Originally created 09/30/03

UPS reaches distribution deal with Fujitsu

ATLANTA -- United Parcel Service has reached a deal to be the sole carrier of repair parts in North America for a key business unit of Japanese computer giant Fujitsu.

Terms of the three-year deal announced Monday between UPS and Fujitsu Technology Solutions, Inc. were not disclosed.

The deal means UPS will deliver parts needed to support technical warranty repair of Fujitsu's Primepower computer servers. Corporations use the servers to support large databases.

Fujitsu had been using 37 vendors to provide distribution and logistics for the business unit. In an effort to reduce costs by 50 percent, the company has chosen to streamline the service with the help of UPS, which beat out several other companies, including DHL, for the contract.

"UPS was the only one that had all of the solutions that we were looking for," said Richard Rea, manager of logistics operations for Sunnyvale, Calif-based Fujitsu Technology Solutions. He cited UPS's vast distribution capabilities with 190 aircraft.

In addition to using UPS' distribution and transportation network, Fujitsu will also receive logistics services. UPS will use forecasting software to optimize Fujitsu inventory levels and increase order fill rates.

Also, UPS call centers will receive emergency orders directly from Fujitsu field technicians, speeding up response times for their customers.

Fujitsu, which has had a business relationship with UPS for years, will continue to use a variety of UPS services including distributing critical parts from 40 field stocking locations via UPS SonicAir, UPS's same day service, and the UPS small package network.

Fujitsu Technology Solutions, Inc. is a wholly owned subsidiary of Tokyo-based Fujitsu Ltd., the world's fourth-largest computer company. Atlanta-based UPS is the world's largest shipping carrier.

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