UPS 2015 Annual Report Download - page 20

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Denmark, France, Germany, Italy, Mexico, Netherlands, Poland, Puerto Rico, Spain, Sweden, Switzerland, the United
Kingdom and the United States. The UPS Mobile App includes on-the-go access to UPS My Choice®, which now has
over 22 million members around the world.
Supply Chain & Freight Reporting Segment
The Supply Chain & Freight reporting segment consists of our forwarding and logistics services, truckload freight
brokerage, UPS Freight and our financial offerings through UPS Capital. Supply chain complexity creates demand for a global
service offering that incorporates transportation, distribution, and international trade and brokerage services, with
complementary financial and information services. We meet this demand by offering a broad array of supply chain services in
over 195 countries and territories.
In 2015, we continued to invest in our global logistics network by adding an additional two million square feet of
warehouse space in the United States, Canada and Western Europe. This follows our 2014 facility expansions in several key
emerging markets including Brazil and China where the demand for outsourced value-added warehousing and logistics services
continues to grow.
Freight Forwarding
We are one of the largest U.S. domestic air freight carriers and among the top international air freight forwarders globally.
We offer a portfolio of guaranteed and non-guaranteed global air freight services. Additionally, as one of the world’s leading
non-vessel operating common carriers, we also provide ocean freight full-container load, less-than-container load and multi-
modal transportation services between most major ports around the world.
Truckload Freight Brokerage (Coyote)
In 2015, we acquired Coyote Logistics, a U.S.-based truckload freight brokerage company. The acquisition added large
scale truckload freight brokerage and other transportation management services to our Supply Chain & Freight reporting
segment. In addition, we expect to benefit from synergies in purchased transportation, backhaul utilization, cross-selling to
customers, as well as technology systems and industry best practices.
Logistics and Distribution
UPS Logistics offers the following services:
• Distribution Services: Our comprehensive distribution services are provided through a global network of distribution
centers that manage the flow of goods from receiving to storage and order processing to shipment. We also provide
specialized services to streamline supply chains in the healthcare, high tech, retail, industrial manufacturing and
aerospace industries. Together, these services allow companies to save time and money by minimizing capital
investment and positioning products closer to their customers.
• Post Sales: Post Sales services support goods after they have been delivered or installed in the field. The four core
service offerings within Post Sales include: (1) Critical Parts Fulfillment; (2) Reverse Logistics; (3) Test, Repair, and
Refurbish and (4) Network and Parts Planning. We leverage our global distribution network of over 950 field stocking
locations to ensure that the right type and quantity of our customers’ stock is in the right locations to meet the needs of
their end-customers. These solutions allow our customers to maximize service to their end-customers while reducing
costs.
• UPS Mail Innovations: UPS Mail Innovations offers an efficient, cost-effective method for sending lightweight parcels
and flat mail to global addresses from the U.S. We pick up customers’ domestic and international mail, and then sort,
post, manifest and expedite the secured mail containers to the destination postal service for last-mile delivery. In 2015,
we launched UPS Mail Innovations Returns, an easy-to-use postal solution that combines the convenience of mailbox
drop-off with the best-in-class speed, reliability and tracking of the UPS Mail Innovations network. Consumers can
use their mailboxes to return lightweight parcels and the packages will flow through the UPS Mail Innovations
network for delivery back to the shippers. UPS Mail Innovations Returns rounds out the industry-leading UPS Returns
portfolio by giving consumers convenient postal access for returning lightweight shipments.
• UPS Express Critical: UPS Express Critical provides a broad range of urgent global transportation options designed to
complement UPS's core services and fill the gaps for late cut-offs, weekends and holidays. UPS Express Critical
expanded its capabilities into Mexico in 2015. The initial time-critical service solutions offered for volume between
the U.S. and Mexico as well as intra-Mexico are Next Flight Out, Charter, Hand Carry and Surface for lightweight to
heavyweight shipments.