UPS 2011 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 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

Both of these solutions leverage our extensive network,
which includes UPS’s retail presence of almost 5,000
locations of The UPS Store®.
Transforming
We continue to refine and
develop the UPS business model
to capitalize on new opportunities
for growth. Great companies adapt
to the changing business world,
and our tradition of transformation
dates back more than a century.
In 2011, UPS made major
investments in our healthcare
capabilities. We added 1.6 million
square feet of healthcare com-
pliant warehouse space. UPS at
year-end had more than 5 million
square feet for healthcare in 33
facilities around the globe. We plan
to add four new facilities in 2012.
Also in 2011, UPS acquired Pieffe,
a health care distribution company
in Italy—further adding to our
global capabilities.
Technology powers logistics and makes our business
more productive and efficient. UPS will save more than
$200 million annually just from the following three
technology initiatives:
 • Newkeyless entry systems automatically
enable the ignition, unlock the doors, and
open the bulkhead door.
• Telematics sensor technology gathers
and analyzes data from our vehicles to
improve safety, increase efficiency, and
enhance customer service. Also we use
much less fuel and reduce emissions.
• Next Generation Small Sort (NGSS)
improves efficiency of our small sort
operations by eliminating the memoriza-
tion of ZIP codes.
Additionally, with the Network Planning
Tool (NPT)andtheOn Road Integrated
Optimization and Navigation(ORION),
UPS will link its operations technology with
advanced analytics.
Last, but not least, there’s our industry-leading
sustainability program. Our efforts to
improve the fuel efficiency of our air and
ground fleet continues to provide benefits
to our operations while also reducing the
impact on the environment.
04
Supply Chain and Freight
2011 Revenue by Segment
U.S. Domestic Package
International Package
60%
17%
23%
2011 Revenue by Geography
U.S.
International
74%
26%
UPS My Choice: This ground-breaking offering
allows the receivers of UPS shipments to control
aspects of the delivery.
innovation
* See Items Affecting Comparability in Management’s Discussion and Analysis of Financial Condition and Results of Operations under Part II of our Form 10-K, included as
part of this annual report, for explanations of adjustments.