|Olympus' current facility in Bartlett, TN.|
Tokyo's Olympus announced that it is building a $12 million national service and distribution center in Bartlett, a suburb of Memphis, TN. It will result in the creation of 280 jobs. Construction on the 100,000-square-foot facility is expected to begin in the spring.
The move will help Olympus honor its guarantee of next-day replacement of surgical equipment at no additional charge, local news outlet The Commercial Appeal points out.
Olympus already employs about 150 people in Bartlett, where it manufactures and develops ear, nose and throat (ENT) devices.
The company will soon have two national service centers, with the other one located in San Jose, CA. "The decision to build a second national service center was based on Olympus' need for additional capacity to handle the growth expectations in the service, supply chain and logistics areas of its medical business," says a release by the Tennessee state government.
"In addition to unparalleled products, we strive to provide world-class service to our healthcare customers every day. Our future Bartlett service and distribution center will further enable this goal as we take advantage of the unique logistics and transportation capabilities in the Memphis area, benefit from close proximity to our customers in the eastern United States, and enhance our ability to expedite turnaround times," Olympus Corporation of Americas CEO Nacho Abia, in a statement.
He was referring to the presence of FedEx's Memphis headquarters and shipping hub at the airport, which has made the city a crucial center for logistics and product distribution.
Indeed, the development demonstrates the growing importance of the timely delivery of devices to industry players. FedEx rival UPS is also aiming to capitalize on the trend, and recently opened a 200,800-square-foot distribution and warehousing facility in New Jersey that's aimed at meeting the special needs of medical device manufacturers.