UPS snaps up four service-parts logistics companies

By Staff -- Logistics Management, 7/1/2000

United Parcel Service appears to be bent on making itself the world's leading provider of service-parts logistics-a service that delivers repair parts from central depots to end users in as few as two hours. Logistics providers are responsible for handling order and inventory management, delivering parts, and providing technical support, including the repair of damaged parts.

Several years ago, UPS bought SonicAir, one of the country's largest providers of service-parts logistics service. Since late last year, UPS has accelerated its expansion in that field. In December, UPS bought Finon Sofecome, a Paris-based company that has 45 field stocking and repair locations in France.

In June, UPS Logistics Group agreed to purchase the service-parts business of Burnham, an Atlanta-based company that has its roots in the moving industry. Burnham had developed an extensive parts-supply and repair network that included more than 50 single- and multiple-client locations in the United States.

Also in June, UPS announced that it would purchase Computer Logistics Solutions (CLS) of Australia, which operates 50 parts-stocking and repair centers in 13 countries, including Australia, New Zealand, India, and all major Asian nations. On the same day, the company said it would buy Comlasa, a Miami-based firm that provides service-parts logistics in 37 Latin American and Caribbean countries.

These acquisitions allow UPS to offer multinational customers-some of which already did business with both UPS and its new acquisitions-worldwide support for critical parts distribution and management. Among the customers that will benefit from a unified, global service are 3Com, Compaq, Sun Microsystems, and Hewlett Packard.

UPS Logistics Group CEO Dan DiMaggio confirmed that his company would continue to focus on service-parts logistics as a source of growth, citing more than $1 billion in contracts awarded to UPS this year. "Service-parts logistics is a critical area for all high-tech businesses," he said in announcing the latest deals. "It helps our customers define service to their customers, both in the United States and increasingly around the world."