Siemens Healthineers (ETR: SHL) and DHL Supply Chain announced today that they have inked a comprehensive U.S. service logistics agreement.

The agreement includes the two companies creating a 260,000 ft² distribution center that DHL will operate in Memphis, Tenn.

Under a 10-year service agreement, the Siemens Healthineers distribution operation will occupy more than half of a 422,000 square foot facility that DHL has purchased. The operation will employ about 105 people.

The World Distribution Center will incorporate DHL’s proprietary warehousing and inventory management system. DHL also boasts innovations to boost efficiency and productivity, including automated storage and retrieval systems and augmented reality–assisted picking.

“The Americas is an important growth market for Siemens Healthineers, and the quality, flexibility and speed of the service logistics platform we have established in the region helps us better serve our customers,” said David Pacitti, president and head of the Americas for Siemens Healthineers. “Working with DHL Supply Chain, we have an exciting opportunity to further strengthen our services and support our company’s ambition to deliver a digital advantage for our customers and their patients in this region.”