UPS 2007 Annual Report Download - page 19

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Georgia
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Hong Kong Long Beach
Rotterdam
London
Chicago
Los Angeles
Netherlands
Naperville
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Duesseldorf
Beijing
Origin
Shipper
Export
Customs
Origin
Dray
Line HaulImport
Customs
Gateway
Freight
Station
Load Unload
End
Customer
Terminal
Chicago
Cologne
Origin
Freight
Station
Terminal Port of
Discharge
Freight Station
Destination
Dray
Local
Delivery
Local
Pickup
Present
Past
Asia
Mexico
CE Europe
Vietnam
luaHeniLreppihSnigirO Consolidation
Local Pickup
Atlanta Chicago
Deconsolidation
Naperville
End Customer
Local
Delivery
Diagram 1. The Changing Nature of the Supply Chain
This increasing complexity creates demand for a global service offering that incorporates transportation,
distribution and international trade services with financial and information services. We believe that we can
capitalize on this opportunity because:
• We manage supply chains in over 175 countries and territories, with about 35 million square feet of
distribution space worldwide.
• We focus on supply chain optimization, freight forwarding, international trade services and
management-based solutions for our customers rather than solely on more traditional asset-based
logistics such as warehouses and vehicle fleets.
• We provide a broad range of transportation solutions to customers worldwide, including air, ocean and
ground freight, as well as customs brokerage, and trade and materials management.
• We provide service, information technology systems and distribution facilities adapted to the unique
supply chains of specific industries such as healthcare, technology, and consumer/retail. We call this
“configurable solutions.” In a configurable solution, multiple customers share standardized IT systems
and processes as well as a common network of assets. A configurable solution is repeatable for
multiple customers and has a transportation component.
• We offer a portfolio of financial services that provides customers with short-term and long-term
financing, secured lending, working capital, government guaranteed lending, letters of credit, global
trade financing, credit cards and equipment leasing.
Our growth strategy is to increase the number of customers benefiting from configurable supply chain
solutions and to increase the amount of small package transportation from these customers. We intend to
leverage our small package and freight customers through cross-selling the full complement of UPS services.
Products and Services
Our goal is to provide our customers with easy-to-use products and services. We seek to streamline their
shipment processing and integrate critical transportation information into their own business processes, helping
them create supply chain efficiencies, better serve their customers and improve their cash flows. These products
and services support LTL and air freight shipments, as well as small package transportation. UPS offers a variety
of technology solutions for automated shipping, visibility and billing. We believe we have the most
comprehensive suite of such services in the industry.
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