Medline Inc's Business Segments

Medline Inc., established in 1966, is a provider of medical-surgical products and supply chain solutions serving hospitals, surgery centers, physician offices, and post-acute facilities. The company offers approximately 335,000 medical-surgical products through two segments: Medline Brand and Supply Chain Solutions. The Medline Brand segment includes about 190,000 products categorized into Front Line Care (wound care, gloves, skin care, infection control, durable medical equipment), Surgical Solutions (surgical trays, gowns, instruments, orthopedic implants), and Laboratory and Diagnostics (point of care testing, analyzers, diagnostic instruments). The Supply Chain Solutions segment provides approximately 145,000 products from over 1,300 third-party suppliers, including national brands, along with supply chain services such as consulting, warehouse management, packaging, logistics, inventory rationalization, and route planning. Medline operates a Prime Vendor model, establishing multi-year agreements to serve as the primary consolidated logistics partner for customers' medical-surgical needs, aiming to centralize procurement and distribution to enhance cost savings and efficiency. This model supports growth and customer retention, with an average retention rate exceeding 98% over five years. The company focuses on product quality, innovation, and customer feedback in product development and maintains a distribution network that includes global facilities and its own MedTrans truck fleet.

The company operates through two reportable segments: Medline Brand and Supply Chain Solutions. The Medline Brand segment offers approximately 190,000 medical-surgical products organized into three categories: Front Line Care, Surgical Solutions, and Laboratory and Diagnostics. Front Line Care includes wound care products, exam gloves, skin care and incontinence products, environmental cleaning supplies, textiles, hand sanitizer, durable medical equipment, patient plastics, and decolonization and infection control products. Surgical Solutions comprises surgical procedure trays, drapes and gowns, personal protective equipment, sterile wraps, surgical instruments, surgeon’s gloves, procedure kits, and orthopedic implants. Laboratory and Diagnostics includes point of care testing, analyzers and instrumentation, lab and diagnostic consumables, diagnostic instruments, vital signs monitors, and anatomic pathology and phlebotomy products. This segment focuses on product development through customer feedback, innovation, and quality assurance. The Supply Chain Solutions segment offers approximately 145,000 medical-surgical products from over 1,300 third-party suppliers, including nearly all leading national brands. It provides supply chain optimization services such as consulting, outsourced warehouse and technology management, put-away-ready packaging, third-party logistics, inventory rationalization, and route planning. This segment manages costs related to outbound freight, while third-party suppliers handle import and inbound freight costs. Both segments are supported by the Prime Vendor model, a multi-year distribution agreement under which customers commit to using the company for the majority of their medical-surgical product needs, utilizing the company's distribution network and commercial platform to address market requirements.