Fundamental Nature of Global Commerce Changingpdf.wri.org/2001summit_upsppt.pdf · 2018. 9. 21. ·...

United Parcel ServicePaul Smith

1

Building New Business Strategieswith Communication and Energy

Technologies

Building New Business StrategiesBuilding New Business Strategieswith Communication and Energywith Communication and Energy

TechnologiesTechnologies

Paul SmithUnited Parcel Service

Paul SmithUnited Parcel Service

Fundamental Nature ofGlobal Commerce ChangingFundamental Nature ofFundamental Nature ofGlobal Commerce ChangingGlobal Commerce Changing


2

• Globalization• Globalization

Two Strong Forces CreatingRevolution in CommerceTwo Strong Forces CreatingTwo Strong Forces CreatingRevolution in CommerceRevolution in Commerce

• Consumer Pull

• Globalization

Two Strong Forces CreatingRevolution in CommerceTwo Strong Forces CreatingTwo Strong Forces CreatingRevolution in CommerceRevolution in Commerce

• Consumer Pull• Consumer Pull


3

LauderdaleLilies.comis Virtual

LauderdaleLilies.comis Virtual

• Owns no nurseries, warehouses,or storefronts

• Partnerships:– Nurseries in Colombia and Costa Rica– United Parcel Service

• Streamlined supply chain has reducedcosts and environmental impacts


4

UPS Driver CapturesDigital SignatureUPS Driver CapturesUPS Driver CapturesDigital SignatureDigital Signature


5

DIAD EnvironmentalImpact

DIAD EnvironmentalDIAD EnvironmentalImpactImpact

Savings per year:Savings per year:59,425,060 sheets of59,425,060 sheets of

paperpaper

Savings per year:Savings per year:5,167 trees5,167 trees

The DematerializationContinuum

The DematerializationThe DematerializationContinuumContinuum

•• UPS UPS OnLine OnLine CourierCourier•• UPS Mail 2000UPS Mail 2000


6

UPS OnLine CourierUPSUPS OnLine OnLine Courier Courier

• Speed• Security• Environmental• Capacity• Control• Cost

Faxing

E-mail

Over-nighting


1 Document Overnight Letter OnLine Courier

Hours to Process .1928 .1374 Cost to Process $4.44 $3.17 Cost to Send $11.00 $2.50 Total Cost $15.44 $5.67

10 Documents Overnight Letter OnLine Courier

Hours to Process .4178 .1374 Cost to Process $9.62 $3.17 Cost to Send $110.00 $25.00 Total Cost $119.62 $28.17 Sources: UPS Industrial Engineering & FedEx 9/99 Service Guide - 8 oz. Letter Region 2Priority Overnight


7

UPS Mail 2000UPS Mail 2000UPS Mail 2000

Local toRegionalsortingfacilities

Regionalto Localsortingfacilities

Local mail carrier sort

United States Postal Service

Mail 2000


8

APPENDIX INFORMATION

Alternative Fuel VehiclesAlternative Fuel Vehicles

The DecarbonizationContinuum

The The DecarbonizationDecarbonizationContinuumContinuum

Alternative Fuel VehiclesAlternative Fuel Vehicles

CNG Electric


9

The UPS FleetTheThe UPS Fleet UPS Fleet

11,300tractors &

59,500 trailers

70,740 packagedelivery vehicles

967 CNG 832 propane13 electric vans

1,390 other LEV

622 aircraft

10 LNG

750 Propane

104

5123 46 52

46 109

66

19 1568

94

5187

967 CNG Vehicles

Alternative Fuel FleetAlternative Fuel FleetAlternative Fuel Fleet

82 Propane


10

Air EmissionsAir EmissionsUPS / Battelle Study

CO

75%

NOx

49%

nmHC

4%

CO2

7%

PM

95%

Fuel Station 1995 / CNG Vehicles 1996

0

2

4

6

8

10

12

Diesel 0.24 2.59 10.7 7.97 0.5 12

CNG 0.012 0.64 5.43 7.4 0.48 8.54

PM CO NOx CO2/100 HC/nmHC MPEG

CNG FuelCNG Fuel

• Safety of using CNG

• Environmental Quality

• Cost comparison

Consideration

Nat. Gas V Diesel1990 to 2001

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2Q-9

0

1Q-9

1

4Q-9

1

3Q-9

2

2Q-9

3

1Q-9

4

4Q-9

4

3Q-9

5

2Q-9

6

1Q-9

7

4Q-9

7

3Q-9

8

2Q-9

9

1Q-0

0

4Q-0

0

3Q-0

1

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Avg QTR Nat Gas Avg QTR Diesel


11

• Proven safety record / CNG dissipates in atmosphere

• Narrow range of flammability / High ignition temperature• Reduced emissions / eliminate contamination• 1.35 CNGGGE = 1 gal of diesel

• Vehicle performance and fuel station design

Experience

CNG FuelCNG FuelCNG Fuel

CNG VehiclesCNG VehiclesCNG Vehicles

•Acquisition vs conversion•Power and performance•Range requirements•Maintenance cost

Consideration

•Early entry / 2 x cost•CNG under powers / performs - upgrade •200 miles vs 350 miles•Maintenance cost per mile 29% higher than diesel

Experience


12

CNG $ AnalysisCNGCNG $ Analysis$ Analysis

• Tax incentives• Fuel cost• Fuel consumption in miles /

car day

Consideration

• Fleet conversion cost

Experience

• Rebates• Fill time• Capital costs• Own / lease or fuel

contracts

• Fuel cost fluctuation

BackgroundBackgroundUnited Parcel ServiceUnited Parcel Service


13

UPS OverviewUPS Overview

• Largest cellular userin the world

• 2 Million trackingrequests per dayover the web

• Connect 1.7 millionsellers with 7 millionbuyers every day

• 344,000 employees• $29.8 billion revenue• Covers 4 billion of

World’s population• 11th largest airline• 13.2 million packages

per day, 3 billion/year• Annual IT investment

of over $1 billion


UPS ONLINE COURIER GLOBAL PRICINGUPS ONLINE COURIER GLOBAL PRICING

Monthly Track/Encoded Track Only1-99 $2.50 $1.00 100-299 $2.25 $.90 300-999 $2.00 $.701000+ $1.75 $.60


14

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

1996 1997 1998 1999Phone Calls Automated Phone Calls OnLine Internet

17%

90%Thousands of Inquiries

Electron

ically Co

nnected

Source: UPS CSC Analysis

51%

77%

Total Peak DayCustomer InquiriesTotal Peak DayCustomer Inquiries

Fundamental Nature of Global Commerce Changingpdf.wri.org/2001summit_upsppt.pdf · 2018. 9. 21. ·...

Documents

Transcript of Fundamental Nature of Global Commerce Changingpdf.wri.org/2001summit_upsppt.pdf · 2018. 9. 21. ·...