UPS 2008 Annual Report Download - page 15

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Georgia
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Los Angeles
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Origin
Shipper
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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 package 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.
UPS Freight is an LTL service, which offers a full range of regional, inter-regional and long-haul LTL
capabilities in all 50 states, Canada, Puerto Rico, Guam, the Virgin Islands and Mexico. This business also offers
a TL service.
Our growth strategy is to increase the number of customers benefiting from repeatable supply chain
solutions, particularly in the healthcare, high tech and retail sectors, 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.
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