UPS has been selected by Merck to manage a significant portion of its U.S. distribution of pharmaceuticals and vaccines as well as to provide package transportation services. Through its subsidiary, UPS Supply Chain Solutions, UPS has assumed control of two key Merck distribution centers in Atlanta, GA and Reno, NV, which provide Merck with temperature-sensitive storage, packaging and transportation services for its pharmaceutical and vaccine products.

The two U.S. facilities are cGMP-compliant and add more than 200,000 sq.-ft. of automated healthcare logistics space to UPS’s existing network of 23 compliant healthcare facilities in North America, and two new healthcare facilities in PR and The Netherlands.

This transaction allows UPS to use the new facilities for other healthcare customers and provides Merck with access to UPS’s existing healthcare distribution network. Merck can also use UPS services to gain additional supply chain flexibility for initiatives such as new product launches. 

UPS services available to Merck will include storage, warehousing, order fulfillment and shipping of pharmaceuticals and vaccines. UPS will assume responsibility for the movement of all package volume for product to the U.S. market.

“Our latest initiative with Merck marks the next step in our relationship to meet this customer’s evolving needs,” said Bill Hook, UPS vice president of global strategy, healthcare logistics. “UPS has invested heavily to provide healthcare customers such key advantages as integrated supply chain solutions combining multiple modes of transportation, plus dedicated healthcare facilities that help them speed new products to market, navigate regulatory compliance and respond to evolving industry demands.”