UPS 2006 Annual Report Download - page 21

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major business centers. We offer a complete portfolio of import, export and domestic services. This portfolio
includes guaranteed early morning, morning and noon delivery to major cities around the world, as well as
scheduled day-definite air and ground services. We offer worldwide customs clearance service for any mode of
transportation.
In January 2007, we had the largest service expansion of our international shipping portfolio in more than a
decade. UPS began offering customers three, rather than two, daily time-definite delivery options to and from the
world’s most active trading markets, giving customers the flexibility they need to manage their businesses. The
changes expand the number of early morning, morning and afternoon commit times UPS offers for urgent
deliveries to and from cities throughout the world.
We classify our service as export (packages that cross national borders) and domestic (packages that stay
within a single country’s boundaries). We have a portfolio of domestic services in 23 major countries throughout
the world.
The Trade Direct portfolio of ocean and air services integrates our small package and supply chain solutions
capabilities to provide additional value to our international customers. In essence, the Trade Direct service
consolidates individually labeled packages or pallets into one movement across borders. When the goods arrive
in the destination country, packages are deconsolidated and entered into the UPS system for delivery, often
eliminating the receiving, sorting and handling necessary in distribution centers. This service significantly cuts
the supply chain cycle from point of origin to consignee. It also provides our customers with faster time to
market, reduced costs, increased visibility and better management of their global supply chain. In 2006, we
completed the rollout of Trade Direct air and ocean services to facilitate export shipments from the U.S. and
Canada to Europe, and introduced Trade Direct service inbound to Japan. Previously in 2005, we had launched
Trade Direct services outbound from Europe to the U.S., as well as inbound from Asia to Europe.
Mexico and Canada are also important to our international business. We developed the UPS Trade DirectSM
Cross Border service to manage package movements between the U.S. and these countries. This service
combines our small package, freight and brokerage capabilities to create an integrated, streamlined and
economical door-to-door solution for customers with complex cross-border distribution needs. We are also the
only carrier to offer guaranteed 8:00 a.m. next day delivery to most major metropolitan cities in Canada.
Starting on January 2, 2007, UPS introduced UPS Standard service support for the shipping of dangerous
goods / hazardous materials, becoming the only carrier to offer a small package ground service for dangerous
goods between Canada and the United States.
Supply Chain & Freight Services. UPS Supply Chain Solutions, which comprises our freight forwarding
and logistics businesses, meets customers’ supply chain needs by selecting the most appropriate solution from a
portfolio of over 60 services. Among these are:
•Transportation and Freight Forwarding: air, ocean, rail and ground freight for all size shipments
utilizing UPS and other carriers, and multimodal transportation network management.
•Logistics and Distribution: supply chain management, distribution center design, planning and
management, order fulfillment, inventory management, receiving and shipping, service parts logistics,
reverse logistics and cross docking.
•International Trade Management: freight forwarding, full-service customs brokerage and international
trade consulting.
•Consulting Services: strategic supply chain design and re-engineering.
Asset-based lending, global trade finance and export-import lending services are available through UPS
CapitalSM.
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