UPS 2011 Annual Report Download - page 19

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Supply Chain & Freight Reporting Segment
The Supply Chain & Freight segment consists of our forwarding and logistics services, our UPS Freight
business, and our financial offerings through UPS Capital. We manage supply chains in over 195 countries and
territories, with approximately 35 million square feet of distribution space worldwide. Supply chain complexity
creates demand for a global service offering that incorporates transportation, distribution and international trade
and brokerage services, with financial and information services. We meet this demand by offering a broad array
of services, which are described below.
The 2011 acquisition of Italy-based Pieffe Group (“Pieffe”) supports our global health care strategy, which
has seen us make investments to better serve our growing customer base in the pharmaceutical, biotech and
medical device industries. Previously family-owned, Pieffe is a pharmaceutical logistics business with more than
35 years of experience offering high-quality storage, distribution and cold chain solutions to some of the world’s
leading pharmaceutical brands.
Freight Forwarding
UPS is the second largest U.S. domestic air freight carrier and among the top six international air freight
forwarders globally. UPS offers a portfolio of guaranteed and non-guaranteed global air freight services.
Additionally, as one of the world’s leading non-vessel operating common carriers, UPS also provides ocean
freight full-container load and less-than container load shipments between most major ports around the world.
Customs Brokerage
UPS is among the world’s largest customs brokers by both the number of shipments processed annually and
by the number of dedicated brokerage employees worldwide. With decades of customs brokerage experience, we
provide our customers with customs clearance, trade management and international trade consulting services.
Logistics and Distribution
UPS Logistics offers the following:
• Distribution Services: UPS’s comprehensive distribution services are provided through a global
network of distribution centers that manage the flow of goods from receiving to storage and order
processing to shipment, allowing companies to save time and money by minimizing their capital
investment and positioning products closer to their customers.
• Post Sales: Post Sales services support goods after they have been delivered or installed in the field.
The four core service offerings within Post Sales include: 1) Critical Parts Fulfillment; 2) Reverse
Logistics; 3) Test, Repair, and Refurbish; and 4) Network and Parts Planning. We leverage our global
distribution network of 600+ field stocking locations to ensure that the right type and quantity of our
customers’ stock is in the right locations to meet the needs of their end-customers. Our customers are
able to minimize spend and maximize service.
• UPS Mail Innovations: UPS Mail Innovations offers an efficient, cost-effective method for sending
lightweight parcels and flat mail to global addresses from the U.S. We pick up customers’ domestic
and international mail, sort, post, manifest and then expedite the secured mail containers to the
destination postal service for last-mile delivery.
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