UPS 2006 Annual Report Download - page 17

From the beginnings in Germany 30 years ago, our European network has grown significantly and now fully
supports air and ground shipments throughout the continent. We believe we have the most comprehensive
integrated delivery and information services portfolio of any carrier in Europe. In other regions of the world, we
rely on both our own and local service providers’ capabilities to meet our service commitments.
Through more than two dozen alliances with Asian delivery companies that supplement company-owned
operations, we currently serve more than 40 Asia Pacific countries and territories. Two of the fastest growing
economies in the world, China and India, are among our most promising opportunities.
Our Canadian operations include both intra-Canada and import/export capabilities. We deliver to all
addresses throughout Canada. We are also the largest air cargo carrier and a leading logistics provider in Latin
America and the Caribbean.
Technology. We are a global leader in developing technology that helps our customers optimize their
business processes to lower costs, improve service and increase efficiency. We have a strong global capability as
a mover of electronic information. We currently collect electronic data on 97% of the packages that move
through our U.S. system each day – more than any of our competitors.
In 2003, we announced plans to re-engineer our package pickup and delivery processes, which we believe
will result in gains in efficiency, reliability and flexibility. Once the new technology is deployed in our package
sorting facilities, we anticipate achieving savings through productivity improvements as well as in reduced fuel
usage. By the end of 2006 we had deployed this technology for use by almost 74% of our drivers.
Technology powers virtually every service we offer and every operation we perform. Our technology
initiatives are driven by our customers’ needs. We offer a variety of on-line service options that enable our
customers to integrate UPS functionality into their own businesses not only to conveniently send, manage and
track their shipments, but to provide their customers with better information services. We provide the
infrastructure for an Internet presence that extends to tens of thousands of customers who have integrated UPS
tools directly into their own web sites.
Broad, Flexible Range of Services and Integrated Solutions. Our portfolio of services enables customers to
choose the delivery option that is most appropriate for their requirements. Substantially all of our U.S. small
package delivery services are guaranteed.
Our express air services are integrated with our vast ground delivery system – one system handling all
products. This integrated air and ground network enhances efficiency, improves productivity and asset
utilization, and provides us with the flexibility to transport packages using the most reliable and cost-effective
transportation mode or combination of modes. Our sophisticated engineering systems allow us to optimize our
network efficiency and asset utilization on a daily basis. This unique, integrated global business model creates
consistent and superior returns – by far the best in our industry.
Increasingly, our customers benefit from business solutions that integrate many UPS services in addition to
package delivery. We offer over 60 supply chain services – such as freight forwarding, customs brokerage, order
fulfillment, and returns management – that help improve efficiency of the supply chain management process.
Customer Relationships. We focus on building and maintaining long-term customer relationships.
Thousands of customers access us daily through UPS On-Call PickupSM for air and ground delivery services. In
addition, there are approximately 150,000 domestic and international access points to UPS. These include: nearly
40,000 branded drop-boxes, more than 1,000 UPS Customer Centers, over 5,800 independently owned and
operated The UPS Store®and Mail Boxes Etc.®locations worldwide (over 4,400 in the U.S.), more than 2,400
Alliance partner locations, in excess of 15,000 Authorized Shipping Outlets and commercial counters – along
with more than 85,000 UPS drivers who can accept packages given to them.
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