We are the world's largest package delivery company and a leading global provider
of specialized transportation and logistics services. We were founded in 1907
as a private messenger and delivery service in the Seattle, Washington area. Over
the past 97'years, we have expanded from a small regional parcel delivery service
into a global company.
Our primary business is the time-definite delivery of packages and documents
throughout the United States and in over 200 other countries and territories.
We have established a global transportation infrastructure and developed a comprehensive
portfolio of guaranteed delivery services, and we support these services with
advanced technology. We provide integrated supply chain solutions for major
companies worldwide. We are the industry leader in the delivery of goods purchased
over the Internet.
Global Reach and Scale. We believe that our integrated global ground and air
network is the most extensive in the industry. We operate a ground fleet of
more than 88,000 vehicles, ranging from custom-built delivery vehicles to large
tractors and trailers, and almost 600 airplanes. In the U.S., we estimate that
our integrated door-to-door delivery system carries goods having a value in
excess of 6% of the U.S. gross domestic product, or 2% of the world's GDP, and
we reach all U.S. businesses and residential addresses. We are the ninth largest
airline in North America and eleventh largest in the world. Our primary air
hub is located in Louisville, Kentucky.
We established our first European operation in Germany in 1975 and expanded
it as the single market created by the European Union drove the need for pan-European
delivery services. We believe we have the most comprehensive integrated delivery
and information services portfolio of any carrier in Europe.
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. With among the fastest growing economies in the world, China
and India represent two of our most promising opportunities.
We also are the largest air cargo carrier and a leading logistics provider
in Latin America and the Caribbean. We have formed alliances with a number of
service providers in countries throughout that region.
Our Canadian operations include both intra-Canada and import/export capabilities,
effectively linking two of the world's most significant trading partners'' U.S.
and Canada. We offer delivery to all addresses throughout Canada, and we are
the only carrier to offer guaranteed 8:00'a.m. delivery next day to all major
Canadian cities.
Technology Systems. We continue to be a global leader in merging technology
with business processes to improve operations and provide new or enhanced services
to customers worldwide. We have developed a strong global capability as a mover
of electronic information. We daily transmit approximately 3'million packets
of tracking data via wireless networks, and we currently collect electronic
data on 93% of the packages that move through our U.S. system each day'' more
than any of our competitors.
E-Commerce Capabilities. We are a leading participant in and facilitator of
global e-commerce, which we define as the use of networked computer technology
to facilitate the three flows of commerce: funds, goods and information.
Broad, Flexible Range of Distribution Services. Our portfolio of services enables
customers to choose the delivery option that is most appropriate for their requirements.
All of our delivery service offerings are guaranteed.
Our express air services are integrated with our vast ground delivery system.
This integrated air and ground network enhances efficiency, improves productivity
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.
Customer Relationships. We focus on building and maintaining long-term customer
relationships.
Brand Equity. We have built the leading and most trusted brand in our industry.
Our reputation for quality service, reliability and product innovation is unmatched.
The distinctive appearance of our vehicles and the friendliness and helpfulness
of our drivers are major contributors to our brand equity.
Distinctive People and Culture. We believe that the dedication of our employees
results in large part from our distinctive 'employee-owner' concept. Our employee
stock ownership tradition dates from 1927, when our founders, who believed that
employee stock ownership was a vital foundation for successful business, first
offered stock to employees. To facilitate employee stock ownership, we maintain
several stock-based compensation programs.
The UPS worldwide sales organization includes both our traditional U.S.'domestic
and international small package delivery business and our Supply Chain Solutions
group. Globally, we have 5,700 direct sales resources.
This field sales organization consists primarily of locally based account executives
assigned to our individual operating units. For our largest multi-shipping site
customers, we manage sales through an organization of regionally based account
managers, reporting directly to our corporate office.
Our sales force also includes specialized groups that work together with our
general sales organization to support the sale of e-commerce and customer technology
solutions, international package delivery, LTL and freight transportation, and
warehousing and distribution services.
Our worldwide marketing organization also supports both our traditional U.S.'
domestic and international small package delivery business and our Supply Chain
Solutions group. Our corporate marketing function is engaged in market and customer
research, brand management, rate-making and revenue management policy,
Competition
We are the largest package delivery company in the world, in terms of both
revenue and volume. We offer a broad array of services in the package delivery
industry and, therefore, compete with many different companies and services
on a local, regional, national and international basis. Our competitors include
the postal services of the United States and other nations, various motor carriers,
express companies, freight forwarders, air couriers and others. Our major competitors
include the United States Postal Service, FedEx, DHL Worldwide Express, Deutsche
Post and TNT Post Group.
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