Royal Philips Electronics (Amsterdam) announced that it has tapped UPS (Atlanta) to redesign and operate its global service parts logistics (SPL) network in a move to significantly 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 utilizing 12 logistics providers in about 40 locations.
As part of the global SPL contract, UPS will provide material storage and inventory management, order fulfillment, inbound and outbound transportation, global visibility and reporting, as well as inspection, re-packaging and labeling.
The five-year contract culminates 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 centers in Louisville, Ky.; Roermond, the Netherlands; Singapore and Shanghai, and more than 100 global SPL facilities.
"Philips Medical is raising the bar for service in its industry and UPS is excited by the opportunity to be part of this effort," said Bob Stoffel, UPS senior vice president, Supply Chain Group. "We already have a close relationship with Philips Medical and we look forward to helping Philips International further streamline its complex transportation and logistics operations."