UPS 2014 Annual Report Download - page 20

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• We continue to grow our business organically in Mexico. We are well positioned with freight, domestic, international
and distribution services. In 2014, we opened six new UPS Express centers strategically located across Mexico,
including Mexico City, State of México, Jalisco and Quintana Roo. These new centers are aimed at increasing our
presence among small and medium enterprises and the retail sector.
• 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. Kiala was rebranded as UPS Access Point™ in the UPS portfolio of
services. In 2014, we had nearly 14,000 Access Points in Europe after adding Poland and Italy to the existing seven
countries that include Belgium, Germany, France, the UK, Luxembourg, Spain, and the Netherlands. There are also
more than 700 Access Points in Canada, and in 2014 we added Mexico to the network. We expect to expand to over
20,000 locations throughout Europe and the Americas by the end of 2015.
• During 2014, UPS MyChoice was expanded to 15 additional countries and territories: Canada, Austria, Belgium,
Denmark, France, Germany, Italy, Mexico, the Netherlands, Poland, Puerto Rico, Spain, Sweden, Switzerland and the
United Kingdom.
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. 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 supply chain services in over 195 countries and territories.
We have continued to acquire healthcare logistics companies to expand our transportation and distribution networks in
Europe. In February 2014, we acquired Polar Speed Distribution Limited, a U.K.-based healthcare transportation provider
specializing in refrigerated ground transportation of temperature-sensitive medicines and medical devices. In December 2014,
we announced the acquisition of Poltraf Sp. Z o.o., a Polish-based healthcare logistics company that provides direct distribution
and compliant logistics services to pharmaceutical and medical device customers in the fast-growing healthcare markets of
Central and Eastern Europe (this acquisition is expected to close in the first half of 2015). Both of these acquisitions are part of
our ongoing global growth and investment strategy.
In 2014, we also expanded our global logistics network by more than two million square feet, including 1.5 million
square feet in North America. We added contract logistics facilities in key markets including Brazil, Chile, Netherlands and
China (Beijing). Our continued investment in China brings the total to more than 130 owned and agent contract logistics
facilities, covering 87 cities. These facilities provide distribution and warehousing solutions to shippers who want to reach
customers within China and demonstrate our continued commitment to serving China's emerging middle class. We broadened
our North American Health Care service offering by developing a healthcare-compliant network of 36 Field Stocking Locations
("FSLs"). This capability helps companies quickly send medical devices to hospitals and care facilities, while better managing
inventory costs, regulatory compliance requirements, and end-to-end visibility of shipments.
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
transportation services 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. We provide our customers with customs clearance, trade management
and international trade consulting services. In 2014, UPS expanded its brokerage capabilities in Costa Rica through the
integration of the 2013 acquisition of SEISA Brokerage.
Logistics and Distribution
UPS Logistics offers the following services:
• Distribution Services: Our 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. UPS also provides
specialized services to streamline supply chains in the healthcare, high tech, retail, industrial manufacturing and
aerospace industries. Together, these services allow companies to save time and money by minimizing capital
investment and positioning products closer to their customers.