UPS 2004 Annual Report Download - page 21

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Please find page 21 of the 2004 UPS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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


UPS sees great promise as supply chain
management continues to take a more prominent
role in the strategic decisions of its customers.
Total supply chain spending around the world
is estimated to be over $3 trillion, of which only
about 10 percent is currently outsourced. The
outsourced market, however, is growing at a 12
percent compounded annual rate.* In addition to
this growth potential, UPS’s expanding supply chain
capabilities will continue to enhance long-term
relationships with customers and drive additional
package volume into the company’s network. n


UPS’s supply chain management capabilities have
helped customers be more successful by providing them
with innovative and effective services.
n The repair and return of laptop computers was cut
from 10 or more days to as little as 24 hours, helping
a computer manufacturer distinguish its repair service
from its competitors, save on repair costs, and provide
better customer service.
n When a camera maker aggressively entered the
digital market, it chose UPS to help improve service to
retailers and speed up orders. UPS created an integrated
system for managing inbound air and ocean freight,
repacking and kitting products to retailer specifications
for final distribution, and providing enhanced visibility
so retailers knew when their merchandise would arrive.
This solution provided customized products for each
retailer, which resulted in a competitive advantage for
the camera manufacturer.

n For a global medical technology company, UPS
developed a flexible order-to-cash solution that achieved
high performance rates for order accuracy and on-time
delivery of their products. The company improved its
customer service and achieved the added flexibility to
better address fluctuations in order volume.
n One of the world’s leading automotive companies
wanted to improve service and reduce costs involved in
the distribution of aftermarket parts. UPS designed a
parts distribution system that provided complete
visibility throughout the supply chain for dealers
ordering parts. The solution reduced the number
of shipments, improved on-time delivery and order
tracking, decreased inventory and transportation costs,
and raised dealer satisfaction to new heights.
n A Canadian cosmetics company used UPS Trade
DirectSM Cross Border service to consolidate multiple
orders into one shipment into the United States, and then
break it into individual orders for final delivery to U.S.
customers. This solution cut shipping costs by generating
a single customs fee. Products also arrived more quickly,
bypassing costly warehouse stops for repackaging.