UPS 2011 Annual Report Download - page 17

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Global Small Package
UPS’s global small package operations provide time-definite delivery services for express letters,
documents and small packages via air and ground services. We provide domestic delivery services within 56
countries and export services to more than 220 countries and territories around the world. We handle packages
that weigh up to 150 pounds and are up to 165 inches in combined length and girth. All of our package services
are supported by numerous shipping, visibility and billing technologies.
UPS handles all levels of service (air, ground, domestic, international, commercial, residential) through one
global integrated pickup and delivery network. All packages are commingled throughout their journey in our
network, except when necessary to meet their specific service commitments. This enables one UPS driver to pick
up our customers’ shipments, for any of our services, at the same scheduled time, day after day. Compared to
companies with single service network designs, our integrated network uniquely provides operational and capital
efficiencies while being easier on the environment.
Upon request, we offer same-day pickup of air and ground packages. Based on their needs, customers can
schedule pickups for one to five days a week. Additionally, we provide our customers with easy access to UPS,
with over 150,000 domestic and international entry points including: 40,000 drop boxes, 1,000 customer centers,
4,700 independently owned and operated locations of The UPS Store worldwide, 13,000 authorized shipping
outlets and commercial counters, 6,300 alliance locations and 86,300 UPS drivers who can accept packages
provided to them.
With the growth of online shopping, our customers’ needs for efficient and reliable returns have increased.
To this end, we have developed a robust selection of returns services that are available in over 100 countries.
Options vary based on customer needs and country, and range from cost-effective solutions such as UPS Returns,
which simply enables shippers to provide their customers with a return shipping label, to services as specialized
as UPS Returns Exchange. In this new service, the UPS driver simplifies product exchanges by delivering a
replacement item and picking up a return item in the same stop, and assisting with the re-packaging process.
We operate a global ground fleet of approximately 101,000 vehicles, of which our U.S. ground fleet serves
all business and residential zip codes in the contiguous U.S. We operate a global air fleet of 523 aircraft, and we
are one of the largest airlines in the world. Our global air network is centered at our Worldport hub in Louisville,
Kentucky. Worldport sort capacity, currently at 416,000 packages per hour, has expanded over the years due to
volume growth and a centralization effort. This facility is supplemented by our regional U.S. air hubs in
Hartford, Connecticut; Ontario, California; Philadelphia, Pennsylvania; and Rockford, Illinois. This network
design allows for cost-effective package processing in our most technology-enabled facility while enabling us to
use fewer, larger and more fuel-efficient aircraft. Our largest international air hub is in Cologne, Germany, with
other regional international hubs in Miami, Florida; Canada; Hong Kong; Singapore; Taiwan; and China.
U.S. Domestic Package Reporting Segment
UPS is a leader in time-definite, money-back guaranteed, small package delivery services. We offer a full
spectrum of U.S. domestic guaranteed ground and air package transportation services. Depending on the delivery
speed needed, customers can select from a range of guaranteed time and day definite delivery options.
• Customers can select from same day, next day, two day and three day delivery alternatives. Many of
these services offer options that enable customers to specify a time of day cut-off for their delivery
(e.g. by 8:30, 10:30, noon, end of day, etc.)
• Customers can also leverage our extensive ground network to ship using our day-definite guaranteed
ground service that serves every U.S. business and residential address. UPS delivers more ground
packages than any other carrier, with over 11 million ground packages delivered on time every day in
the U.S., most within one to three business days.
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