Medline has expanded its Prime Vendor model outside the U.S. for the first time through a new agreement between Medline Canada and Mohawk Medbuy, one of Canada’s largest healthcare procurement organizations.

The Northfield, IL-based medical-surgical products distributor said the agreement will support warehouse and supply chain logistics for selected hospitals in Southwestern Ontario. The arrangement is set to begin this fall and will apply best practices from similar Medline agreements with hundreds of healthcare providers in the U.S.

Under the agreement, Medline Canada will handle warehouse and supply chain logistics for participating hospitals through a stockless distribution model. The company said that model will deliver customized, low-unit quantities directly to care sites on a frequent basis to improve supply availability, service reliability and delivery cost efficiency.

Medline said the agreement mirrors its U.S. Prime Vendor model, under which healthcare providers enter long-term agreements with the company as their consolidated distributor and logistics provider for medical-surgical product needs. The model gives Medline greater visibility into purchasing patterns and demand dynamics, which the company said helps it anticipate customer needs and support service levels.

“This is a major milestone for Medline in Canada and supports the evolution in how healthcare supply chains are managed in this market,” said Ernie Philip, President of Medline Canada and Medline Latin America. “This first Prime Vendor agreement in Canada with Mohawk Medbuy is expected to help their hospitals move beyond traditional distribution and toward a more connected, responsive and efficient model that’s designed to make healthcare run better.”

Medline Canada will support the program with nearly daily distribution deliveries from its Guelph, Ontario, facility. The company will also provide supply chain services through its Supply Chain Solutions division, including delivery and storage optimization, automatic product substitutions for pre-approved items, backorder management with national brands, data solutions, tools and technologies.

“Dependable supply chain services are a critical component of our members’ ability to deliver sustainable, quality care to their patients,” said Tony DiEmanuele, Mohawk Medbuy President and CEO. “This collaboration with Medline aligns well with our multi warehouse expansion plan for Ontario to provide that surety of supply.”