For Intermountain Health's supply chain strategy, 40,000 more square feet means more than $12 million in annual savings.
The Salt Lake City-based health system recently expanded its medical supply warehouse in Midvale, Utah, to increase bulk space by 30%. Medical supplies that were previously stored in rented spaces will be moved to the warehouse, which the system said will save more than $12 million each year.
Fewer miles driven to transport these supplies will also bring more savings, Intermountain said in a June 24 news release.
The expansion also affects the pharmacy fulfillment center, which already operates at the site. The center fills nearly a million prescriptions every year, and it now has more room for new storage machines and upgraded automated systems.
The warehouse handles daily deliveries to sites in Colorado, Idaho, Nevada and Utah.