Philips Electronics has picked UPS to redesign and operate its global service parts logistics network in a move to improve customer service at its Medical Systems division.
UPS has been given the task of ensuring Philips Medical customers in 50 countries around the world receive parts according to service level agreements, including same day delivery for critical parts delivery and return services. That contrasts with the current practice of next business day service. The UPS-designed network will replace a regional response system using 12 logistics providers in about 40 locations.
As part of the parts contract, UPS will provide material storage and inventory management, order fulfilment, inbound and outbound transport, global visibility and reporting, as well as inspection, re-packaging and labelling.
The five-year contract follows a search by Philips Medical for a lead logistics provider. UPS will provide the critical parts, hold for pickup and return services from the UPS Supply Chain Solutions global network of more than 1,000 facilities, including the central distribution centres in Louisville, Kentucky; Roermond, the Netherlands; Singapore and Shanghai, and more than 100 global SPL facilities.