UPS 2014 Annual Report Download - page 18

6
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 54 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 within 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 each day. Compared to companies with single service network designs, our integrated network uniquely
provides operational and capital efficiencies while being more environmentally-friendly.
We offer same-day pickup of air and ground packages upon request. Customers can schedule pickups for one to five
days a week, based on their specific needs. Additionally, our wholly-owned and partnered global network offers approximately
150,000 entry points where customers can tender a package to us at a location or time convenient to them. This combined
network includes UPS drivers who can accept packages provided to them; UPS drop boxes; UPS Access Point locations; The
UPS Store locations; authorized shipping outlets and commercial counters; alliance locations; and customer centers attached to
UPS facilities. Some of these locations offer a full array of services including pickup, delivery and packing options, while
others are drop-off locations only. We continually look for ways to enhance the customer experience by offering easy access to
UPS.
The growth of online shopping has increased our customers’ needs for efficient and reliable returns, resulting in our
development of a robust selection of returns services that are available in more than 145 countries. Options vary based on
customer needs and country, and range from cost-effective solutions such as UPS Returns, to more-specialized services such as
UPS Returns Exchange. UPS Returns enables shippers to provide their customers with a return shipping label, while UPS
Returns Exchange 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; and Hong Kong. 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.
In the U.S., Worldport is supported by our regional air hubs in Columbia, South Carolina; Dallas, Texas; Ontario,
California; Philadelphia, Pennsylvania; and Rockford, Illinois. This network design allows for cost-effective package
processing in our most technology-enabled facilities while enabling us to use fewer, larger and more fuel-efficient aircraft. Our
U.S. ground fleet serves all business and residential zip codes in the contiguous U.S.
U.S. Domestic Package Reporting Segment
UPS is a leader in time-definite, money-back guaranteed, small package delivery services. We offer a full spectrum of
U.S. domestic guaranteed ground and air package transportation services. Depending on the delivery speed needed, customers
can select from a range of guaranteed time and day-definite delivery options.
• Customers can select from same day, next day, two day and three day delivery alternatives. Many of these services
offer options that enable customers to specify a time-of-day guarantee for their delivery (e.g. by 8:30, 10:30, noon, end
of day, etc.).
• Customers can also leverage our extensive ground network to ship using our day-definite guaranteed ground service
that serves every U.S. business and residential address. UPS delivers more ground packages than any other carrier,
with nearly 13 million ground packages delivered on time every day in the U.S., most within one to three business
days.
• UPS also offers UPS SurePost, an economy residential ground service for customers with non-urgent, lightweight
residential shipments. UPS SurePost is a contractual residential ground service that combines the consistency and
reliability of the UPS Ground network with final delivery often provided by the U.S. Postal Service.