Philips Medical Selects UPS to Run Global logistics Network

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Royal Philips Electronics of the Netherlands announced it has tapped UPS to redesign and operate its global service parts logistics network in a move to significantly improve customer service at its Medical Systems division.

Royal Philips Electronics is one of the world's biggest electronics companies and Europe's largest, with sales of $37.7 billion in 2005.

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. Currently, the company relies upon next business day service.

The UPS-designed network will replace a regional response system using 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.

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