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About United Parcel Service Co.

UPS is the world's largest package deliverer, transporting nearly 22 million packages and documents per business day (more than 55 billion a year) throughout the US and in over 220 countries and territories. It deploys a fleet of approximately 125,000 cars, vans, tractors, and motorcycles, and roughly 600 aircraft for pickups and deliveries. In addition to package delivery, the company offers logistics and freight forwarding through UPS Supply Chain Solutions, and less-than-truckload (LTL) and truckload (TL) freight transportation through UPS Freight. Nearly 80% of its revenue comes from the US.

Operations

UPS has three business segments: US Domestic Package, International Package, and Supply Chain & Freight.

US Domestic Package is the company's largest business segment accounting for more than 60% of sales. This division includes UPS SurePost, an economy residential ground service for customers with non-urgent, lightweight residential shipments. It acts as a contractual residential ground service that partners its UPS Ground network with final delivery, often provided by the US Postal Service.

International Package delivers more than 20% of UPS' sales. It offers guaranteed time-definite express options through its Express Plus, Express, and Express Saver services. The company's Supply Chain & Freight segment, which generates close to 20% of sales, includes forwarding, logistics, truckload brokerage, UPS Freight, and financial services through UPS Capital.

Geographic Reach

UPS is headquartered in Atlanta, GA (Its UPS Supply Chain Solutions group is based in Alpharetta.) and has over 1,000 package operating facilities. Its US transportation hub, called Worldport, is in Louisville, KY. It also has US regional air hubs located in Texas, California, Philadelphia, Pennsylvania, and Illinois. Its European air hub is in Cologne, Germany, and it maintains Asia-Pacific air hubs in Shanghai and Shenzhen, China and in Hong Kong. A facility in Ontario is the regional air hub in Canada and UPS' Miami, FL hub covers Latin America and the Caribbean.

Almost 80% of the company's revenue is generated in the US.

Sales and Marketing

In addition to package delivery to consumers, UPS targets B2B customers for its logistics services in industries such as health care, life sciences, government, retail, automotive, industrial manufacturing, and aerospace.

Financial Performance

UPS has enjoyed several years of steady revenue growth and solid profits. Its sales have increased 25% since 2015.

Revenue in 2019 reached a record $74.1 billion, a 3% increase compared with $71.9 billion in 2018. The increase was due to average daily package volume increased 5.8% primarily driven by our U.S. Domestic Package segment, which experienced growth from SMBs as well as several large customers, led by our largest customer, Amazon.

Profit was $4.4 billion in 2019, down 7% from the previous year as a result of higher operating expenses including higher pension expenses and the cost of transformation initiatives in the US (new facility and technology projects).

Cash at the end of fiscal 2019 was $5.2 billion, an increase of $871 million from the prior year. Cash from operations contributed $8.6 billion to the coffers, while investing activities used $6.1 billion, mainly for capital expenditures on buildings, facilities and plant equipment decreased in 2019 compared to 2018 in their U.S. and international package businesses, as the company completed several facility automation and capacity expansion projects in 2018. Financing activities used another $1.7 billion for loan payments, dividends to stockholders, and the company's stock repurchase program.

Strategy

The company's strategy is to provide advanced logistics solutions made possible by a broad portfolio of differentiated services and capabilities integrated into their customers' businesses. This strategy, supported by their efficient global multimodal network, enables them to deliver value to, and build lasting relationships with, their customers.

UPS offer a full range of industry-leading products, services and capabilities across a growing geographical and industry footprint. Achieving their objectives has required new methods and innovative approaches to develop and implement logistics services that address customer needs for speed to market, visibility, reliability and greater control. Recent examples include: the acquisition or creation of platform-based offerings such as UPS e-fulfillment and Ware2Go; specialized healthcare solutions such as UPS Premier, which offers prioritized handling and visibility for critical healthcare shipments; a full range of global customs brokerage and shipment insurance services; and offerings such as UPS My Choice for business that give small- and medium-sized businesses ("SMBs") greater control, visibility and data access to improve their customer service.

The company's strategic investments are primarily focused in areas they believe will drive growth and lasting profit potential: services and solutions for SMBs; international growth markets; global Business to Consumer ("B2C") and Business to Business ("B2B") e-commerce; healthcare and life-sciences logistics; and operational improvements to drive greater productivity and the use of automation to enhance the efficiency of our network.

Company Background

Seattle teens Jim Casey and Claude Ryan started American Messenger Company, a delivery and errand service, in 1907. They were soon making small-parcel deliveries for local department stores, and in 1913 changed the company's name to Merchants Parcel Delivery. Casey, who led the company for 50 years, established a policy of manager ownership, best service, and lowest rates. In 1916 new employee Charlie Soderstrom chose the brown paint still used on the company's vehicles. Service expanded outside Seattle in 1919 when Merchants Parcel bought Oakland, California-based Motor Parcel Delivery, later changing its name to United Parcel Service (UPS).

In 1930, the year after the stock market crash, UPS moved its corporate headquarters to New York City where it remained for 45 years until a move to Greenwich, Connecticut in 1975. By the 1990s, the high-cost Connecticut housing market was making it difficult for the company to attract and retain employees, so in 1991, it moved again to Atlanta to leverage its large airport and available labor market.

United Parcel Service Co.

55 Glenlake Pkwy
Atlanta, GA 30328-3498
Phone: 1 (404) 828-6000

Firm Stats

Employer Type: Privately Owned
Supervisor: Joe Howlett
Director: Scott Macdonald
Sales Director: Joseph Olejniczak
Employees (This Location): 191
Employees (All Locations): 798

Major Office Locations

Atlanta, GA

Other Locations

Louisville, KY