Let’s Talk Freight Maryann Cassidy Kearns e-Commerce Sales United Parcel Service January 24, 2001.

Let’s Talk FreightLet’s Talk Freight

Maryann Cassidy Kearnse-Commerce Sales

United Parcel Service

January 24, 2001

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Facing a virtual reality?Facing a virtual reality?

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Importance of FulfillmentImportance of Fulfillment

• Christmas 1999…items arrived later than promised-and some didn't arrive at all. It became apparent that E-business success depends more on capable back-end fulfillment systems than on flashy Web sites…”

--Information Week,Information Week, September 2000 September 2000

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A Tradition of Watching Our Customers' Back-Ends

A Tradition of Watching Our Customers' Back-Ends

•Technology vision looks first at the back-end

•$11 billion investment

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The UPS PerspectiveThe UPS Perspective

•13 million packages each day

•Seven percent of US GDP

•A decade of applying technology to commerce

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SupplierManufacturer

DistributorRetailer

EndConsumer

Supplier Manufacturer Distributor RetailerEnd

Consumer

InformationGoods

Funds

…into pull value chains

Supply chains are being transformed...Supply chains are being transformed...

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Combining Three Flowsof CommerceCombining Three Flowsof Commerce

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Characteristics of the new electronic supply chain

Characteristics of the new electronic supply chain

•Customized products and services

•Global visibility•Agile•Lightning velocity•Managing multiple suppliers

seamlessly

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Integration Throughout the Customer’s Business Process

OrderEntry

AcctProcess

Inventory Pick, Pack &

Ship

Returns

InternetEDIPhoneFaxMail

Customer Service

•Select Service•Rate & Validate•Tracking•Reference Number Tracking•Time in Transit

•Proof of Delivery•Electronic Payment•Tracking

•Service Information•Tracing•Proof of Delivery•Service Availability

•Interface to Inventory Systems•Print Shipping Labels•Send Shipping Detail•Ship Notice to Facilitate Pmt

•Send Tracking Number and Package Count to Merchant

•Initiate Pickup

•Initiate pickup at customer’s location

•Verify pickup address•Confirm pickup and route notice to merchant

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ElectronicBilling

Days Sales OutstandingCash Flow

Direct IntegrationInbound and Outbound

Real Time Visibility

Planning and Forecastingaccuracy

Integrate transportation intoenterprise finance system

Tracking

POD

TNT

Improve Customer

Service

Enhance Corporate Financials

ImproveInventory Turns

EliminateFreight Bill

Audit

Integration = Process Improvement

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•Consumer-Pull

•Globalization•Globalization

Two Strong Forces Creating Revolution in Commerce


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•Consumer-Pull•Consumer-Pull

•Globalization



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The UPS View: Drop the "E" in E- Commerce

The UPS View: Drop the "E" in E- Commerce

•Computers can't cough up packages

•Technology can combine three commerce flows

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Applying Technologies For Customer Value


•Target the right customers•Target the right customers•Streamline business processes that impact the

customer

•Let customers help themselves

•Help customers do their jobs

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•Target the right customers•Streamline business processes that impact the

customer•Streamline business processes that impact the

customer

•Let customers help themselves


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0500

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

1996 1997 1998 1999

Phone Calls Automated Phone Calls OnLine Internet

17%

90%Thousands of Inquiries

Electronically Connected

Source: UPS CSC Analysis

51%

77%

Total Peak DayCustomer InquiriesTotal Peak DayCustomer Inquiries

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customer

•Let customers help themselves•Let customers help themselves


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Our Customers’ Cost of Tracking a Package:

Phone – over $2.50 /occurrence

Internet – under $0.10 /occurrence

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customer

•Let UPS customers help themselves

•Help customers do their jobs•Help customers do their jobs

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Ford and UPS Have A Better IdeaFord and UPS Have A Better Idea

• Track vehicles from factory floorto dealership

• Reduce costs; improve customer service

• Manage Ford's transportation system to shorten time to market by 40 percent

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In Summary...In Summary...

•Enabling Commerce•Supply Chains are changing

rapidly•Evaluate all business

processes for effectiveness and efficiency...

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Process Improvement is the Key to Value Creation

Strapping New Technology to Old Business

Processes Will Negatively Impact Value

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Questions?

“Let’s Talk

Freight”

Let’s Talk Freight Maryann Cassidy Kearns e-Commerce Sales United Parcel Service January 24, 2001.

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Transcript of Let’s Talk Freight Maryann Cassidy Kearns e-Commerce Sales United Parcel Service January 24, 2001.