UPS 2015 Annual Report Download - page 18

6
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 more than 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, which allow 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
We are a leader in time-definite, money-back guaranteed, small package delivery services in the U.S. 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 8:00 AM, 10:30 AM,
noon, end of day, etc.).
• In 2015, we expanded UPS Next Day Air Early (previously known as "UPS Next Day Air Early AM") service to over
4,000 additional ZIP Codes where previously only an end-of-day guarantee was available. This enhancement provides
shippers and their customers the option of an earlier first-of-day delivery with commit times from 8:00 AM to 2:00
PM and enlarged our early delivery coverage. With this expansion, more of our customers can get critical shipments
delivered earlier, across the U.S. and from around the world.
• 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. We deliver more ground packages than any other carrier, with
average daily package volume of 13 million in the U.S., most within one to three business days.
• We also offer 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.
Growth in U.S. online sales, which are estimated to nearly double by 2020, is driving significant growth in package
delivery volume, with a large seasonal spike during peak season beginning at Thanksgiving and lasting through Christmas. In
order to meet the demand and ensure successful peak season operations, we have invested over $1 billion in facility expansions
and equipment modernization since 2014. We continue to make other improvements to effectively manage the seasonal volume
fluctuations associated with peak season:
• Enhancing Cyber Week operations in the U.S. including ground and air pickup and delivery operations on Black
Friday.
• Adding weekend pickup, sort, and delivery operations as needed in the U.S. to smooth out geographical spikes in
volume.
• Utilizing additional aircraft and regional air hubs to add significant capacity to our air network during critical periods.
• Adding new delivery vehicles and trailers to our fleet of 100,000 package cars, vans, tractors, trailers and other
vehicles.