UPS 2013 Annual Report Download - page 5

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our commitments. We are making the necessary investments
and operational changes to improve service and deliver the
excellence customers expect in 2014 and beyond.
Operations Review
Global Package Operations
In last year’s annual report, I outlined the four transformative
strategies that guide our vision of the future:
• Deploying technology-enabled operations
• Providing unique and industry-speci c customer solutions
• Expanding our global network
• Serving the needs of end consumers around the world
UPS made measurable progress on each of these fronts. The
growth in e-commerce, coupled with our leading position in
fast-growing segments like healthcare, enabled us to generate
a 3.9 percent increase in total volume, to 4.27 billion packages
during 2013. However, higher demand for lightweight, low
yielding solutions, led to a 0.6 percent dip in average revenue
per package during 2013.
UPS continues to invest heavily in our global network.
In November, we completed the expansion of our air hub
in Cologne, Germany, which increased capacity there by
70 percent. The Cologne project was part of $500 million
in scheduled facility expansions across Europe, Latin America
and Asia over a two-year period.
Our management team is focused on optimizing the perfor-
mance of our global network. I believe these investments will
enable UPS to build on our reputation for reliability and service.
U.S. Domestic
Our U.S. Domestic segment recorded a 3.7 percent rise in
revenue, as the online shopping boom increased demand for
our omni-channel solutions. By working closely with retailers,
we enable them to ful ll online orders right from their stores.
03
62%
22%
16%
Revenue by Segment
percent
U.S. Domestic Package
International Package
Supply Chain & Freight
75%
25%
Revenue by Geography
percent
U.S.
International
In November,
we completed the
expansion of our air hub
in Cologne, Germany,
which increased capacity
there by 70 percent.