A team of specialists, who receive extensive training by Philips Medical Systems, install ceiling mounted and freestanding systems.

In 2001, UNI-DATA AG, a UPS Supply Chain Solutions company (a UPS of Atlanta business unit), began the pilot phase of transporting and installing sensitive medical equipment in western European hospitals for Philips Medical Systems, Bothell, Wash. Today, with more than 300 installations of x-ray systems done successfully, later, UPS Supply Chain Solutions and Philips Medical are working in a real partnership and looking to expand to other areas.

“We wanted to speed up the entire process of our supply chain,” says Stefan Busch, logistics manager, Philips Medical Systems, Hamburg, Germany. “With the UPS Supply Chain Solutions program, we have one [entity] responsible throughout the entire process, including the transportation and mechanical installation. We chose UPS because they have the experience within the European market and the experience of handling these types of machines.”

UPS Supply Chain Solutions synchronizes the sourcing, movement, order management, and delivery of sensitive materials and equipment. The installation of the equipment is executed by trained, certified specialists from UPS Supply Chain solutions. These specialist team members are trained at the Philips training center in Best, the Netherlands.

The program is responsible for the delivery and mechanical installation of x-ray systems produced at Philips’ facilities in Best and in Hamburg, Germany. Properly packed and secured by team members, the x-ray systems are transported directly to the destination by truck from Hamburg or Best. Upon arrival, UPS Supply Chain Solutions prepares the medical treatment room before assembling and installing the x-ray components. Much of the work depends on the precise alignment and secure mounting of the systems. UPS completes the transportation and installation within 1 day, allowing Philips technicians time for electrical installation the following day.

The benefits of this new cooperation include bypassing the distribution sites of the equipment because the machines are taken directly from Philips to the hospital that placed the order. As a result, there is no piled inventory or overhead for warehousing staff. Additionally, because of the shorter transportation and installation times, production control can now be aligned exactly to demand. Additionally, in some cases, the efficiency of the entire process has provided for a significant cost reduction to the facility in which the system is installed.

“In total, this project is more effective than what we were previously doing,” says Stephan Rätsch, manager of supply and service logistics at Philips Medical Systems, Hamburg. “With the specialized transportation and specialized crew, there is more concentration on one activity, and that allows for savings in the whole process.”

For 25 years UPS Supply Chain Solutions has been restructuring supply-chain management throughout western Europe at a steady rate.

The program’s current success is hard won.

“In the beginning, it was difficult. We were trying to change the total supply chain from the way companies were used to operating,” says Thomas Gehrling, regional UPS Supply Chain Solutions regional manager, North Germany. “The process of installation by a local provider was no longer efficient but was recognized as being the standard process. Many in the industry were not ready for this type of change. Also, It was difficult convincing companies in other countries to have their products installed by foreigners.”

UPS Supply Chain Solutions overcame these issues and and has grown to install 70% of the Philips x-ray equipment planned for western Europe, and Philips does not intend to stop there.