XPO Logistics is expanding its presence in the health care industry by landing a contract as the third-party logistics provider for Trinity Health, the two companies said March 9.
Trinity, a network of 90 hospitals and 124 continuing-care facilities in 21 states, is building a supply distribution center in Fort Wayne, Indiana. The $26 million project will service the Great Lakes region of the Midwest and be the first of four such centers that are planned.
XPO has signed on to “manage and operate” the new facility as Trinity’s “contract logistics manager,” the joint statement said.
“This initiative represents an enormous change in the way we stage and move supplies to our hospitals,” said Lou Fierens, a Trinity senior vice president.
Ashfaque Chowdhury, XPO’s president of supply chain in the Americas and Asia-Pacific, said the facility “will boost the local economy and deliver on our promise to Trinity Health of consistent, efficient, high-quality service.”
XPO spokesman Gary Frantz said the relationship with Trinity is new and was sealed as a 10-year contract. However, XPO does have experience with health care, calling it “a significant industry vertical in which we have been participating for nearly 10 years. Customers include health systems like Trinity Health as well as medical equipment and device manufacturers.”
Frantz also said XPO’s acquisition of Con-way Inc. last year played a role because of Con-way’s Menlo Worldwide 3PL unit.
“The capabilities, experience and expertise acquired with Menlo were a key asset in this engagement. Now, combined with the larger resources of XPO’s supply chain group, and our experience helping major brands in other verticals pursue supply chain-led business transformations, we have a tremendous solution set to offer to the health care community,” Frantz said.
Site preparation is scheduled to begin before the end of March, and construction is supposed to take about a year.
Trinity is based in Livonia, Michigan, and it receives 2.5 million patient visits a year at its facilities. XPO is based in Greenwich, Connecticut.