2008 Pacific RegionInternational Review

Diana StopfordApril 07, 2008

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One to Three Days

UPS Worldwide ExpressSM

Day-definite

Overnight to/from Canada

2 days to/from Europe and Latin America

2 to 3 days to/from Asia

Two to Five Days

UPS Worldwide ExpeditedSM

Day-definite service to/from 63 countries throughout Europe, Asia and Central and South America

Contractual Service:

UPS WorldEase

Consolidated customs clearance for packages to multiple recipients within a country or the EU.

Available in 75 countries

Services Overview

Best Available Flight

UPS SonicAir®

From the U.S. to more than 180 countries and territories; typically completed within 24 hours

Available 24/7/365

UPS Worldwide Express

PlusSM

Day-definite by 8 a.m. for import, 8:30 a.m. or 9 a.m.

for export

International Small Package

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• Technology Solutions• Warehouse design• Supply Chain consulting

CustomerSolutions

MailInnovations

Supply Chain

Solutions

UPSCapital

•UPS Mail Innovations• Global Trade Financing• Lease Financing• Payment Solutions

• UPS Freight Services• International Consolidation• Warehouse Management• Service Parts Logistics

A Partnership for Growth

Your Company

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Strategic Supply Chain Mapping

Characteristics

Strategic View Across Reporting Structures

Executive Sponsorship (C-Level, Finance)

Coordination Across Divisions

Data Sharing

Time Commitment

Benefits

Yields greater results for the company as whole

Allows the Supply Chain to be a Competitive Advantage

Supply Chain Professionals Drive Thought Leadership

Sourcing

Manufacturing

International

Logistics

Domestic

TransportationDC Network Sales Channel Returns

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UPS Suite of Shipping and Information SolutionsService Description

UPS Internet Shipping /

UPS CampusShip®

Internet Shipping is a fast and convenient way to create UPS shipping labels – with an online address book and no software to install CampusShip gives you web-based control over the shipping activities of your employees from a centralized location.

UPS WorldShipTM High volume shipping software that streamlines export shipment

processing by creating and electronically transmitting critical export documents.

Internet Control and Visibility Solution (ICVS)

A flexible and robust solution that can meet all of your business rules and still ensure on-time delivery of your shipments.

ConnectShipEnables integrators to incorporate shipping, rating and routing functionality into your enterprise, e-commerce and supply chain environment.

Quantum View® Manage Provides a comprehensive view of shipping status information of small

package and freight activity by placing up-to-date information about the packages you are sending and receiving at your fingertips.

UPS Billing Data and Billing Analysis ToolProvides UPS billing information in a raw-data format that canbe integrated into your systems, as well as a reporting tool to analyze all your UPS charges across 36 countries

UPS TradeAbility™Online suite of information-based services to help customers effectively manage the movement of international goods in a compliant, timely and efficient manner.

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Global Trade Growth

Cross-border global transactions

– $3T in 1990

– $10T in 2007

– $70T in 2025

1B new global consumers in next 10 years

Imports/Exports 25% of U.S. GDP, growing to 37% by 2025

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Great Opportunities for Small Business to Go Global

U.S. Business Monitor:

67% of small businesses don't participate in cross-border trade

Small and medium businesses account for 97% of U.S. exporters, butonly 30% of total export value of U.S. goods

Two-thirds of Small businesses sell to only one foreign market

Canada and Mexico seen as best opportunities; China fastest-growing export market

SBA:

Companies engaged in international trade are 20% more productive, have 20% greater job growth and are 9% more likely to stay solvent

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Overcoming Obstacles to Global Growth

How do I distribute my products to customers outside the U.S.?

– Adopt a trusted network

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UPS’s Global Network to Meet Customer Needs

UPS leverages its global network to offer a broad portfolio of services

UPS’s services include small package delivery, heavy freight transportation, ocean freight, supply chain management, trade financing and customs clearance. UPS helps companies simplify international trade, streamline worldwide operations and improve revenue.

Serving more than 215 countries and territories worldwide with more than 577 aircraft, UPS can help meet any global transportation need.

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UPS Presence: Asia

Australia

India

China

S. Korea

Japan

Singapore

CLARK

Taipei

HongKong

Vietnam

Thailand

Malaysia

Taiwan

Philippines

IndonesiaUPS Facilities

UPS Supply Chain Solutions® Facilities

Air Hubs

Clark Air Hub

Operational Profile:

Region headquarters in Singapore

40 countries and territories served in Asia

6,500 employees in region

UPS Access Points:

23 UPS Customer Centers

136 Mail Boxes Etc.®

Two The UPS Store®

2,147 Affiliates

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UPS Presence:Canada

Vancouver

HamiltonToronto

Winnipeg

Halifax

Calgary

UPS Facilities

UPS Supply Chain Solutions Facilities

Airports

*Principal locations displayed

Fredericton

Montreal

Operational Profile:

Every address in Canada served

Over 11,000 employees

Six international airports served Daily Flight Segments

– 73 Intra-Canada

– 12 International

Delivery Fleet: 2,521 (package cars, tractors, vans and trailers)

49 UPS operating facilities*

83 UPS Supply Chain Solutions® facilities*

One brokerage facility (Fredericton)

UPS Access Points:

288 The UPS Store

14 Mail Boxes Etc.

510 Drop Boxes

128 Affiliates

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UPS Presence:Europe

UPS Facilities*

UPS Supply Chain Solutions® Facilities*

Airports

Cologne Air Hub

Operational Profile

Region headquarters in Brussels, Belgium

57 countries and territories served across Europe (112 including the Middle East and Africa)

32,000 employees in the region

UPS Access Points:

304 UPS Customer Centers

860 Mail Boxes Etc.

13 Drop Boxes

102 Affiliates

Nottingham

London

COLOGNE

Paris

Madrid

*Principal locations displayed

Brussels

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UPS Presence: Latin America

UPS Facilities*

UPS Supply Chain Solutions® Facilities*

Airports

*Principal locations displayed

Operational Profile:

Region headquarters in Miami, FL, U.S.

Over 50 countries and territories served in Latin America

More than 6,000 employees in Latin America

More than 1,000 vehicles including trucks, vans and motorcycles

UPS Access Points:

45 UPS Customer Centers

101 Mail Boxes Etc.

108 Affiliates

Mexico

Brazil

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Overcoming Obstacles to Global Growth

How do I simplify and comply with all that paperwork?

– Automate and integrate

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UPS Paperless Invoice

The first carrier to enable you to submit your CI electronically.

UPS enables the use of electronic invoices.

Another way to integrate technology to integrate order processing.

Information is shared properly and correctly.

Works seamlessly with UPS Worldship 10.0 version

With electronic transmission, shipment processing can begin, enabling timely Customs clearance.

New International Services For 2008:

Services Overview

UPS International Return Service

The only company in the shipping industry to offer customers the ability to request international returns from 98 countries through the PC or web based shipping systems.

The new expansion leverages UPS’s superior technology providing shipping, visibility and billing solutions that customers rely on and are unmatched in the shipping industry.

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Overcoming Obstacles to Global Growth

How do I meet my customers' delivery deadlines?

– Release the choke points

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Supply Chain Mapping Template

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Overcoming Obstacles to Global Growth

How do I price if I don't know my total logistics costs?

– Find a carrier with landed cost engines

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Overcoming Obstacles to Global Growth

How do I know where my orders are and whether they’vebeen delivered?

– Maintain visibility

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Overcoming Obstacles to Global Growth

How do I facilitate global returns?

– International returns service

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Overcoming Obstacles to Global Growth

How can I bridge the physical and financial supply chains?– Find a supply chain “translator” – “Best run supply chains have stock market capitalization rates 7% to

26% above industry average” Accenture – “Companies that open their internal processes to external

collaboration will grow 20% faster than those who don’t” Gartner Group

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Who is there to help me?

UPS: Partnering with the United States Commercial Service

Counseling and advocacy: International Business consulting including Exporting & Importing, finance, logistics, Trade Compliance & understanding local business cultures

Finding international partners: Trade Missions to Asia, Europe, Middle East & South America

Develop & review International Business plans

International Market Research & Trade Information

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Partnering for Growth: Your Market

Use resources that make importing and exporting of products less complex and taxing on your organization’s resources

Understand the markets for your products and aggressively pursue your target markets: Don’t sell “ice cubes to Eskimos”

Concentrate on effectively serving and understanding these markets

Maintain viability of your products; continue to evolve