UPS 2012 Annual Report Download - page 18

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Additional International highlights include the following:
• Since our 2009 acquisition of Unsped Paket Servisi San ve Ticaret A.S. in Turkey, we have seen strong export and
domestic growth in that country.
• In South and Central America, we benefit from the strong regional economy. Our offerings include express package
delivery in major cities as well as distribution and forwarding.
• We continue to grow our business organically in Mexico. We are well positioned with freight, domestic, international
and distribution services.
• In February 2012, we broadened our European business-to-consumer service portfolio by acquiring Kiala S.A., a
Belgium-based developer of a platform that enables e-commerce retailers to offer consumers the option of having
goods delivered to a convenient retail location.
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 one of the largest U.S. domestic air freight carriers and among the top 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. With this service, 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.