United Parcel Service
Overview
 
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery
Package delivery
Package delivery or parcel delivery is the shipping of packages or high value mail as single shipments. While the service is provided by most postal systems, private package delivery services have also existed in competition with and in place of public postal services.-Package delivery in the...

 company. Headquartered in Sandy Springs, Georgia
Sandy Springs, Georgia
Sandy Springs is a city in north Georgia, United States. It is a northern suburb of Atlanta. With a 2010 population of 93,853, Sandy Springs is the sixth-largest city in the state and the second-largest city in Metro Atlanta. Sandy Springs is located in north Fulton County, Georgia, just south of...

, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world.

UPS is well known for its brown trucks, internally known as package cars (hence the company nickname "The Big Brown Machine").
Encyclopedia
United Parcel Service, Inc. , typically referred to by the acronym UPS, is a package delivery
Package delivery
Package delivery or parcel delivery is the shipping of packages or high value mail as single shipments. While the service is provided by most postal systems, private package delivery services have also existed in competition with and in place of public postal services.-Package delivery in the...

 company. Headquartered in Sandy Springs, Georgia
Sandy Springs, Georgia
Sandy Springs is a city in north Georgia, United States. It is a northern suburb of Atlanta. With a 2010 population of 93,853, Sandy Springs is the sixth-largest city in the state and the second-largest city in Metro Atlanta. Sandy Springs is located in north Fulton County, Georgia, just south of...

, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world.

UPS is well known for its brown trucks, internally known as package cars (hence the company nickname "The Big Brown Machine"). UPS also operates its own airline
UPS Airlines
UPS Airlines is an American cargo airline owned by United Parcel Service Inc. . The company is headquartered in Louisville, Kentucky. Its home airport is located at Louisville International Airport...

  based in Louisville, Kentucky
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...

.

Company structure

UPS's primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended their service portfolio to include less than truckload
Less than truckload
Less than truckload shipping is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down in to units less than . Full truckload carriers move...

 transportation (primarily in the U.S.) and supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...

 services.
UPS reports their operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.

U.S. Domestic Package

U.S. Domestic Package operations include the time-definite delivery of letters, documents, and packages throughout the United States.

International Package

International Package operations include delivery to more than 220 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either origin or distribution outside the United States.

Supply Chain & Freight

Supply Chain & Freight (UPS-SCS for UPS Supply Chain Solutions) includes UPS's forwarding
Forwarding
Forwarding is the relaying of packets from one network segment to another by nodes in a computer network. The simplest forwarding model — unicasting — involves a packet being relayed from link to link along a chain leading from the packet's source to its destination. However, other forwarding...

 and contract logistics operations,
UPS Freight
UPS Freight
UPS Freight is the Less-Than-Truckload trucking division of UPS. UPS acquired on August 8, 2005 Overnite Transportation for $1.25 billion. On April 28, 2006 Overnite transportation officially became UPS Ground Freight, Inc. The logos on the doors of the Overnite tractors were covered with signs...

, and other related business units. UPS's forwarding and logistics business provides services in more than 175 countries and territories worldwide, and includes worldwide supply chain design, execution and management, freight forwarding and distribution, customs brokerage, mail and consulting services. UPS Freight offers a variety of less than truckload (“LTL”) and truckload (“TL”) services to customers in North America.

Other business units within this segment include The UPS Store
The UPS Store
The UPS Store is a subsidiary of UPS, with locations in the United States and Canada. Each store offers shipping, postal, online printing, and other business services. In the United States, each store is independently owned and operated by a licensed franchisee of Mail Boxes Etc., Inc...

 and UPS Capital.
  • August 28, 1907: founded the American Messenger Company in Seattle, Washington
    Seattle, Washington
    Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...

    , capitalized with $100 in debt.
  • 1913: The first delivery car appears, a Model T Ford. Casey and Ryan merge with a competitor, Evert McCabe, and form Merchants Parcel Delivery. Consolidated delivery is also introduced, combining packages addressed to a certain neighborhood onto one delivery vehicle.
  • 1918: Charles W. Soderstrom, is recruited and helps manage the company's ever-growing fleet of delivery vehicles.
  • 1919: Service begins in Oakland, California
    Oakland, California
    Oakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...

    . The name United Parcel Service is adopted. The first official logo is released.
  • 1930: A consolidated service begins in New York City, and began operations soon after in other major cities in the East
    Eastern United States
    The Eastern United States, the American East, or simply the East is traditionally defined as the states east of the Mississippi River. The first two tiers of states west of the Mississippi have traditionally been considered part of the West, but can be included in the East today; usually in...

     and the Midwest. First mechanical system for package sorting. Accountant George D. Smith joins the company. The name United Parcel Service is adopted all over the country. All UPS vehicles are then painted the familiar Pullman brown, chosen because it was considered neat, dignified, and professional. Headquarters move to New York City.
  • 1937: The UPS logo is revised for the first time; it now includes the tagline "The Delivery System for Stores of Quality".
  • 1940–1959: Services are expanded by acquiring "common carrier
    Common carrier
    A common carrier in common-law countries is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport...

    " rights to deliver packages between all addresses, any customer, private and commercial.


  • 1952: Blue Label Air established.
  • 1961: Renowned graphic designer Paul Rand
    Paul Rand
    Paul Rand Paul Rand Paul Rand (born Peretz Rosenbaum, (August 15, 1914 — November 26, 1996) was an American graphic designer, best known for his corporate logo designs, including the logos for IBM, UPS, Enron, Westinghouse, ABC, and Steve Jobs’ NeXT...

     creates the iconic third logo for UPS. The shield represents stability and integrity, and the bow on the box represents the package service.
  • 1975: UPS moves its headquarters to Greenwich, Connecticut. UPS begins servicing all of the 48 contiguous states of the USA. UPS also establishes Canadian operations in 1975. On Feb. 28, UPS Ltd. (later changed to UPS Canada Ltd.) begins operations in Toronto, Ontario
    Ontario
    Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

     with a single delivery vehicle. UPS Canada's head office is located in Mississauga, Ontario.
  • 1976: UPS establishes itself in Europe with a domestic operation in West Germany. Blue Label Air.
  • 1982: UPS Next-Day Air Service is offered in the US and Blue Label Air becomes UPS 2nd Day Air Service.
  • 1988: UPS Airlines is launched.
  • 1991: UPS moves its headquarters again – to suburban Atlanta, Georgia.
  • 1992: UPS acquires both Haulfast and Carryfast and rebrands to UPS Supply Chain Solutions. Haulfast provides the pallet haulage and trunking network for the CarryFast group of companies.
  • 1995: UPS acquires SonicAir to offer service parts logistics and compete with Choice Logistics
    Choice Logistics
    Choice Logistics is a third-party service parts logistics provider that offers customized solutions for global high-tech OEMs and service organizations. The company has more than 400 strategic stocking locations around the world to provide same-day logistics solutions to optimize inventory, reduce...

    .
  • 1997: Teamsters strike shuts down UPS.
  • 1998: UPS Capital is established.
  • 1999: UPS acquires Challenge Air.
  • November 10, 1999: UPS becomes a public company.
  • 2001: UPS acquires Mail Boxes Etc.
    Mail Boxes Etc.
    Mail Boxes Etc. is a global retail chain of business service centers. The locations offer pack and ship services, couriers, office services, document production, shipping, packing materials, printing, copying, postal services and some other business services.Mail Boxes Etc., Inc...

     and re-brands to 'The UPS Store'.
  • In March 2003, UPS unveils a new logo, replacing the iconic package and shield originally designed in 1961 by Paul Rand
    Paul Rand
    Paul Rand Paul Rand Paul Rand (born Peretz Rosenbaum, (August 15, 1914 — November 26, 1996) was an American graphic designer, best known for his corporate logo designs, including the logos for IBM, UPS, Enron, Westinghouse, ABC, and Steve Jobs’ NeXT...

    .
  • 2004: UPS enters the heavy freight business with the December 20 announcement of the purchase of Menlo Worldwide Forwarding
    Menlo Worldwide
    Menlo Worldwide Logistics is a global supply chain company operating in 20 countries worldwide. Its core business offerings include third-party logistics and supply chain management. Menlo Worldwide Logistics is a business unit of Con-way, and shares its corporate headquarters with its parent...

    , a former subsidiary of Menlo Worldwide
    Menlo Worldwide
    Menlo Worldwide Logistics is a global supply chain company operating in 20 countries worldwide. Its core business offerings include third-party logistics and supply chain management. Menlo Worldwide Logistics is a business unit of Con-way, and shares its corporate headquarters with its parent...

    . UPS rebrands it as 'UPS Supply Chain Solutions'. The purchase price is US$150 million and the assumption of US$110 million in long-term debt.
  • August 5, 2005: UPS announces that it has completed its acquisition of less-than-truckload (LTL) trucking company Overnite Transportation for US$1.25 billion. This was approved by the FTC
    FTC
    FTC may refer to:- Organizations :* Federal Trade Commission, a US agency for consumer protection* Ferencvárosi TC, a Hungarian sports club* Financial Training Center Limited, a training institution in Tanzania...

     and Overnite shareholders on August 4, 2005. On April 28, 2006, Overnite officially becomes UPS Freight
    UPS Freight
    UPS Freight is the Less-Than-Truckload trucking division of UPS. UPS acquired on August 8, 2005 Overnite Transportation for $1.25 billion. On April 28, 2006 Overnite transportation officially became UPS Ground Freight, Inc. The logos on the doors of the Overnite tractors were covered with signs...

    .
  • October 3, 2005: UPS completes the purchase of LYNX Express Ltd
    LYNX Express
    LYNX Express was a courier company operating principally in the United Kingdom. It was acquired in September 2005 by UPS.-History:The Company's history dates back to the nationalisation of the British Railways after World War II...

    , one of the largest independent parcel carriers in the United Kingdom, for £
    Pound sterling
    The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

    55.5 million (US$97.1 million) after receiving approval for the transaction from the European Commission
    European Commission
    The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

    . The first joint package car center operation, in Dartford
    Dartford
    Dartford is the principal town in the borough of Dartford. It is situated in the northwest corner of Kent, England, east south-east of central London....

    , Kent, is opened in 2006.
  • August 28, 2007: United Parcel Service celebrates its 100th anniversary.
  • June 2009: United Parcel Service lobbies to have language added to the FAA
    Federal Aviation Administration
    The Federal Aviation Administration is the national aviation authority of the United States. An agency of the United States Department of Transportation, it has authority to regulate and oversee all aspects of civil aviation in the U.S...

     Reauthorization Act. FedEx
    FedEx
    FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...

     runs a negative ad campaign called Brown Bailout
    Brown Bailout
    In 2009 a provision was added to the Federal Aviation Administration Reauthorization Act that would have changed the conditions under which some of FedEx Corporation's employees could unionize...

    .

Competitors

Major domestic (United States) competitors include United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

 (USPS) and FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...

. In addition to these domestic carriers, UPS competes with a variety of international operators, including Canada Post
Canada Post
Canada Post Corporation, known more simply as Canada Post , is the Canadian crown corporation which functions as the country's primary postal operator...

, FCML WORLDWIDE, DHL Express
DHL Express
DHL Express is a division of the German logistics company Deutsche Post providing international express mail services. DHL is a world market leader in sea and air mail....

, Deutsche Post
Deutsche Post
Deutsche Post AG, operating under the trade name Deutsche Post DHL, is the world's largest logistics group. With its headquarters in Bonn, the corporation has 467,088 employees in more than 220 countries and territories worldwide and generated revenue of € 51.48 billion in 2010...

 (and its subsidiary DHL
DHL
DHL Express is a division of the German logistics company Deutsche Post providing international express mail services. DHL is a world market leader in sea and air mail....

), TNT Express
TNT Express
TNT Express N.V. is an international express and cargo delivery services company with headquarters in Hoofddorp, Netherlands. The firm has fully owned operations in 65 countries and delivers documents, parcels and pieces of freight to over 200 countries...

, Royal Mail
Royal Mail
Royal Mail is the government-owned postal service in the United Kingdom. Royal Mail Holdings plc owns Royal Mail Group Limited, which in turn operates the brands Royal Mail and Parcelforce Worldwide...

, Japan Post
Japan Post
was a government-owned corporation in Japan, that existed from 2003–2007, offering postal and package delivery services, banking services, and life insurance. It had over 400,000 employees and ran 24,700 post offices throughout Japan and was the nation's largest employer. One third of all Japanese...

, India Post and many other regional carriers, national postal services and air cargo handlers (see Package delivery
Package delivery
Package delivery or parcel delivery is the shipping of packages or high value mail as single shipments. While the service is provided by most postal systems, private package delivery services have also existed in competition with and in place of public postal services.-Package delivery in the...

 and Mail pages).

Historically, the bulk of UPS's competition came from inexpensive ground-based delivery services, such as Parcel Post
Parcel post
Parcel post is a service of a postal administration for sending parcels through the post. It is generally one of the less expensive ways to ship packages that are too heavy to be sent by regular letter post and is usually a slower method of transportation....

 (USPS) or Choice Logistics
Choice Logistics
Choice Logistics is a third-party service parts logistics provider that offers customized solutions for global high-tech OEMs and service organizations. The company has more than 400 strategic stocking locations around the world to provide same-day logistics solutions to optimize inventory, reduce...

. But in 1998 FedEx expanded into the ground parcel delivery market by acquiring
Mergers and acquisitions
Mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...

 RPS (originally Roadway Package System) and rebranding it as FedEx Ground
FedEx Ground
FedEx Ground is a shipping company which is a subsidiary of the FedEx corporation. It is headquartered in Moon Township, Pennsylvania, a suburb of Pittsburgh. Originally conceived as a lower cost competitor to UPS, Roadway Package System was created to take advantage of new barcode, material...

 in 2000. In 2003 DHL expanded its US operations by acquiring Airborne Express
Airborne Express
Airborne Express was an express delivery company and cargo airline. Headquartered in Seattle, Washington, its hub was at Wilmington, Ohio.Airborne was founded as the Airborne Flower Traffic Association of California in 1946 to fly flowers from the state of Hawaii to US Mainland.Airborne Express...

, significantly increasing its presence in the United States, and adding more competition in the ground delivery market. In response to this, UPS partnered with the US Postal Service to offer UPS Mail Innovations, a program that allows UPS to pick up mail and transfer it to a USPS center, or destination delivery unit (DDU), for final distribution. This process is also known as zone skipping, long used by Parcel Consolidators.

More recently, the continued growth of online shopping, combined with increasing awareness of the role transportation (including package delivery) has on the environment
Natural environment
The natural environment encompasses all living and non-living things occurring naturally on Earth or some region thereof. It is an environment that encompasses the interaction of all living species....

, has contributed to the rise of emerging competition from niche carriers or rebranded incumbents. For instance, the US Postal Service claims "greener delivery" of parcels on the assumption that USPS letter carriers deliver to each US address, six days a week anyway, and therefore offer the industry's lowest fuel consumption per delivery. Other carriers, like ParcelPool.com, which specializes in residential package delivery to APO-FPO addresses, Hawaii, Alaska, Puerto Rico and other US Territories, arose in response to increased demand from catalog retailers and online e-tailers for low-cost residential delivery services closely matching service standards normally associated with more expensive expedited parcel delivery.

Brand mark

In April 2003, UPS unveiled a new logo, the fourth the company has used, replacing the iconic package and shield originally designed in 1961 by Paul Rand
Paul Rand
Paul Rand Paul Rand Paul Rand (born Peretz Rosenbaum, (August 15, 1914 — November 26, 1996) was an American graphic designer, best known for his corporate logo designs, including the logos for IBM, UPS, Enron, Westinghouse, ABC, and Steve Jobs’ NeXT...

. The original logo first saw use in 1919 when the company was American Messenger Company. In 1937, the logo was redesigned to reflect the company's new name United Parcel Service. All four designs for the logo shared the shield theme, and UPS employees often refer to the brand mark as "the shield."

Brown

The brown color that UPS uses on its vehicles and uniforms is called Pullman
Pullman Company
The Pullman Palace Car Company, founded by George Pullman, manufactured railroad cars in the mid-to-late 19th century through the early decades of the 20th century, during the boom of railroads in the United States. Pullman developed the sleeping car which carried his name into the 1980s...

 Brown
. The color is also mentioned in their former advertising slogan: "What can Brown do for you?" Originally founder James E. Casey wanted the trucks to be yellow, but one of his partners, Charlie Soderstrom stated they would be impossible to keep clean, and that Pullman railroad cars
Pullman (car or coach)
In the United States, Pullman was used to refer to railroad sleeping cars which were built and operated on most U.S. railroads by the Pullman Company from 1867 to December 31, 1968....

 were brown for just that reason.

Font

UPS commissioned brand consultancy FutureBrand to develop their own font, UPS Sans, for use in marketing and communication material. UPS Sans was created by slightly altering certain parts of FSI FontShop International
FSI FontShop International
FSI FontShop International is an international manufacturer of digital typefaces , based in Berlin and one of the large type foundries that exist today.All the typefaces are published as part of the FontFont library...

’s font FF Dax without permission. This has resulted in an agreement between FSI FontShop International and FutureBrand to avoid litigation.

Package cars

The UPS package car (or van) is a major symbol of the U.S. business world, with its iconic status referenced in an early-2000s ad campaign following UPS' sponsorship of Dale Jarrett
Dale Jarrett
Dale Arnold Jarrett is a former American race car driver and current sports commentator known for winning the 1999 NASCAR Winston Cup Series championship...

 in the NASCAR Sprint Cup Series: the ads were about how the company would prefer to race the truck over a stock car despite the futility of doing so, as "people love the truck".

The classic UPS package car is built on a General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

 or Ford chassis
Chassis
A chassis consists of an internal framework that supports a man-made object. It is analogous to an animal's skeleton. An example of a chassis is the underpart of a motor vehicle, consisting of the frame with the wheels and machinery.- Vehicles :In the case of vehicles, the term chassis means the...

, has a manual transmission, manual steering, and no radio or air conditioning. The older ones are easily recognizable due to their round headlights and turn signals set onto a sculpted fiberglass hood. These are either Grumman Olson or Union City Body P-500, P-600, or P-800 step vans (a recent redesign changed the look, replacing the round turn signals with ovoid LED
LEd
LEd is a TeX/LaTeX editing software working under Microsoft Windows. It is a freeware product....

 ones). The cars lack manufacturer's name or badges.

Newer package cars in North America have either a Freightliner Trucks
Freightliner Trucks
Freightliner Trucks is an American manufacturer of heavy duty trucks, chassis and semi-trailer trucks in the United States. The company was founded as Freightliner Inc in 1942 and is now a division of Daimler Trucks North America, a subsidiary of the German Daimler AG...

 or Navistar International
Navistar International
Navistar International Corporation is a United States-based holding company that owns the manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Bus school and commercial buses, Workhorse brand chassis for motor homes and step vans, and is a private label...

 chassis; automatic transmissions and power steering are slowly appearing in package cars. UPS also operates Mercedes-Benz Sprinter
Mercedes-Benz Sprinter
The Mercedes-Benz Sprinter is a light and heavy commercial vehicle, built by Daimler AG of Stuttgart, Germany as a van, chassis cab and minibus, and sold as a Mercedes model, except in the U.S. where it is built from complete knock down kits and was sold by Freightliner until 2010 when Mercedes...

 box vans (occasionally with Dodge badges) as well as Dodge Grand Caravan minivans.

UPS has ordered Modec
Modec
Modec was a Coventry, UK electric vehicle manufacturer, specialising in Commercial vehicles in the N2 category. It unveiled its first model in April 2006 and announced its intention to commence series production in March 2007, with the first production vehicles destined for Tesco...

 electric vans for its UK and German fleets. Energy costs play a huge part in the potential profitability of package delivery companies like UPS, DHL and FedEx.

When UPS ground vehicles reach the end of their useful service life and are no longer roadworthy (typically 20–25 years or more, but generally when the body's structural integrity is compromised), they are almost always stripped of reusable parts, repainted in household paint to cover up the trademark, and then sent to the scrapyard to be crushed and broken up. The only exception to this policy is when a package car is repainted white for internal use, usually at a large hub. Prior to scrapping, UPS trucks and trailers are assigned an ADA (Automotive Destruction Authorization) number and must be crushed under supervision of UPS Automotive personnel, which records the vehicle's destruction, as UPS does not re-sell any of its ground vehicles.

When using non-proprietary vehicles such as Ford E-Series vans, Dodge Caravans, or Mercedes-Benz Sprinters, UPS will often remove the vehicle badging as to not provide free advertising to the manufacturer.

Other trucks

UPS commonly refers to its tractor-trailers as "feeders". The tractor
Tractor
A tractor is a vehicle specifically designed to deliver a high tractive effort at slow speeds, for the purposes of hauling a trailer or machinery used in agriculture or construction...

s are painted the same Pullman brown as the package cars, while all company-owned trailers
Trailer (vehicle)
A trailer is generally an unpowered vehicle pulled by a powered vehicle. Commonly, the term trailer refers to such vehicles used for transport of goods and materials....

 are painted gray. UPS trailers come in a variety of lengths. The shortest trailers (also known as "pups") are 28 feet (8.5 m) long; longer trailers come in lengths of 45, 48 or 53 feet (16.2 m). Towing two of the short trailers in tandem are referred to as "double pups." There are three different types of feeders — Flatbed, Drop Frame, and Trailer-on-flatcar
Intermodal freight transport
Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation , without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damages and...

 (TOFC); the latter are put onto railroad cars.

Tractors are usually made by International
Navistar International
Navistar International Corporation is a United States-based holding company that owns the manufacturer of International brand commercial trucks, MaxxForce brand diesel engines, IC Bus school and commercial buses, Workhorse brand chassis for motor homes and step vans, and is a private label...

 or Mack
Mack Trucks
Mack Trucks is an American truck-manufacturing company and a former manufacturer of buses and trolley buses. A wholly owned subsidiary of Renault Véhicules Industriels since 1990, Mack Trucks is currently a subsidiary of AB Volvo. The company's headquarters are located in Greensboro, North Carolina...

, but a few Ford, Sterling
Sterling Trucks
Sterling Trucks, a manufacturer of heavy duty trucks, was a subsidiary of Daimler Trucks North America, based in Portland, Oregon, United States, a member of the Daimler AG Truck Group. It was originally the heavy truck division of Ford Motor Company, but was purchased and rebranded in 1997....

, and Freightliner
Freightliner Trucks
Freightliner Trucks is an American manufacturer of heavy duty trucks, chassis and semi-trailer trucks in the United States. The company was founded as Freightliner Inc in 1942 and is now a division of Daimler Trucks North America, a subsidiary of the German Daimler AG...

 tractors are in the fleet. Past makes in the fleet include Chevrolet
Chevrolet
Chevrolet , also known as Chevy , is a brand of vehicle produced by General Motors Company . Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918...

, GMC, and Diamond REO. In keeping with "no free advertising", the same is done with the "feeder" trucks as with the package cars; all make and model badges are removed from the vehicle. At one time, UPS used electric-powered trucks, made by White Motors
White Motor Company
White Motor Company was an American automobile and truck manufacturer from 1900 until 1980. The company also produced bicycles, roller skates, automatic lathes, and sewing machines. Before World War II, the company was based in Cleveland, Ohio.-History:...

, for deliveries in Manhattan, NYC. There were only a few hundred of them, but they were notable for their "spooky silence" when running.

Bicycles

In 2008, UPS started hiring bike delivery people in Vancouver, Washington; Portland, Salem, Corvallis, Antelope, Eugene, and Medford, Oregon.

Trains

UPS contracts with several railroad companies in the United States to provide intermodal
Intermodal freight transport
Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation , without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damages and...

 transport for their cargo.

Other codes

  • Trailer /Railroad reporting marks: UPGX, UPGZ, UPOZ, UPSZ, UPWZ, UPSC
  • NMFTA
    National Motor Freight Traffic Association
    The National Motor Freight Traffic Association is a nonprofit organization headquartered in Alexandria, Virginia, and is dedicated to advancing the interests of its members. It consists of 950 freight carriers...

     SCAC Code
    Standard Carrier Alpha Codes
    The Standard Carrier Alpha Code is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long...

    : UPSS, UPSN, UPSC

ANA/UPS – All Nippon/United Parcel Deal

All Nippon Airways
All Nippon Airways
, also known as or ANA, is one of the largest airlines in Japan. It is headquartered at the Shiodome City Center in the Shiodome area in Minato, Tokyo, Japan. It operates services to 49 destinations in Japan and 35 international routes and employed over 14,000 employees as of May 2009...

, a Star Alliance
Star Alliance
Star Alliance is the world's first and largest airline alliance, headquartered in Frankfurt am Main, Germany . The alliance was founded in 1997 by five of the world's leading airlines: Air Canada, Lufthansa, Scandinavian Airlines, Thai Airways International and United Airlines...

 member, and UPS have formed a cargo alliance and code-share to transport member cargo, similarly to an airline alliance
Airline alliance
An airline alliance is an agreement between two or more airlines to cooperate on a substantial level. The three largest passenger alliances are the Star Alliance, SkyTeam and Oneworld. Alliances also form between cargo airlines, such as that of WOW Alliance, SkyTeam Cargo and ANA/UPS Alliance...

.

Personnel structure


UPS employs approximately 425,300 staff, with 358,400 in the U.S. and 67,300 internationally. Approximately 240,000 UPS drivers, package handlers and clerks are represented by the International Brotherhood of Teamsters. The company has had only one nationwide strike in its history, which occurred in 1997, lasting 16 days.

Chief executives

  • 1907–1962 James E. "Jim" Casey
    James E. Casey
    James E. Casey , American businessman, was born in Pick Handle Gulch near Candelaria, Nevada.In 1907, 19-year-old James Casey founded the American Messenger Company in Seattle, Washington with $100 borrowed from a friend. He served as president, CEO and chairman...

  • 1962–1972 George D. Smith
  • 1972–1973 Paul Oberkotter
  • 1973–1980 Harold Oberkotter
  • 1980–1984 George Lamb
  • 1984–1990 John W. Rogers
  • 1990–1997 Kent C. "Oz" Nelson
    Kent C. Nelson
    Kent C. Nelson is the retired Chairman and Chief Executive Officer of United Parcel Service, a position he held from November 1989 to December 1996. He now lives in Atlanta, GA....

  • 1997–2001 James P. Kelly
  • 2002–2007 Michael L. "Mike" Eskew
  • 2008 – present Scott Davis
    Scott Davis (businessperson)
    D. Scott Davis is the Chairman and Chief Executive Officer of United Parcel Service of America, Inc.-Biography:Davis has a bachelor’s degree in accounting from Portland State University and is a Certified Public Accountant. After graduating from college in 1974, he first worked for accounting firm...


System design

The UPS Parcel Network is based on a hub and spoke model
Spoke-hub distribution paradigm
The hub-and-spoke distribution paradigm is a system of connections arranged like a chariot wheel, in which all traffic moves along spokes connected to the hub at the center...

. UPS operates centers that feed parcels to hubs where parcels are sorted and forwarded to their destinations. Centers typically are the point of entry for parcels and send the parcels to one or more hubs. A hub is a location where many centers send packages to be sorted and sent back out to other centers or hubs. For example, a parcel being shipped from Wilmington, North Carolina
Wilmington, North Carolina
Wilmington is a port city in and is the county seat of New Hanover County, North Carolina, United States. The population is 106,476 according to the 2010 Census, making it the eighth most populous city in the state of North Carolina...

 to San Francisco is picked up by a driver and taken to the 23rd Street center in Wilmington, where it is loaded on a trailer and driven to Raleigh, North Carolina
Raleigh, North Carolina
Raleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...

. At Raleigh, the package would join packages from all over North Carolina and be forwarded to the Chicago Area Consolidated Hub
CACH
The Chicago Area Consolidation Hub is a package sorting hub for United Parcel Service. Located approximately southwest of downtown Chicago , the facility is so large it is in two municipalities. Five-sixths of the UPS properties lie within the Village of Hodgkins, Illinois, with one-sixth being...

 in Hodgkins, Illinois
Hodgkins, Illinois
Hodgkins is a village in Cook County, Illinois, United States. The population was 2,134 at the 2000 census.A large United Parcel Service sorting facility, known as CACH, is located partly in Hodgkins and partly in nearby Willow Springs on the outskirts of Chicago...

. After arriving there, it would be loaded onto a trailer
Trailer (vehicle)
A trailer is generally an unpowered vehicle pulled by a powered vehicle. Commonly, the term trailer refers to such vehicles used for transport of goods and materials....

 and sent by rail (trailer-on-flatcar in most cases) to the North Bay, California hub in San Pablo, California
San Pablo, California
San Pablo is a city in Contra Costa County, California, United States. The city of Richmond surrounds nearly the whole city. The population was 29,139 at the 2010 census. The current Mayor is Paul V. Morris, and the current Vice Mayor is Cecilia Valdez. Current Councilmembers include Arturo M....

, where it would then be forwarded to the delivery center, loaded onto the delivery vehicle, and transported to its final destination.

The UPS air network runs similarly to the ground network through a hub-and-spoke system, though air hubs are typically located at airports so packages and planes can quickly be unloaded, sorted, and loaded again. Centers feed packages to facilities at airports (called gateways), which in turn send them to an air hub to be sorted and put on another plane to a final destination gateway, and then from there to a center. For instance, a package traveling from Seattle, Washington
Seattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...

 to Atlanta, Georgia
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...

, would be loaded onto an air container
Unit Load Device
A unit load device , is a pallet or container used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft. It allows a large quantity of cargo to be bundled into a single unit. Since this leads to fewer units to load, it saves ground crews time and effort and...

 at Boeing Field
Boeing Field
Boeing Field, officially King County International Airport , is a two-runway airport owned and run by King County, Washington, USA. In promotional literature, the airport is frequently referred to as KCIA, but this is not the airport identifier. The airport has some passenger service, but is mostly...

 just south of Seattle and flown to the UPS Air Hub at Chicago Rockford International Airport in Rockford, Illinois
Rockford, Illinois
Rockford is a mid-sized city located on both banks of the Rock River in far northern Illinois. Often referred to as "The Forest City", Rockford is the county seat of Winnebago County, Illinois, USA. As reported in the 2010 U.S. census, the city was home to 152,871 people, the third most populated...

. From there it would be sorted to a container heading to Atlanta to Hartsfield-Jackson International Airport, and taken by truck from the airport to the delivery center.

UPS Store pricing for non-UPS products

Although The UPS Stores provide UPS shipping at regular UPS rates, The UPS Stores have been sometimes criticized for providing United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

 (USPS) services at prices higher than consumers would have paid for the same services directly from the postal service. The UPS Store allows individuals to ship via USPS at varying rates that are not the retail rates the post office charges; this is viewed as more of a convenience fee (akin to paying a slightly higher price for groceries at a convenience store). USPS rules allow third party stores to charge extra costs that they deem necessary. Instead of waiting on longer lines in the post office, customers are able to ship a package via USPS service in a UPS Store.“I think there’s a natural assumption on the part of the consumer that if you’re sending something through the U.S. Postal Service, even when it’s from another store, you’re not paying more, and if you are paying more, it’s just a pittance,” said Tod Marks, a senior editor at Consumer Reports
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...

.

Over the years, the UPS Stores’ own corporate press releases and website have not indicated that stores charge extra costs for services above the normal rates charged by the USPS. Cash register receipts that include postal product include wording that a surcharge may have been applied.

Fees for Canadians

The normal procedure for residential customers in Canada to import goods from the U.S. by mail is relatively simple; they are required to pay 5% GST
Goods and Services Tax (Canada)
The Goods and Services Tax is a multi-level value added tax introduced in Canada on January 1, 1991, by then Prime Minister Brian Mulroney and his finance minister Michael Wilson. The GST replaced a hidden 13.5% Manufacturers' Sales Tax ; Mulroney claimed the GST was implemented because the MST...

 on the item in Alberta, Saskatchewan, Manitoba, and Quebec and higher rates of HST (Harmonized Sales Tax) in eastern Canada, Ontario (13% HST), and British Columbia, plus a C$5 handling fee collected by the Canada Border Services Agency
Canada Border Services Agency
The Canada Border Services Agency is a federal law enforcement agency that is responsible for border enforcement, immigration enforcement and customs services....

 (CBSA) on behalf of Canada Post
Canada Post
Canada Post Corporation, known more simply as Canada Post , is the Canadian crown corporation which functions as the country's primary postal operator...

. This applies for mailed items greater than C$20 and gifts less than C$60 in value; this does not apply to items shipped by couriers such as UPS.

When delivering packages in Canada, UPS brokers
Customs broking
Customs brokerage is a profession that involves the 'clearing' of goods through customs barriers for importers and exporters...

 or clears the item through the CBSA and transfers a cost to the buyer. These fees are not disclosed at the time of purchase by the seller, as many sellers from the U.S. are themselves unaware of this.

As a result, there have been two class-action lawsuits filed against UPS by Canadians. The first one, filed in October 2006 by Robert Macfarlane, a resident of British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...

 alleges that the UPS brokerage is "so harsh and adverse as to constitute an unconscionable practice."

The second, filed by Ryan Wright and Julia Zislin in Ontario, claims "that UPS failed to obtain consumers’ consent to act as a customs broker; to disclose the existence and/or amount of the brokerage fee; and to provide consumers with the opportunity or disclose to them how to arrange for customs clearance by themselves."

It is possible for the recipient to avoid these brokerage fees if the parcel is being shipped by a UPS "express" (premium) service, that is, another service other than UPS Standard (Ground). Fees may also be avoided if the recipient clears the parcel themselves at a CBSA office.

This distinction is not limited to Canada, or to UPS. As a rule, "mail" import procedures in all countries apply only to items imported by mail, i.e., originated by the exporter's local postal authority (for Canadians, commonly USPS
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...

) for delivery by the importer's local postal authority (Canada Post); they do not apply to shipments made by courier services such as UPS, FedEx
FedEx
FedEx Corporation , originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee...

, or DHL
DHL
DHL Express is a division of the German logistics company Deutsche Post providing international express mail services. DHL is a world market leader in sea and air mail....

. For example, this distinction is specifically noted by U.S. Customs and Border Protection
U.S. Customs and Border Protection
U.S. Customs and Border Protection is a federal law enforcement agency of the United States Department of Homeland Security charged with regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations, including trade, customs and immigration. CBP is the...

 (CBP) in its website's page on Internet purchases imported into the United States; it also warns that imports by courier may come with "higher than...expected" brokerage fees that "sometimes exceed the cost of (the) purchase", and that prepaid shipping charges on imports by courier normally do not include duties or brokerage fees. (The distinction may be sharper in the U.S. because CBP normally waives duties on mail imports of up to US$200 per day, but not on courier imports of any amount. Use tax
Use tax
A use tax is a type of excise tax levied in the United States. It is assessed upon otherwise "tax free" tangible personal property purchased by a resident of the assessing state for use, storage or consumption of goods in that state , regardless of where the purchase took place...

, the U.S. equivalent of GST, is collected only by the states, not by CBP or shippers.) What makes this case unique is that UPS charges a substantial brokerage fee on ground shipments to Canada, when other Canadian small-package services apparently charge nothing (UPS "express" services) or a minimal fee (Canada Post).

Fuel economy

In 2004 UPS announced that they would save fuel by minimizing left turns. Because drivers are idle at intersections while waiting to make left turns, UPS developed software that routes the day's packages with preference to right turns. Since UPS operates a fleet of over 100,000 ground vehicles, the fuel savings are considerable. In 2005, UPS eliminated 464000 miles (746,733.8 km) from its travel and saved 51000 gallons (193,056 l) of fuel.
UPS is also utilizing hybrid electric vehicles (HEV) for local deliveries only. As of May 22, 2007, the company has 50 deployed in Atlanta, Dallas, Houston, and Phoenix. The 50 HEVs are expected to cut fuel consumption by 44000 gallons (166,558.1 l) per year.

Environmental record

UPS has 94,600 vehicles in operation. In May 2008 UPS placed an order for 200 hybrid electric vehicle
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...

s (adding to the 50 it has currently) and 300 compressed natural gas
Compressed natural gas
Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

 (which are 20% more fuel efficient, and add to the 800 it already has) vehicles with from Daimler
Daimler
- Daimler with reference to motor vehicles :refers to:* Gottlieb Daimler , German automobile inventor- Business co-founded by Gottlieb Daimler :...


Trucks North America.

UPS received a "striding" rating of 76 points out of 100 totals on the environmental scorecard by the Climate Counts Group for their efforts to lessen the company's impact on the environment. UPS has also been awarded the Clean Air Excellence Award by the United States Environmental Protection Agency
United States Environmental Protection Agency
The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...

 because of the alternative fuel program they have developed.

In October, 2009, UPS became the first small package carrier to offer customers the chance to buy carbon offset
Carbon offset
A carbon offset is a reduction in emissions of carbon dioxide or greenhouse gases made in order to compensate for or to offset an emission made elsewhere....

s to neutralize the greenhouse gas emissions generated by the transport of their packages. Although initially only available on ups.com and to high-volume shippers, they are now widely available through UPS shipping systems and UPS Ready third party shipping systems.

Employee theft

UPS has an ongoing history of its employees stealing firearms while in transit to licensed firearm dealers. In 1999, in response to these thefts, UPS issued a policy that all handguns must be shipped overnight. "We're trying to protect ourselves from employees stealing and criminals stealing." UPS spokesman Bob Godlewski said.

See also

  • Big Brown
    Big Brown
    Big Brown is a retired champion American Thoroughbred racehorse and winner of the 2008 Kentucky Derby and 2008 Preakness Stakes. Bred by Dr. Gary B. Knapp's Monticule Farms in Lexington, Kentucky, he won his first five race starts. He was sired by Grade III winner Boundary, a son of North American...

     – 2008 Kentucky Derby
    Kentucky Derby
    The Kentucky Derby is a Grade I stakes race for three-year-old Thoroughbred horses, held annually in Louisville, Kentucky, United States on the first Saturday in May, capping the two-week-long Kentucky Derby Festival. The race is one and a quarter mile at Churchill Downs. Colts and geldings carry...

     and Preakness winner; named after the company
  • Freight company
    Freight company
    Freight companies are companies that specialize in the moving of freight, or cargo, from one place to another. These companies are divided into several variant sections...

  • Freight payment service
    Freight payment service
    Freight Payment ServiceThe freight payment industry was actually formed by a series of Banks when the transportation marketplace was heavily regulated. Motor carrier bills had to be paid within 7 days and rail bills needed to be paid within 5 days...

  • Incoterms
  • List of United Parcel Service hubs
  • MaxiCode
    MaxiCode
    MaxiCode is a public domain, machine-readable symbol system originally created and used by United Parcel Service. Suitable for tracking and managing the shipment of packages, it resembles a barcode, but uses dots arranged in a hexagonal grid instead of bars...

     – A UPS developed and utilized square barcode-like symbol that appears on their package label

Further reading

  • "Insourcing," Thomas L. Friedman
    Thomas Friedman
    Thomas Lauren Friedman is an American journalist, columnist and author. He writes a twice-weekly column for The New York Times. He has written extensively on foreign affairs including global trade, the Middle East, and environmental issues and has won the Pulitzer Prize three times.-Personal...

    , The World Is Flat: A Brief History of the Twenty-First Century, New York: Farrar, Straus and Giroux, updated and expanded, 2006, pp. 167–176.
  • "Big Brown: The Untold Story of UPS" Niemann, Greg. John Wiley & Sons, 2007.
  • "Driving Change: The UPS Approach to Business" Brewster, Mike and Frederick Dalzell. New York: Hyperion, 2007.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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