UPS 2012 Annual Report Download - page 15

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We also continue to invest in health care focused transportation solutions, such as UPS Temperature True. UPS
Temperature True is an air freight solution specifically designed to safeguard temperature-sensitive shipments using a portfolio
of specialized containers with passive, semi-active, or active refrigeration. This service provides door-to-door transportation of
sensitive products in accordance with precise, measurable operating procedures. In 2012, UPS added 400 new UPS
Temperature True international trade lanes. We also launched UPS Temperature True Small Package to provide optimized
packaging solutions to ensure product integrity for customers with smaller format shipments of environmentally-sensitive
products.
We will continue to expand our sector offerings, growing not only our physical and market footprint, but also our
expertise and technology to support industry-specific needs. Our growth strategy is to increase the number of customers
benefiting from these sector solutions and gain their associated small package and freight transportation.
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 serve those who rely on our customers. We integrate our technology for
efficiencies, visibility and control to ensure that we execute as promised.
Retail e-Commerce Growth
Throughout much of the world, e-commerce growth continues to outpace traditional lines of business. We continue to
create new services, supported by UPS technology, that complement the traditional UPS premium home delivery service to
address the needs of e-commerce shippers and receivers (“consignees”). Our offerings span a broad spectrum from cost-
sensitive solutions such as SurePost, for shipments where economy takes precedence over speed, up to feature-rich solutions,
such as our UPS My Choice service that provides consignees with revolutionary visibility and control of their inbound
shipments.
With UPS My Choice, consignees direct the timing and location of their deliveries before a delivery attempt is made.
Premium features include online delivery planners, detailed driver instructions, alternate delivery locations and a two-hour
delivery window. Delivery alerts come via the channel chosen by the consignee—email, SMS text, etc. We strive to give our
customers that ship using UPS My Choice the best delivery experience in the industry—delivery on the first attempt, where and
when their customers want it.
Technology
Technology powers logistics. 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 technology.
Customers benefit through offerings such as:
• UPS Quantum View, which can speed up the revenue cycle (i.e. faster transit times, coupled with confirmation of
delivery, allow shippers to collect accounts receivable more quickly), allow for inbound volume planning, manage
third-party shipping costs, automatically notify customers of incoming shipments, and of course, track shipments and
let the customer react if a specific shipment status changes.
• Flex Global View, which provides customs alerts, supplier key performance indicators and inventory monitoring.
• UPS Paperless Invoice, which enables customers to submit a commercial invoice electronically when shipping
internationally. This eliminates redundant data entry and errors, while reducing customs holds and paper waste.
• UPS Import Control, which gives our customers the ability to initiate their import shipments, define billing terms and
assign accounts to charge, and remove commercial invoices prior to delivery to a third-party.
• UPS Mobile apps, which allow our customers to track, ship and find UPS locations from mobile devices, are among
the top downloaded applications for businesses.
• UPS My Choice, which focuses on the consignee and transforms the residential delivery experience. Receivers direct
the timing and circumstances of their deliveries. This innovative service, which is unmatched in our industry, is
powered by the complex integration of real-time route optimization and other technologies with our delivery network.
We believe that UPS My Choice gives us a substantial lead over the competition.