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UPS says it has been selected by Royal Philips Electronics to redesign and operate its global service parts logistics network in an effort to improve customer service at its Medical Systems division.
UPS must ensure that customers in 50 countries 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.
UPS is to provide material storage and inventory management, order fulfillment, inbound and outbound transportation, global visibility and reporting, as well as inspection, re-packaging and labeling.
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 Electronics of the Netherlands is active in the healthcare, lifestyle and technology sectors.
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