Consolidates service parts logistics operation from 12 providers to one in drive to ensure SLA compliance, improve customer service
Atlanta June 1, 2006 Royal Philips Electronics has selected UPS to redesign and operate its global service parts logistics (SPL) 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 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.
Royal Philips, which is one of UPS's largest enterprise customers, designated UPS as one of its 26 global strategic partners in 2005 and invited UPS to participate in its supplier forum. That relationship led to the creation of a master logistics agreement between the two companies that covers all potential UPS services, including global transportation, distribution and logistics.
Currently, UPS is providing the Philips companies with:
Additional Articles of Interest
What do CEOs want from their supply chains, and is Supply Chain delivering? Read more in "The Supply Chain Disconnect," the Executive Memo column in the April/May 2006 issue of Supply & Demand Chain Executive.
Stryker Instruments achieved success in inventory optimization by taking a no-frills approach and relying on collaborative supplier relations. Read more in "Keeping Supply Chain Transformation Simple," the Best Practices case study in the April/May 2006 issue of Supply & Demand Chain Executive.
Atlanta June 1, 2006 Royal Philips Electronics has selected UPS to redesign and operate its global service parts logistics (SPL) 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 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.
Royal Philips, which is one of UPS's largest enterprise customers, designated UPS as one of its 26 global strategic partners in 2005 and invited UPS to participate in its supplier forum. That relationship led to the creation of a master logistics agreement between the two companies that covers all potential UPS services, including global transportation, distribution and logistics.
Currently, UPS is providing the Philips companies with:
- Package and express delivery and air freight transportation in the U.S., Europe and Asia Pacific.
- Transportation and installations of cardiovascular and x-ray equipment for Philips Medical in Europe and Asia.
- Trade direct air services of semiconductors from Asia to Europe for Philips Semiconductors.
- Customs brokerage services in the U.S. market.
Additional Articles of Interest
What do CEOs want from their supply chains, and is Supply Chain delivering? Read more in "The Supply Chain Disconnect," the Executive Memo column in the April/May 2006 issue of Supply & Demand Chain Executive.
Stryker Instruments achieved success in inventory optimization by taking a no-frills approach and relying on collaborative supplier relations. Read more in "Keeping Supply Chain Transformation Simple," the Best Practices case study in the April/May 2006 issue of Supply & Demand Chain Executive.
- More articles about UPS.
