Tag: UPS

UPS opens new logistics facility to serve healthcare industry

UPS today officially opened its largest logistics facility dedicated to serving the healthcare industry, a 500,000-square-foot distribution center located near the company’s Worldport global air hub. Thanks to the location, air shipment orders received as late as 11 pm can arrive at their destination the next day, while packages shipped via UPS’s ground network can reach 70 percent of the United States in two days or less. “With this facility, we have added another healthcare distribution center that can help our clients meet the many operational and regulatory challenges they face,” said Rocky Romanella, president and general manager of UPS Supply Chain Solutions’ Americas region, speaking at the official dedication ceremony here. “This facility will allow us to manage pharmaceutical and medical devices and equipment in a secure and approved environment.”

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UPS could make hostile bid for European firm

UPS chairman and chief executive Michael Eskew said yesterday he would not ”rule out” making a hostile bid for any large European logistics company.
The US parcels giant has been linked with Exel, the British supply chain group that last week agreed a pounds 3.7 billion takeover by Deutsche Post, and has retained Goldman Sachs to advise it. ”If we think it helps and the customers need it, we would [make a hostile bid],” he said during an interview at the company’s global headquarters in Atlanta, Georgia. He declined to comment on UPS’s interest in Exel. Sources close to the company said its interest in Exel had been ”overblown”, indicating the firm was looking to ”fill holes” in its international operations but not take on such a ”huge” firm as Exel. Kurt Kuehn, head of global sales and marketing, said: ”Deutsche Post’s view is whoever is biggest, wins. Our view is who has the best business wins.” He added: ”Deutsche Post is amazing. Their appetite: it would have give me a stomach ache long ago.” UPS’s strategy is to build a global managed supply chain service.

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Dell transfers deliveries to US Postal Service

Dell is to shift some of its computer deliveries from private parcel shippers to the US Postal Service, underlining the growing competitive threat posed by the government-owned organisation to companies such as UPS and FedEx. The computer maker plans to drop off some newly-bought computers at US post offices for customer pick-up rather than delivering them directly to homes through private couriers. Any loss of business from Dell would be a particular blow to UPS, which counts the company among its 20 largest customers. Analysts have been warning for months that the US Postal Service is becoming a more powerful force in the US parcel market. The additional competition comes at a time when UPS is facing growing competition from FedEx and German-owned DHL in its domestic market. Dell said the change in shipping arrangements would initially affect only the company’s most basic products, with the majority of shipments continuing to be made through UPS. However, a spokeswoman said Dell planned to eventually offer the choice of home delivery or post office pick-up to all customers.

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UPS finds favour with German logistics managers

United Parcel Service, the US parcel forwarding company, enjoys the most favourable image among logistics service providers on the German market, according to the annual survey by the market research institute Emnid involving 300 logistics managers. The German shipping and logistics company Hapag-Lloyd Container Line ranks second, while Lufthansa Cargo, the freight arm of the airline group Deutsche Lufthansa, ranks third. They are followed by DPD Deutscher Paketdienst, which belongs to the French group La Poste, US group Federal Express (Fedex) and Hermes, a subsidiary of the German mail order group Otto. DHL, the German market leader, ranks only 11th with a verdict of ‘average’.

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UPS purchase of LYNX Express is cleared

European Union antitrust regulators approved UPS Inc.’s proposed USD96.3 million purchase of British parcel carrier LYNX Express Ltd. on Monday, saying the deal posed no competition concerns in the European market. UPS announced the deal in July, aiming to expand its presence in Europe. UPS said the deal is expected to close by the end of the year. The European Commission said the transaction “would not significantly impede effective competition,” adding that LYNX’s domestic and international delivery services did not overlap with the European operations of Atlanta-based UPS. LYNX Express, based in Nuneaton, England, is majority owned by the private equity firm Bridgepoint Capital Ltd.

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