UPS 2009 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2009 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.

Page out of 131

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131

Georgia
South Carolina
Arkansas
Hong Kong Long Beach
Rotterdam
London
Chicago
Los Angeles
Netherlands
Naperville
Windsor
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 and brokerage services with financial and information services. We can meet
that demand because:
• We manage supply chains in over 175 countries and territories, with more than 33 million square feet
of distribution space worldwide.
• We focus on supply chain optimization, freight forwarding, international trade and brokerage services
for our customers worldwide, which include a broad range of transportation solutions including air,
ocean and ground freight.
• We provide information technology systems and distribution facilities adapted to the unique supply
chains of specific industries such as healthcare, technology, and consumer/retail. We call these
“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. For example, we have a well
developed supply chain management capability for the healthcare sector that meets all regulatory and
compliance requirements.
• We offer a portfolio of financial services that provides customers with short-term working capital,
government guaranteed lending, global trade financing, credit cards and export financing.
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. UPS Freight provides services through a network of owned and leased service centers and carrier
partnerships.
Our growth strategy is to increase the number of customers benefiting from configurable 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.
4