Royal Philips Electronics has chosen UPS to redesign and manage its service parts logistics (SPL) network. This is intended to significantly improve customer service in the Medical Systems Division.
UPS’s task will be to provide Philips Medical customers in 50 countries around the world with parts delivery in accordance with signed agreements, including same-day delivery of critical parts and return services. Previous practice assumed next-day delivery. The network created by UPS will replace the regional service system, which operated based on 12 logistics providers in approximately 40 locations.
As part of the SPL contract, UPS will provide warehouse space for materials before loading, as well as inventory management, order fulfillment, inbound and outbound transportation, global shipment visibility and reporting, as well as supervision, repackaging, and labeling services.
The signing of the five-year contract concludes Philips Medical’s search for a primary logistics provider. UPS will guarantee the distribution of critical parts, warehousing, and return services through the UPS Supply Chain Solutions network, which has over 1,000 facilities, including central distribution centers in Louisville, USA, Roermond, the Netherlands, and Singapore, Shanghai, and over 100 global SPL centers.