Business Process Solutions

UPS and Jabil to Provide Reverse Logistics Services

14 February 2013

Logistics provider UPS and EMS Jabil Circuit Inc. have formed a collaborative partnership to provide aftermarket, return and repair services to electronics OEMs on a global scale. By combining UPS’s warehousing and transportation capabilities with Jabil’s reverse logistics and repair services, the venture provides a turn-key supply chain solution that can drive efficiencies, reduce vendor complexity and enhance customer service in the electronics supply chain.

Specifically, the joint UPS/Jabil reverse logistics portfolio includes order fulfillment, next and same day transportation, returns processing, whole unit and component repair, assembly, procurement and vendor management, planning and inventory funding, call center and tech support, trade compliance and the use of The UPS Store locations for product pick-up or drop-off.

Due in large part to the rise of outsourcing over the last decade, electronics OEMs are no longer well-prepared to handle returns, repairs, refurbishment and redeployment of many electronics products. Spare parts need to be stored in close proximity to end customers and repair technicians need to be deployed locally. EMS companies have taken on some of those responsibilities by providing technical services and product support at strategically-located global hubs. However, the administrative tasks of identifying, shipping, tracking and managing product sales and returns are significant and largely handled by logistics providers. Alliances such as UPS/Jabil aggregate all of those service offerings under a single umbrella.

“Jabil is excited to collaborate with UPS,” said Hartmut Liebel, chief executive officer, Jabil Aftermarket Services. “By leveraging Jabil’s and UPS’s complementary aftermarket services and logistics expertise, customers now have access to a comprehensive suite of services from one source that meets all of their unique reverse logistics needs.”

“Our customers’ supply chains are becoming increasingly complex,” said Brad Mitchell, president of UPS global logistics and distribution. “They are looking for industry-leading high-tech aftermarket solutions to build more flexibility and convenience into their returns process. The fact that UPS’s collaboration with Jabil already has resulted in success with several world-leading organizations, such as Dell Computers, highlights the value this solution can offer.”

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