Merck outsources logistics to UPS
Integrated logistics provider UPS said Tuesday its Supply Chain Solutions subsidiary has won a contract to manage a significant portion of Merck & Co.’s U.S. distribution of pharmaceuticals and vaccines as well as provide package transportation.
Merck has outsourced the operation of its two key temperature-controlled distribution centers in Atlanta and Reno, Nev.
UPS Supply Chain Solutions has made health care logistics one of its core competencies. The two facilities add more than 200,000 square feet of high-tech warehouse space to 23 North American facilities already under its management for pharmaceutical and medical device customers. UPS plans this year to open dedicated health care logistics facilities in Puerto Rico and the Netherlands, bringing its total global square footage for health care to 3.5 million.
UPS will create efficiencies by allowing other customers to use excess space in the Merck distribution centers and by integrating Merck shipments into its existing health care distribution network.