare distribution to industrial, electrical, building materials and other sectors where distributors increasingly operate large, centralized facilities.
Medline is scheduled to report second-quarter 2026 results Aug. 5, providing the first indication of the financial impact of the fire and the cost of rebuilding its California network.
The cause of the Tracy fire is under investigation.
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