UPS 2005 Annual Report Download - page 17

In Europe, where we have operated for nearly 30 years, we maintain a well developed air and ground
network, much like that in the U.S. We believe we have the most comprehensive integrated delivery and
information services portfolio of any carrier in Europe. In other regions of the world, we rely on both our own
and local service providers’ capabilities to meet our service commitments.
Through more than two dozen alliances with Asian delivery companies that supplement company-owned
operations, we currently serve more than 40 Asia Pacific countries and territories. Two of the fastest growing
economies in the world, China and India, are among our most promising opportunities.
We are also the largest air cargo carrier and a leading logistics provider in Latin America and the Caribbean.
Our Canadian operations include both intra-Canada and import/export capabilities. We deliver to all
addresses throughout Canada. We are also the only carrier to offer guaranteed 8:00 a.m. next day delivery to
most major metropolitan cities in Canada.
Technology. We are a global leader in developing technology that improves our customers’ business
processes. We have a strong global capability as a mover of electronic information. We currently collect
electronic data on 97% of the packages that move through our U.S. system each day – more than any of our
competitors.
In 2003 we announced plans to re-engineer our package pick-up and delivery processes. Over several years,
beginning in 2003, we expect to invest approximately $600 million to simplify and optimize these processes,
which we believe will result in gains in efficiency, reliability and flexibility. Once the new technology is
deployed in our package sorting facilities, we anticipate achieving savings through productivity improvements as
well as in reduced fuel usage. By the end of 2005 we had deployed this technology for use by almost 61% of our
drivers.
Technology powers virtually every service we offer and every operation we perform. Our technology
initiatives are driven by our customers’ needs. We offer a variety of on-line service options that enable our
customers to integrate UPS functionality into their own businesses not only to conveniently send, manage and
track their shipments, but 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 web sites.
E-Commerce Capabilities. We are a leading facilitator of global e-commerce. We enable our customers
around the world to thrive in this environment by providing a portfolio of technology solutions that streamlines
their shipment processing and integrates critical transportation information into their business applications.
Broad, Flexible Range of Services and Integrated Solutions. Our portfolio of services enables customers to
choose the delivery option that is most appropriate for their requirements. Substantially all of our U.S. small
package delivery services are guaranteed.
Our express air services are integrated with our vast ground delivery system – one system handling all
products. This integrated air and ground network enhances efficiency, improves productivity and asset
utilization, and provides us with the flexibility to transport packages using the most reliable and cost-effective
transportation mode or combination of modes. 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 – by far the best in our industry.
Increasingly, our customers benefit from business solutions that integrate many UPS services in addition to
package delivery. We offer over 60 supply chain services – such as freight forwarding, customs brokerage, order
fulfillment, and returns management – that help improve efficiency of the supply chain management process.
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