UPS 2010 Annual Report Download - page 16

Supply chains are becoming increasingly complex. Many of our customers, large and small, have
outsourced all or part of their supply chains to streamline and gain efficiencies, to improve service, to support
new business models and to strengthen their balance sheets.
This increasing complexity creates demand for a global service offering that incorporates transportation,
distribution and international trade and brokerage services with financial and information services. We can meet
that demand because:
• We manage supply chains in over 195 countries and territories, with approximately 31 million square
feet of distribution space worldwide.
• We focus on supply chain optimization, freight forwarding, international trade and brokerage services
for our customers worldwide, which include a broad range of transportation solutions including air,
ocean and ground freight.
• We provide information technology systems and distribution facilities adapted to the unique supply
chains of specific industries such as healthcare, technology and consumer/retail. We call these
“configurable solutions.” In a configurable solution, multiple customers share standardized information
technology systems and processes as well as a common network of assets. A configurable solution is
repeatable for multiple customers and has a package transportation component. For example, we have a
well developed supply chain management capability for the healthcare sector that meets all regulatory
and compliance requirements.
• We offer a portfolio of financial services that provides customers with short-term working capital,
government guaranteed lending, global trade financing, credit cards and export financing.
UPS Freight is an LTL service, which offers a full range of regional, inter-regional and long-haul LTL
capabilities in all 50 states, Canada, Puerto Rico, Guam, the Virgin Islands and Mexico. This business also offers
a TL service. UPS Freight provides services through a network of owned and leased service centers and carrier
partnerships.
Our growth strategy is to increase the number of customers benefiting from configurable supply chain
solutions, particularly in the healthcare, technology, and retail sectors, and to increase the amount of small
package transportation from these customers. We intend to leverage our small package and freight customers
through cross-selling the full complement of UPS services.
Products and Services
Our goal is to provide our customers with easy-to-use products and services. We seek to streamline their
shipment processing and integrate critical transportation information into their own business processes, helping
them create supply chain efficiencies, better serve their customers and improve their cash flows. These products
and services support LTL and air freight shipments, as well as small package transportation. UPS offers a variety
of technology solutions for automated shipping, visibility and billing. We believe we have the most
comprehensive suite of such services in the industry.
Global Small Package. Our global small package portfolio consists of a spectrum of export and domestic
services. Export services are those provided for packages crossing a country’s borders, while domestic services
are for packages that stay within the borders of a single country. We provide domestic express services in 55
countries outside the United States. This portfolio includes guaranteed delivery options to major cities around the
world. We handle packages that weigh up to 150 pounds and are up to 165 inches in combined length and girth.
We offer same-day pickup of air and ground packages. We also offer worldwide customs clearance service for
any mode of transportation.
Additional products that provide enhanced shipping, visibility, billing and return services are available to
customers who require customized package solutions.
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