Philips Medical Selects UPS to Run Global Logistics Network
ATLANTA and AMSTERDAM, May 30, 2006 - Royal Philips Electronics (NYSE: PHG,
AEX: PHI) announced today it has tapped UPS to redesign and operate its global
service parts logistics (SPL) network in a move to significantly 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.
"Philips Medical is raising the bar for service in its industry and UPS
is excited by the opportunity to be part of this effort," said Bob Stoffel,
UPS senior vice president, Supply Chain Group. "We already have a close
relationship with Philips Medical and we look forward to helping Philips
further streamline its complex transportation and logistics operations."
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
- UPS Trade Direct® Air to transport semiconductors from Asia to Europe for Philips
Semiconductors
- Customs brokerage services in the U.S.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of
the world's biggest electronics companies and Europe's largest,
with sales of $37.7 billion (EUR 30.4 billion) in 2005. With activities in the
three interlocking domains of healthcare, lifestyle and technology, and 161,498
employees in more than 60 countries, it has market leadership positions in medical
diagnostic imaging and patient monitoring, color television sets, electric shavers,
lighting and silicon system solutions. News from Philips is located at www.philips.com/newscenter.
About UPS
UPS is the world's largest package delivery company and a global leader
in supply chain services, offering an extensive range of options for synchronizing
the movement of goods, information and funds. Headquartered in Atlanta, Ga.,
UPS serves more than 200 countries and territories worldwide. UPS's stock trades
on the New York Stock Exchange (UPS) and the company can be found on the Web
at UPS.com.
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Except for historical information contained herein, the statements made in this
release constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements, including statements regarding
the intent, belief or current expectations of UPS and its management regarding
the company's strategic directions, prospects and future results, involve certain
risks and uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward-looking statements, including
economic and other conditions in the markets in which we operate, governmental
regulations, our competitive environment, strikes, work stoppages and slowdowns,
increases in aviation and motor fuel prices, cyclical and seasonal fluctuations
in our operating results, and other risks discussed in the company's Form 10-K
and other filings with the Securities and Exchange Commission, which discussions
are incorporated herein by reference.
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