UPS 2011 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2011 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 148

  • 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
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

We believe that our relations with our employees are good. We periodically survey all our employees to
determine their level of job satisfaction. Areas of concern receive management attention as we strive to keep UPS
the employer of choice among our employees. We consistently receive numerous awards and wide recognition as
an employer-of-choice, resulting in part from our emphasis on diversity and corporate citizenship.
Safety
We promote safety throughout our operations. Our Automotive Fleet Safety Program is built with the
following components:
•Selection. Five out of every six drivers come from our part-time ranks. Therefore, many of our new
drivers are familiar with our philosophies, policies, practices and training programs.
•Training. Training is the cornerstone of our Fleet Safety Program. Our approach starts with training
the trainer. All trainers are certified to ensure that they have the skills and motivation to effectively
train novice drivers. A new driver’s employment includes extensive classroom and online training as
well as on-road training, followed by three safety training rides integrated into his or her training cycle.
•Responsibility. Our operations managers are responsible for their drivers’ safety records. We
investigate every accident. If we determine that an accident could have been prevented, we retrain the
driver.
•Preventive Maintenance. An integral part of our Fleet Safety Program is a comprehensive Preventive
Maintenance Program. Our fleet is tracked electronically to ensure that each vehicle is serviced before
a breakdown or accident is likely to occur.
•Honor Plan. A well-defined safe driver honor plan recognizes and rewards our drivers when they
achieve success. We have over 4,000 drivers who have driven for 25 years or more without an
avoidable accident.
Our workplace safety program is built upon a comprehensive health and safety process. The foundation of
this process is our employee-management health and safety committees. The workplace safety process focuses
on employee conditioning and safety-related habits. Our employee co-chaired health and safety committees
complete comprehensive facility audits and injury analyses, and recommend facility and work process changes.
Competition
We are the largest package delivery company in the world, in terms of both revenue and volume. We offer a
broad array of services in the package and freight delivery industry and, therefore, compete with many different
local, regional, national and international companies. Our competitors include worldwide postal services, various
motor carriers, express companies, freight forwarders, air couriers and others. Through our supply chain service
offerings, we compete with a number of participants in the supply chain, financial services and information
technology industries.
Competitive Strengths
Our competitive strengths include:
Integrated Global Network. We believe that our integrated global ground and air network is the most
extensive in the industry. We handle all levels of service (air, ground, domestic, international, commercial,
residential) through a single pickup and delivery service network.
Our sophisticated engineering systems allow us to optimize our network efficiency and asset utilization on a
daily basis. This unique, integrated global business model creates consistent and superior returns.
10