UPS 2014 Annual Report Download - page 24

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• Safety Education and Training. Employees who are healthy and well-trained in proper methods are more safe and
efficient in performing their jobs. Our approach starts with training the trainer. All trainers are certified to ensure that
they have the skills and motivation to effectively instruct new employees. All new employees receive safety training
during orientation and in the work area. In addition, each new driver receives extensive classroom and online
instruction, as well as on-road training.
Other components to ensure the safety of our people and fleet include:
• Wellness. We have a "Five Being Habits" wellness program that turns health and wellness knowledge into actionable
measures. These habits are designed to enable employees and their families to take positive steps toward healthy
lifestyles.
• Recognition. We have a well-defined safe driving honor plan to recognize our drivers when they achieve accident-free
milestones. We have more than 7,200 drivers enshrined in our coveted Circle of Honor for drivers who have driven 25
years or more without an avoidable auto crash.
• Preventive Maintenance. We have a comprehensive Preventive Maintenance Program to ensure the safety of our fleet.
Our fleet is managed and monitored electronically to ensure that each vehicle is serviced at a specific time to prevent
malfunction or breakdown.
Competition
UPS is a global leader in logistics. We offer a broad array of services in the package and freight delivery industry and,
therefore, compete with many different local, regional, national and international carriers. Our competitors include worldwide
postal services, various motor carriers, express companies, freight forwarders, air couriers and others. Through our supply
chain service offerings, we compete with a number of providers in the supply chain, financial services and information
technology industries.
Competitive Strengths
Our competitive strengths include:
Global Network. We believe that our integrated global ground and air network is the most extensive in the industry. We
provide all types of package service (air, ground, domestic, international, commercial and residential) through a single pickup
and delivery service network. We also have extensive air freight, ocean freight, ground freight and logistics networks that
provide additional capabilities in the global transportation and logistics market.
Our sophisticated engineering systems allow us to optimize our network efficiency and asset utilization on a daily basis.
This unique, integrated global business model creates consistent and superior returns.
Global Presence. UPS serves more than 220 countries and territories around the world. We have a significant presence
in all of the world’s major economies.
Leading-edge Technology. We are a global leader in developing technology that helps our customers optimize their
shipping and logistics business processes to lower costs, improve service and increase efficiency.
Technology powers virtually every service we offer and every operation we perform. Our technology offerings are driven
by our customers’ needs. We offer a variety of online service options that enable our customers to integrate UPS functionality
into their own businesses not only to send, manage and track their shipments conveniently, but also to provide their customers
with better information services. We provide the infrastructure for an Internet presence that extends to tens of thousands of
customers who have integrated UPS tools directly into their own websites.
Broad Portfolio of Services. Our portfolio of services enables customers to choose the delivery option that is most
appropriate for their requirements. Increasingly, our customers benefit from business solutions that integrate many UPS
services in addition to package delivery. For example, our supply chain services—such as freight forwarding, customs
brokerage, order fulfillment and returns management—help improve the efficiency of the supply chain management process.
Customer Relationships. We focus on building and maintaining long-term customer relationships. We serve 1.6 million
pickup customers and 8.2 million delivery customers daily. Cross-selling small package, supply chain and freight services
across our customer base is an important growth mechanism for UPS.
Brand Equity. We have built a leading and trusted brand that stands for quality service, reliability and product
innovation. The distinctive appearance of our vehicles and the professional courtesy of our drivers are major contributors to our
brand equity.