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UPS: Industry Leader for Third Year in a Row

UPS: Industry Leader for Third Year in a Row

Industry issues such as leadership, ethics, worker well-being, job creation, local community support, customer treatment and environmental impact are some examples of what “JUST 100” annual list identifies for companies that make the cut. For the third year in a row, UPS has made the list and was recognized as a leader within the transportation industry.

“We are humbled to be named one of America’s most JUST companies for the third year in a row,” said Tamara Barker, UPS’s chief sustainability officer and vice president of environmental affairs. “UPS and its team remain devoted to our sustainability and charitable goals that help us serve our communities and work toward a greater good.”

The results come from a comprehensive survey conducted on the country’s top 1,000 publicly-traded and the public attitudes sparked from corporate patterns.

Among the three consecutive recognitions from Forbes, UPS received four additional company acknowledgements from the Dow Jones Sustainability World Index, CR Magazine, Civic 50 list, and Barron’s inaugural list for the 100 Most Sustainable Companies, all in the same year.

UPS is projecting the successful completion of 20 million volunteer hours by 2020, as originally planned. Additionally, the company is an active participant in reducing GHG emissions as they strive towards a 12 percent decrease by 2025 for global ground operations.

Source: EIN Presswire 

 

UPS Offers Strategy Initiatives for Success

Global shipping company UPS offers three strategic tips to remember when re-evaluating changes and improvements needed for warehouse and distribution efforts. The first is to “Break the Inertia” through an open-minded look into the current state of operations. Just because operations are running up to par does not mean there isn’t room for improvement and efficiencies. Again, they warn to proceed with caution. It’s a fine balance between evaluating what’s not working and applying a new strategy and not going idle.

“Very often we see companies overhaul their operations in response to some kind of catalyst,” said Nancy Pagely, UPS development director. “But making changes without a clear strategy increases the chances of taking a costly wrong turn.”

The second strategy offered focuses on the importance of the customer and providing a sense of “ease, convenience and flexibility.”

Bhadra states that, “It’s really critical that operators set aside the knowledge they’ve amassed on customers in order to get a fresh look at what’s going on out there. It takes unconventional thinking and a broader set of collaborators to make smart changes.”

The final piece of advice is taking an honest assessment of your company and don’t let the fear of failure determine your company’s next steps.

“Understanding where you want to be can reduce the number of doors to look behind before making decisions and investments,” explains UPS Customer Solutions consultant Mark Modesti. “As long as you plant a flag and build a dynamic roadmap that lets you adapt as needed, you’ll be ahead of the game.”

 

Source: UPS

UPS Supply Chain rescues a UPS still struggling with costs

Supply Chain and Freight came to the rescue for UPS in the third quarter, with a strong performance in road freight and forwarding counter-balancing profitability problems elsewhere.

For the whole company consolidated revenue increased by 7.9% year-on-year, whilst stripping-out currency fluctuations, it was up 8.4% at $17.444bn. Net Income was up 19.8% at $1.508bn, a number slightly flattered by lower income tax costs. Operating profit was only 0.7% higher.

The core US Domestic Package revenue was good at $10.437bn, an 8.1% rise. Here the underlying picture was of strong demand from internet retailing in particular enabling a better pricing environment. However operating profit fell in the third quarter possibly influenced by higher transport subcontractor costs, which for the whole group climbed by 13.6% compared to the same period last year.

International Express was not quite as strong in revenue terms, up 3% at $3.47bn. Volumes fell slightly over the quarter by 0.2% but this was balanced by higher average revenue per package. However, fuel costs and currency effects conspired to drive down operating profits by 11% to $536m.

A much better performance was recorded by the Supply Chain and Freight business. It saw profits sharply higher at $242m, a 24.1% increase on revenue up 12%. In UPS Forwarding and UPS Freight a virtuous circle of higher volumes and better utilization improved margins as did better quality products. Presumably this must have been in the face of higher underlying transport costs.

This quarter’s numbers were roughly aligned with the trends seen through the rest of the year, that of good revenue growth but difficulties with the cost base. This is especially the case in the Domestic Express segment, for the first nine months revenue is up 7.2% but operating profit is down 17.8%.

The pre-Christmas period will be key to UPS in terms of whether it can match capacity to demand in both in terms of volume and cost effectiveness. UPS needs get on top of the problem of a cost base that is increasing faster than the market. A company with the resources of UPS ought to be able to achieve this.

Source:  ti-insight.com

UPS to Invest $2B in Europe, Asia and the Americas

Atlanta, GA – UPS has committed to investing $2 billion over the next five years in an expansion to its global infrastructure in Europe, Asia and the Americas.

The global package delivery giant announced its new investment strategy at a recent investors’ meeting where it disclosed intentions to inject 4.5 to 5 percent of its annual revenue from 2015 to 2019 in building its network in the named regions in a major effort to “improve the profitability of its e-commerce deliveries.”

According to a statement released by the company, UPS intends to grow total revenue by 5-7 percent per year, and operating profit by 8-11 percent per year. It wants to increase its US domestic revenue by 5-6 percent every year through 2019, and operating profit by 8-10 percent annually.

“UPS is a strong company that has proven its ability to adapt,” said UPS CEO David Abney.

Customer needs, he said, “continue to change, and we’re changing with them by offering new and innovative solutions.”

The delivery firm expects online shopping to account for 51 percent of its U.S. domestic volume by 2019, up from 46 percent this year.

UPS says its On-Road Integrated Optimization and Navigation (ORION) system should reduce an average of seven to eight miles traveled from daily driver routes.

The company is attempting to make lightweight e-commerce packages more lucrative, boosting delivery density by using the new ORION route software and by pricing items by dimension as well as weight.

Technology-optimizing routes and improved planning would translate into lower costs per package, UPS said, adding that ORION is already in use by 22,000 UPS drivers and its full deployment should be complete by 2016.

UPS Signs Lease for New Facility at AllianceTexas

Fort Worth, Texas – Hillwood Properties, developer of the 18,000-acre master-planned, mixed-use AllianceTexas development has secured a new lease from UPS for almost 500,000 square feet in Fort Worth’s Alliance Gateway I.

UPS chose this new 27-acre site due to its proximity to customers and ready access to major roadways and Fort Worth Alliance Airport (AFW), the world’s first industrial airport, the company said.

The new distribution center is expected to open in November and will serve UPS customers in the North Tarrant and South Denton counties.  This new facility will bring 300 package handler jobs and over 50 tractor trailer driver positions to the area.

“This state-of-the-art UPS facility significantly enhances the logistics platform currently offered at AllianceTexas, especially as e-commerce companies continue to locate their fulfillment centers here,” said Tony Creme, vice president of Hillwood Properties, which manages the AllianceTexas development. “UPS has been an integral, valued member of the AllianceTexas project for many years, and we look forward to their continued growth and success with this new location.”

The master-planned AllianceTexas community covers 18,000-acres and is home to over 370 companies, which have developed more than 37 million square feet and created over 37,000 jobs.

The community also includes over one million square feet of retail, restaurant, and entertainment components integrated with a variety of single-family and luxury apartment home options.

09/15/2014