UPS 2012 Annual Report Download - page 16

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Technology, coupled with high-quality UPS employees, forms the foundation of our reliability and allows us to take
customer experience to a higher level. Technology delivers value to our customers and returns to our shareholders. Recent
advancements that evidence further gains in UPS’s operational efficiency, flexibility, reliability and customer experience
include:
• Continuing to rollout telematics to our delivery and tractor-trailer fleet. Telematics helps UPS determine a truck’s
performance and condition by capturing data on more than 200 elements, including speed, RPM, oil pressure, seat belt
use, number of times the truck is placed in reverse and idling time. Together, improved data and driver coaching help
reduce fuel consumption, emissions and maintenance costs, while improving driver safety. Moreover, customers
experience more consistent pickup times and more reliable deliveries, thereby enhancing their profitability and
competitiveness.
• Implementing our On Road Integrated Optimization and Navigation (“ORION”) system, which employs advanced
algorithms to determine the optimal route for each delivery while meeting service commitments.
• Converting our package cars to keyless entry, where drivers will be able to remotely turn the engine off with a button
that will unlock the bulkhead door at the same time.
• Ramping up installations of our Next Generation Small Sort (“NGSS”) technology, which reduces the amount of
memorization required to sort a package, thereby improving productivity and quality. Employees sort packages to bins
tagged with flashing lights, rather than memorizing addresses, allowing us to dramatically reduce training time.
Reporting Segments and Products & Services
As a global leader in logistics, UPS offers a broad range of domestic and export delivery services; the facilitation of
international trade; and the deployment of advanced technology to more efficiently manage the world of business. We seek to
streamline our customers’ shipment processing and integrate critical transportation information into their own business
processes, helping them to create supply chain efficiencies, better serve their customers and improve their cash flows.
Global Small Package
UPS’s global small package operations provide time-definite delivery services for express letters, documents, small
packages and palletized freight 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 as well as palletized shipments weighing greater than 150 pounds. 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 154,000
domestic and international entry points including: 39,100 drop boxes; 2,100 customer centers; 4,700 independently owned and
operated locations of The UPS Store worldwide; 6,700 Kiala locations; 12,400 authorized shipping outlets and commercial
counters; 5,900 alliance locations; and 83,900 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. With 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 one of the largest airlines in the world, with global operations 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. Our European air hub is located in Cologne, Germany, and we maintain Asia-Pacific air hubs in
Shanghai, China; Shenzhen, China; Taipei, Taiwan; Incheon, South Korea; Hong Kong; and Singapore. Our regional air hub in
Canada is located in Hamilton, Ontario, and our regional air hub for Latin America and the Caribbean is in Miami, Florida.