UPS 2015 Annual Report Download - page 16

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4
Logistics Outsourcing
Outsourcing supply chain management is becoming more prevalent, as customers increasingly view professional
management and operation of their supply chains as a strategic advantage. This trend enables companies to focus on what they
do best. We can meet our customers’ needs for outsourced logistics with our global capabilities in customized forwarding,
transportation, warehousing, distribution, delivery and post-sales services. As we move deeper into customers’ supply chains,
we do so with a shared vision on how to best equip our customers with transportation and logistics solutions to better serve
their customers.
Technology
Technology powers logistics, 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:
• Continued rollout of telematics to our international delivery fleet to complement our telematics-enabled U.S. small
package, freight forwarding and freight ground fleets. By the end of 2015, telematics was installed in close to 83,000
vehicles. 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.
• Expanded implementation of 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 2015, ORION was deployed to over 40,000 drivers.
• Accelerated 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 has been deployed in about 300 sites globally.
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 our 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;
multiple payment options, including PayPal™; order and shipment history; and automatic tracking updates.
Tracking and Visibility
UPS Quantum View® can help customers better manage shipments, facilitate tracking, allow for inbound volume
planning, manage third-party shipping costs and automatically notify customers of incoming shipments. With visibility into
transit times and delivery confirmations, customers can speed up their revenue cycle and collect accounts receivables more
quickly while improving customer service.
International Trade Tools
UPS Paperless™ solutions allow customers to self-enroll in UPS Paperless™ Invoice and upload shipping documents.
These solutions enable customers to electronically transmit a commercial invoice, packing list or their own customs documents
when shipping internationally. This eliminates redundant data entry and errors, while reducing customs delays and paper waste.
UPS TradeAbility® tools help customers effectively and confidently manage the movement of goods internationally in a
timely, efficient and compliant manner.