Medline Signs Symbotic Deal to Test AI Warehouse Automation
Medline will pilot Symbotic’s AI-powered warehouse system in 2027, marking the first use of the retail-proven technology in healthcare supply chains.
Medline has signed a strategic agreement with Symbotic to deploy an AI-powered warehouse automation system, marking the first use of the technology in healthcare. The company will begin with a pilot in 2027 at one of its U.S. distribution centers, according to its announcement on April 16.
The system automates pallet breakdown, storage, retrieval, and order assembly using autonomous robots coordinated by AI software. It is already used in large-scale retail and consumer goods supply chains, where it manages high-volume inventory flows and builds store-specific outbound pallets.
Medline said the deployment is intended to improve speed, accuracy, and scalability across its distribution network, which supports hospitals and other care providers. The company operates 45 distribution centers in the U.S. and serves more than 100 countries.
“Our vertically integrated solution of manufacturing and distributing products to all points of care is unique among healthcare suppliers,” said Sean Halligan. “Medline’s strategic investment in this technology will help us provide even more efficiency for our customers and help them meet their operational, clinical and financial goals”
The agreement extends Medline’s broader investment in automation across its supply chain. The company has already introduced goods-to-person robotic picking systems and automated packaging as part of efforts to modernize fulfillment operations
The Symbotic system adds a centralized orchestration layer that uses AI to manage fleets of robots and continuously optimize storage density and retrieval paths. In retail environments, the system has been deployed to increase throughput and reduce manual handling
Healthcare supply chains have historically adopted automation more slowly than retail due to higher accuracy requirements, product variability, and regulatory constraints. Medline’s decision to begin with a single-site pilot reflects those operational considerations, with the company testing the system before broader rollout.
“We are proud to partner with Medline on the next step in its transformation,” said Mike Dunn. “Given the importance of accuracy, speed and cost in this space, this agreement is a great validation of the power of the Symbotic System”
For Symbotic, the agreement marks an expansion beyond its core retail customer base. The company’s systems are widely used in grocery and general merchandise supply chains, and the Medline deal introduces its platform into a new industry with different operational requirements.
Medline said the investment is part of a longer-term effort to strengthen supply chain resilience and performance as demand patterns shift across healthcare settings. The company did not disclose financial terms of the agreement.