Phillips hands service parts logistics to UPS
UPS will redesign and operate the service parts logistics network for Royal Phillips Electronics’ Medical Systems division, the companies said.
Atlanta-based UPS will be responsible for delivering replacement parts to customers in 50 countries within tight service level windows, including same-day delivery and returns for critical components. Under its current regional system, Phillips receives next business day service from 12 logistics providers in 40 locations.
The five-year contract calls for UPS to provide storage and inventory management, order fulfillment, inbound and outbound transportation, global tracking and reporting, as well as inspection, repackaging and labeling.
The new contract extends a strong relationship between UPS and Phillips. UPS already provides Amsterdam-based Phillips with express delivery and air freight service, transport and installation of cardiovascular and x-ray equipment for Phillips Medical in Europe and Asia, semiconductor consolidation for international shipments, and customs brokerage in the United States.
Phillips had sales of $37.7 billion in 2005.