UPS 2014 Annual Report Download - page 16

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When UPS My Choice members will not be home to accept a delivery, they can redirect packages to UPS Access Point
locations. UPS Access Points are convenient locations - such as The UPS Store® and other local businesses - that offer easy
package drop-off and pickup. With evening and weekend hours, UPS Access Point locations fit consumers’ schedules and
enable UPS to get packages delivered faster. Shippers in 50 origin countries and territories can ship directly to UPS Access
Point locations in 12 destination countries, giving shippers and consignees greater control over package deliveries. Our
integrated UPS Access Point network in Europe now has nearly 14,000 locations across nine countries with the 2014 additions
of Poland and Italy. We also expanded into North America to include locations in Canada, Mexico and the United States. By
the end of 2015, we expect to have more than 20,000 locations worldwide. This move enhances our cross-border e-commerce
offerings for retailers, while increasing choice for their customers, who can opt to pick up or drop off their parcels at retail
locations that are convenient to them.
In 2014, UPS announced the purchase of i-parcel, LLC. This new offering focuses on innovative international e-
commerce and logistics. The combination of UPS and i-parcel yields a global e-commerce solution that further strengthens our
global business-to-consumer capabilities. This solution enables merchants to connect to over 100 million global shoppers by
providing an integrated web platform, creating a localized look and feel for international shoppers. The technology empowers
merchants to instantly localize their shopping cart value and provide a seamless shopping experience for international
customers. This solution serves retail shoppers in over 100 countries and includes local currency options, fully-landed prices,
and fully trackable, end-to-end delivery services.
Technology
Technology forms the foundation of our reliability and allows us to enhance the customer experience. Technology
delivers value to our customers and returns to our shareowners. Recent developments that improve our operational efficiency,
flexibility, reliability and customer experience include:
• Continuing rollout of telematics to our international delivery fleet. We have completed the deployment of telematics to
our domestic small package, freight forwarding and ground freight fleets. Telematics helps UPS determine a truck’s
performance and condition by capturing data on more than 200 related elements, including speed, RPM, oil pressure,
seat belt use, number of times the vehicle 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. Additionally,
customers experience more consistent pickup times and more reliable deliveries, thereby enhancing their profitability
and competitiveness. By the end of 2014, telematics had been installed in over 82,000 vehicles.
• Implementing our On Road Integrated Optimization and Navigation system (“ORION”), which employs advanced
algorithms to determine the optimal route for each delivery while meeting service commitments. By the end of 2014,
ORION was deployed to over 23,000 drivers.
• Converting to keyless entry, which enables drivers to remotely turn the engine off with a button that will unlock the
bulkhead door at the same time. Keyless entry is installed on all package cars in the U.S. and Canada.
• 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. NGSS
is deployed to 285 sites globally and 64 additional sites are under evaluation for 2015.
We bring industry-leading UPS technology to our customers who, in turn, realize increased productivity, greater control
of their supply chains and improved customer experience when they integrate with our systems. Customers benefit through
offerings such as:
Shipping
WorldShip™, which is UPS’s flagship desktop shipping application, provides middle market and large customers with
robust shipping capabilities. Customers can create custom labels, set up shipment alerts, create and upload customs
documentation, track and export shipments, create reports and integrate with their enterprise resource planning and accounting
systems to streamline shipping with real-time connectivity.
UPS marketplace shipping, which integrates www.ups.com with eBay® and Amazon®, allows marketplace sellers to
easily ship their orders via www.ups.com or WorldShip. UPS marketplace shipping provides simplified shipment processing,
access to order and shipment history, automatically updates the marketplace with tracking information and provides access to
multiple payment options, including PayPal™.