UPS has expanded the geographical coverage of its existing distribution and logistics agreementwith Merck, a global manufacturer of pharmaceutical products, beyond North America to Europe and
parts of Asia and Latin America, including the emerging markets of China and Brazil.The cooperation between UPS and Merck began in 2003 with package transportation and deliveryservices in the United States. The agreement expanded over time to include North Americandistribution, warehousing and multi-modal transportation. In the United States and Canada, UPSmanages warehousing operations for Merck products that require strict temperature and environmentalcontrols, including vaccines and specialty pharmaceutical products.
Under the broadened contract, UPS will provide distribution, warehousing and multi-modaltransportation of Merck products in certain markets in Asia and Latin America, including theemerging markets of China and Brazil. UPS now also provides transportation services in Europe forthe pharmaceuticals company.
UPS said innovative solutions to better meet customer needs are already underway in China andBrazil where it is establishing a distribution centre to support Merck’s manufacturing andpackaging facilities to help speed delivery of Merck products in those markets.
“The UPS-Merck collaboration brings together the expertise of two companies that are globallystrong, customer-focused and committed to driving positive change in the healthcare supply chain,”said Kurt Kuehn, UPS Chief Financial Officer. “UPS is investing deeply to align the broad range ofcapabilities that we’ve developed to meet the very unique needs of this industry.”
As a result of the expanded agreement, Merck expects to achieve long-term cost efficiencies.Financial details of the agreement were not disclosed.
“This expanded agreement with UPS allows us to focus on our core business as a global healthcareleader that looks for innovative ways to bring our medicines and vaccines to patients in emergingmarkets and markets around the world,” said Willie A. Deese, executive vice president andpresident, Merck Manufacturing Division. “UPS has the proven logistics expertise to deliver Merck’sproducts with speed, consistency and care to our customers and patients.”
