Why This Matters to Distributors: Medline has restored and expanded its Northern California distribution capacity less than one month after losing its Tracy distribution center to fire. The move underscores how large distributors are using flexible logistics networks and available warehouse space to maintain customer service and strengthen supply chain resilience following major disruptions.
Medline has leased more than 1.6 million square feet of distribution space in Northern California, expanding its regional logistics network less than one month after a fire destroyed its 1 million-square-foot distribution center in Tracy, California.
The company announced has signed a lease for an existing 925,000-square-foot warehouse in Tracy for immediate occupancy and a 709,000-square-foot distribution center in nearby Stockton, California, that is scheduled to open in January 2027.
Together, the two facilities total approximately 1.63 million square feet, more than replacing the capacity lost in the June 11 fire while increasing Medline’s customer-facing distribution footprint in Northern California by 45%, according to the company.
The Tracy warehouse is located less than 10 miles from the company’s former distribution center and is already largely configured for high-volume distribution operations. Medline said it expects the facility to begin receiving inventory from its national distribution network and shipping products through its MedTrans private fleet in the coming months.
The company also said the Tracy facility is expected to eventually incorporate AI-powered warehouse technologies already deployed at other Medline distribution centers.
The Stockton distribution center is expected to open in January 2027 and, together with the Tracy facility, will serve hospitals and healthcare providers across Northern California.
The leases represent a significant milestone in Medline’s recovery following the June 11 fire that destroyed one of its largest West Coast distribution centers. In the weeks since the fire, the company has continued supplying customers through its broader distribution network while securing replacement capacity.
“The Medline team’s resilience, determination and commitment to serving healthcare providers have been nothing short of extraordinary,” says CEO Jim Boyle. “Securing and standing up a new facility in less than one month, while increasing our customer-facing footprint in Northern California by 45%, speaks to our dedication to making healthcare run better every day for our customers.”
Doug Golwas, Medline’s chief commercial officer, said the additional distribution capacity will strengthen the company’s ability to serve healthcare providers across the West Coast.
Johnny Glover, senior director of operations for Medline’s former Tracy distribution center, will lead operations at the new Tracy facility.
Medline said its California distribution network will continue to expand over the next year. The company expects its distribution footprint in the state to reach nearly 5 million square feet by mid-2027, including a new 1 million-square-foot distribution center under construction in Perris, California.
The company did not disclose financial terms of the lease agreements.
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