IU Health Breaks Ground on Logistics Center

IU Health Breaks Ground on Logistics Center

Indiana University Health will create one of the most sophisticated hospital-run supply chains in the nation when it moves into an IU Health integrated service center (ISC) being built in Plainfield, Ind.

The new building will contain a robotically controlled picking system and be tied into other advanced logistics processes that will let IU Health enhance patient care behind the scenes by improving the distribution of critical medical and other supplies to its statewide system of hospitals and other medical facilities.

Under its new logistics plan, IU Health will use the 300,000-square-foot building to improve efficiency and lower costs by about $3 million a year through standardizing inventory, ordering in bulk at a discount, streamlining delivery routes and achieving efficient product returns and re-stocking of inventory.

“This project will fundamentally change the way we handle supplies for our entire network of hospitals and medical offices,” said Dennis Mullins, vice president of Supply Chain Operations for IU Health. “This will be much more than a best-of-breed hospital warehouse. This will be a fully integrated service center that leverages proven supply chain technology so we can do our part in improving the way healthcare is delivered.”


What: A 300,000-square-foot building designed primarily to receive, hold and process inventory used to support patient care at IU Health hospitals and other facilities. The building also will contain office space for IU Health’s supply chain and logistics administrative teams.

Features: The building will use robotic technology to pick supplies from stacks of bulk inventory – a first for IU Health.

Cost: About $9 million in equipment and related expenses for IU Health, which will be the sole user of the building under a long-term lease with Browning Investments, the developer constructing the facility.

Savings: IU Health expects to save $3 million a year in supply chain expenses after the ISC building opens.

Opening: Phase one will be complete in the second quarter of 2017. Additional service lines and pharmacy will be added by the end of 2018.

Employment: About 40 people will run the ISC facility. Many will move from other IU Health locations. Another 70 IU Health supply chain team members will be based in the building.