UPS Supply Chain Solutions
Alpharetta, GA
NYSE:  UPS (United Parcel Service)
Bob Stoffel, President
800-742-5727
www.ups-scs.com

3PL Turnover:

$5.9b                                                                    Parent:  $50b

Service Area:

Tier 1 - Global Supply Chain Manager (Service to 99% of World GDP)

3PL Assets:

35,000 employees
100 warehouses
2,018 tractors, 4,618 trailers
SCS fleet now integrated with UPS Freight for Truckload, LTL and Dedicated Contract Carriage (nearly 8,000 tractors and 125,500 trailers).

Information Systems:

Excellent
TMS – i2 Technologies, Roadnet, TMW
WMS – Operates all major systems

Services:

Air and ocean freight forwarding, customs brokerage, transportation management, warehousing and distribution, supply chain consulting, dedicated contract carriage, trade finance and insurance, equipment leasing, mail services

Industry Focus/Key Customers:

Automotive, computers and electronics, consumer goods, healthcare, retail, telecommunications
Key Customers:  Abbott Labs, DaimlerChrysler, Hitachi, IKON Office Solutions, Nestle, Honeywell, Royal Philips, Seagate, Sony Ericsson, Sprint, Toshiba

Armstrong & Associates’ Evaluation:

UPS and DHL/Exel are the most well known U.S. brand names. Revenues for contract logistics were $1.6 billion in 2007. Net freight forwarding/NVOCC/customs brokerage revenues were $4.3 billion.  UPS SCS had a break-even year in 2007. UPS SCS’ target is 8%, but it will take two to three more years. In the meantime, UPS SCS contributes $2 billion+ per year in package business to its big brother. UPS handles about 700,000 TEUs per year as a freight forwarder. Twelve percent of containers are LCL consolidations; 40% are Asia-U.S. Forwarding revenues are 60% air and 40% ocean. UPS has 1,400 employees involved in customs brokerage: 400 in Aiken, SC; 250 in Cleveland, OH; and 750 in Louisville, KY. UPS has redesigned its supply chain operations to concentrate on high-tech, medical and some retail/consumer goods customers. These operations are highly integrated between value-added and package delivery services. Revenues per employee are $177,000.