Royal Philips Electronics has chosen UPS to redesign and operate its global service partslogistics (SPL) network in a move to significantly improve customer service at its Medical Systems
division. UPS already provides the Dutch group with a wide range of international express andpackage delivery services around the world.UPS has been given the task of ensuring Philips Medical customers in 50 countries around theworld receive parts according to service level agreements, including same day delivery for criticalparts delivery and return services. That contrasts with the current practice of next business dayservice. The UPS-designed network will replace a regional response system utilizing 12 logisticsproviders in about 40 locations.
As part of the global SPL contract, UPS will provide material storage and inventory management,order fulfilment, inbound and outbound transportation, global visibility and reporting, as well asinspection, re-packaging and labelling.
The five-year contract culminates a search by Philips Medical for a lead logistics provider. UPSwill provide the critical parts, hold for pickup and return services from the UPS Supply ChainSolutions global network of more than 1,000 facilities, including the central distribution centresin Louisville, Ky.; Roermond, the Netherlands; Singapore and Shanghai, and more than 100 global SPLfacilities.
“Philips Medical is raising the bar for service in its industry and UPS is excited by theopportunity to be part of this effort,” said Bob Stoffel, UPS senior vice president, Supply ChainGroup. “We already have a close relationship with Philips Medical and we look forward to helpingPhilips further streamline its complex transportation and logistics operations.”
Royal Philips, which is one of UPS’s largest enterprise customers, designated UPS as one of its26 Global Strategic Partners in 2005 and invited UPS to participate in its Supplier Forum. Thatrelationship led to the creation of a Master Logistics Agreement between the two companies thatcovers all potential UPS services, including global transportation, distribution and logistics.
Currently, UPS is providing the Philips companies with package and express delivery and airfreight transportation in the U.S., Europe and Asia Pacific, transportation and installations ofcardiovascular and x-ray equipment for Philips Medical in Europe and Asia, Trade Direct Airservices of semiconductors from Asia to Europe for Philips Semiconductors, and customs brokerageservices in the USA.
