Intermodal Transportation Curriculum for Secondary Education – Pilot Study MODULE 5: Successful Handling of Intermodal Operations at UPS WORKSHOP October 22 & 23, 2012 - Trent Lott Center, University of Southern Mississippi Prepared By: Ms. Jennifer Steele, Manager, UPS Mr. Stuart McAvoy, Customer Solution, UPS 0 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Logistics Keeps the World Moving Intermodal Transportation Agenda • Intermodal Evolution • Package Services • Innovative Technology • Freight Services • Shipment Consolidation • Customs Brokerage • Sustainability • Region Profiles 2 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE What is Wikipedia’s Definition of Intermodal Freight? • Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (rail, ship, and truck), without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damage and loss, and allows freight to be transported faster. Reduced costs over road trucking is the key benefit for intracontinental use, as well as reduced greenhouse gas emissions 1. This may be offset by reduced timings for road transport over shorter distances. 3 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Wikipedia’s Definition of the Origin of Intermodal? • Jack Purcell McLean (born “Jack”; but late in life he changed his given name to its historic traditional Scottish spelling) (September 27 1734 – September 27, 1735), he was born in Maxton, North Carolina, was an American entrepreneur, often — albeit inaccurately — called "the father of containerization" — inaccurate since the concept was developed more than 100 years previously on the railways of Britain (following even earlier attempts on the canals). In 1956, McLean developed the metal shipping container, which replaced the traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. He later founded Sea-Land Service, Inc., one of the pioneers in the intermodal cargo transport business.1 McLean was named "Man of the Century" by the International Maritime Hall of Fame. He and his sister, Clara McLean, and brother, Jim McLean, founded McLean Trucking Co. 4 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Supply Chain Evolution Supplier Manufacturer Distributor Retailer End Consumer Information Goods Funds Supplier 5 Manufacturer CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Distributor Retailer/E-tailer End Consumer Global Sourcing / Distribution Model (1990’s) 1990’s O 6 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Global Sourcing / Distribution Model (2000 – 2008) Slow boat from China – causing large warehouses 2000-2008 O 7 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Global Sourcing / Distribution Model (2009 - 2012) 2009-2012 O 8 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE JIT reintroduced – excess warehouse space / consumer demand down Map out Existing Network to Visually Understand 9 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Intermodal Capabilities World’s Largest Transportation Company The new logistics model from UPS 10 Package Freight Contract Logistics • Express • Air • Warehousing • Deferred • Cargo • Distribution • Day-Definite • Ocean • Service Parts Logistics • Road • Supply Chain Management and Consulting CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE The Most Powerful Force in Business Today • Business grows more global daily • Old markets change, new markets appear • Customers expect more — in less time, for less money • How do businesses gain a competitive advantage? • Logistics — the most powerful force in business today 11 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Expand Business Global Reach • Large business or small, logistics helps businesses reach 220 countries and territories ─ Access more markets, spur greater growth • Large coverage with the world’s largest transportation company • World’s largest customs brokerage network optimizes clearance 12 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Balance Speed with Cost • When counting minutes or counting costs, logistics gives more flexibility ─ Multiple transportation modes allow for multiple delivery options ─ Shipments arrive at the right time at the right cost with Intermodal Options • Packages or pallets • Import or export 13 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Streamline Daily Processes • Driving greater efficiency, logistics opens up more possibilities for international business ─ Innovative software and Web-based technologies help businesses get more done with less, inside and outside the office • One system for shipping package and freight saves time and money • Easy access and distribution of critical data improves visibility and compliance • Enhanced reporting and quick delivery confirmations simplify invoicing and speed cash flow 14 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Package Services 15 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE A Package Service for Every Need • UPS delivers more guaranteed packages on time around the world than any other carrier ─ That’s logistics opening up more opportunities for business worldwide • Three time-definite express options to more international locations than anyone ─ Balance budgets with deadlines to get the service you and customers need 16 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Get More Done Faster • When speed is a priority, UPS’s international time-definite express portfolio offers the best options 17 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Business Starts Early Worldwide • UPS delivers to more countries from the U.S. by 9:00 a.m. and before noon than any major carrier • Earlier deliveries provide a faster start to the day for business • Allows business to meet challenging deadlines 18 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Flexible Deadlines, Cost-Effective Deliveries • Guaranteed choices for both overseas deliveries and within North America when speed isn’t the top priority SERVICES UPS Worldwide Expedited® FEATURES Customs-cleared delivery within 2-5 business days to and from 70 countries and territories Guaranteed ground delivery within 2-7 business days to and from the U.S. with coverage of: UPS Standard • Every Canadian province • All of Mexico, and the industry’s only U.S.-to-Mexico ground package service 19 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE When Shipments are Urgent UPS Express Critical® • UPS Express Critical gives a next-flight-out option 24/7/365 for shipping anytime, anywhere* ─ Secure solutions include bonded couriers, armored cars and special packaging to control high-value shipments ─ Full, online visibility for tracking and delivery confirmation for peace of mind ─ Specialized equipment available to handle a broad range of requirements ─ Import/customs clearance services for expedited processing * For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations. 20 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Business Can Take Control of Imports • Import Freight Collect ─ Billed with rates fixed in U.S. dollars* ─ Protects from currency fluctuations ─ Keeps import costs in check • UPS Import Control® ─ Allows Business to take charge of the shipping process with the most comprehensive import delivery solutions ─ Initiate shipments from another country ─ Complete paperwork “in house” to ensure compliance ─ Use option to remove commercial invoice prior to third-party delivery so value of goods is not revealed *Rates are fixed relative to currency fluctuations, but are subject to periodic review by UPS. 21 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Act as Importer and Exporter Non-Resident Importer (NRI) to Canada • Act as both U.S. exporter and Canadian importer of record • Export to Canada without the expense of a physical location • Offer customers seamless service with an all-in-one price 22 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Innovative Technology 23 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Advanced Technology Maximizes Daily Efficiency • Logistics keeps business moving without leaving your desk • UPS software and Web-based solutions: ─ Expedite shipment processing ─ Enhance visibility ─ Improve compliance ─ Simplify billing and accounting 24 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Streamline the Shipping Room and Beyond • Integrate UPS technology tools into business systems and processes to better manage shipments — inbound and outbound, package and freight • Enhance productivity by better managing delivery information in the shipping room and in departments such as: ─ Customer Service ─ Finance and Accounting ─ Inventory and Production Management ─ Information Technology 25 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE One System for Package and Freight UPS WorldShip® • Use one technology platform to simplify shipping across all international locations • WorldShip software processes both package and freight, saving time and money • The single automated system makes it easier to ship, track, train personnel and integrate information with business systems • Displays UPS published rates or customized rates with a built-in calculator • Supports 129 countries in 16 languages 26 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Reduce Holds Up to 56 Percent UPS Paperless® Invoice • Helps reduce the chance of errors, improving compliance to expedite customs clearance, while saving paper: ─ UPS Paperless Invoice, an industry first, transmits commercial invoice data on package and air freight shipments to customs offices around the globe • Can reduce customs holds 56 percent, minimizing costly delays and increasing timely deliveries • Begins the customs clearance process earlier • Cuts processing hours and paper waste • Does not reveal commercial invoice and shipment value to consignee • Is available for package and freight in multiple automated shipping systems 27 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Complete Visibility Quantum View® Manage • Complete visibility for both package and freight makes business more productive – inbound and outbound: ─ Quantum View Manage provides up-to-date information on all shipments via e-mail notification • Imports view offers access to customs brokerage data to facilitate clearance and compliance • Monitor multiple shipments across multiple accounts without tracking numbers • Available worldwide in multiple languages 28 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Complete Visibility – Package/Freight Flex® Global View • Complete visibility for both package and freight makes business more productive: ─ Flex Global View provides an integrated view of supply chain 24/7 • Event-management and visibility tool lets business react faster to orders and inventory levels • Proactive e-mail alerts notify business of events and exceptions to meet customer needs quicker • Standard and customized reports streamline data analysis 29 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Simplify and Improve Compliance UPS TradeAbility® • Gives business a competitive advantage with resources that help facilitate compliance for fast clearance when crossing borders: ─ UPS TradeAbility offers a suite of free informationbased services • Access the latest regulations and forms to improve compliance • Review estimates of landed costs before shipments leave dock to control expenses • Stay current on the latest security requirements to help eliminate surprises 30 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Reverse Logistics UPS Returns® • An industry first, UPS Returns expands reach with service to 110 countries and territories: ─ Helps reduce costs and the hassle of processing international returns ─ Simplifies customer experience by providing return labels and commercial invoices in outbound packages or by e-mail ─ Can coordinate return even when UPS wasn’t the original shipper 31 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE A Comprehensive Portfolio of UPS Returns® Service Options • UPS will help business accommodate the needs of all their customers, making returns as easy as possible, even overseas • Options vary based on origin and destination countries UPS Returns Service Options 32 Print Return Label Business prints a label that is included on the outbound shipment. Electronic Return Label UPS e-mails the return label to the customer. Print and Mail Return Label UPS prints and mails the return label to the customer. Web-based Label Business prints a Web-based label, which enables their customer self-service. 3 UPS Pickup Attempts UPS makes three attempts to deliver return label and pick up the package. 1 UPS Pickup Attempt UPS leaves the return label at the pickup location after one attempt. CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Freight Services 33 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Moving Freight Efficiently • UPS offers a full range of freight options from critical to routine freight services ─ As the world’s largest transportation company and with one of the largest airlines, UPS’s global presence and access to preferred carriers is dynamic ─ Benefit from cost alternatives and adaptability with the speed of air freight and the economy of ocean ─ Logistics offers freight customers UPS reliability and flexibility on a larger scale 34 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Delivering a Global Advantage • A leader in international air freight forwarding • Complete end-to-end solutions available, including door-to-door delivery and customs brokerage • Customers can combine package and freight services for greater supply chain efficiency and cost-effectiveness 35 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Easily Meet Market and Customer Demands • UPS offers day-definite and time-definite International Air Freight delivery options SERVICES DESTINATIONS Transit days and times depend on destination UPS Express® Freight 1-3 business days To Africa, Asia Pacific, Europe, Latin America, Middle East Guaranteed door-to-door delivery to most major metro areas worldwide; pickup, delivery and routine customs clearance included UPS Air Freight Direct® 1-3 business days UPS Air Freight Consolidated® 3-5 business days 36 FEATURES CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Airport-to-airport delivery included; pickup, delivery and customs clearance optional UPS Air Freight Service Options to and from Destinations Worldwide Multiple Options to Meet Many Demands SERVICES FEATURES Transit days and times depend on destination UPS Express Critical®* Next flight out UPS Express® Freight 1-3 business days UPS Air Freight Direct® 1-3 business days UPS Air Freight Consolidated® 3-5 business days Within North America and between major metro areas worldwide, available 24/7/365 Guaranteed door-to-door delivery to most major metro areas worldwide; pickup, delivery and routine customs clearance included Airport-to-airport delivery included with dayspecific scheduling; pickup, delivery and customs clearance optional Airport-to-airport delivery included with dayspecific scheduling; pickup, delivery and customs clearance optional * For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations. 37 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Easily Meet Market and Customer Demands • UPS offers day-definite and time-definite International Air Freight delivery options SERVICES DESTINATIONS Transit days and times depend on destination UPS Next Day Air® Freight Noon or 5:00 p.m. To Canada, Puerto Rico, within the U.S. UPS 2nd Day Air® Freight Noon or 5:00 p.m. UPS 3 Day Freight® 5:00 p.m. 38 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE FEATURES Guaranteed to most major metro areas in U.S. 48, Canada (excluding intra-Canada) and Puerto Rico; non-guaranteed service (NGS) to most areas in U.S. 50, Canada and Puerto Rico Guaranteed and nonguaranteed service (NGS) within 3-4 business days to most areas in U.S. 48, Canada and Puerto Rico UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto Rico Multiple Options to Meet Many Demands SERVICES FEATURES Transit days and times depend on destination UPS Express Critical®* Next flight out UPS Next Day Air® Freight Noon or 5:00 p.m. UPS Next Day Air® Freight NGS** Noon or 5:00 p.m. Within North America and between major metro areas worldwide, available 24/7/365 Guaranteed to most major metro areas in U.S. 48, Canada and Puerto Rico Delivery to most areas in U.S. 50, Canada and Puerto Rico continued • For more information, please contact us via e-mail at expresscritical@ups-scs.com, or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations. **Non-Guaranteed Service 39 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto Rico Multiple Options to Meet Many Demands SERVICES Transit days and times depend on destination FEATURES UPS 2nd Day Air® Freight Guaranteed to most major metro areas in U.S. 48, Canada and Puerto Rico Noon or 5:00 p.m. UPS 2nd Day Air® Freight NGS* Noon or 5:00 p.m. UPS 3 Day Freight® 5:00 p.m. UPS 3 Day Freight® NGS* 5:00 p.m. *Non-Guaranteed 40 Delivery to most areas in U.S. 50, Canada and Puerto Rico Guaranteed delivery within 3-4 days to most areas in U.S. 48, Canada and Puerto Rico Delivery within 3-4 days to most areas in U.S. 48, Canada and Puerto Rico Service CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Single Source for Global Ocean Freight • A leading Non-Vessel Operating Common Carrier (NVOCC) and freight forwarder • Offers more buying power and the flexibility to choose based on timing, cargo size and routing needs • Handling more than 600,000 TEUs annually including: ─ Less-than-container loads ─ Full containers ─ Special equipment ─ Oversized cargo • UPS Preferred LCL can increase speed to market up to 40 percent while minimizing cost 41 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Shipment Consolidation 42 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Consolidate Shipments, Shorten Supply Chains • Logistics has business covered end to end • Streamline supply chain and customs clearance whether shipping packages, freight or a combination ─ Individual shipments to same destination country or European Union grouped as one shipment ─ UPS handles pickup, transportation, deconsolidation and delivery ─ Reduce time to market and eliminate need for distribution centers 43 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Consolidated Clearance of Packages World Ease® • Send packages to multiple recipients in same country or the European Union • Ship and clear customs as a single transaction • Extends global reach without start-up costs and international warehousing • One shipment with one customs entry simplifies processing and managing shipments 44 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE World Ease® — Streamlines Package Supply Chain – True Intermodal • Consolidates customs clearance to help cross borders with ease 45 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Consolidated Clearance of Freight and Package UPS Trade Direct® • Consolidates multiple package and freight shipments to the same destination • Clears as one shipment with one contact, one bill to pay • Streamlines supply chain and customs clearance • Reduces time to market, eliminates need for distribution centers • A choice of three services in three modes: ─ UPS Trade Direct® Cross Border – For North America ─ UPS Trade Direct® Ocean – From 70 ports worldwide ─ UPS Trade Direct® Air – For time-sensitive, high-value air freight from select airports worldwide 46 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE UPS Trade Direct® — Streamlines Freight and Package Supply Chain - Intermodal • Serves as business rolling, floating and flying warehouse to get goods to market efficiently 47 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Customs Brokerage 48 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Global Customs Broker • The world’s largest customs broker ─ Over 75 years of experience, helps reduce delays and red tape ─ Offices in more than 60 countries, provides vital knowledge of local customs processes • Customs Network includes transportation, as well as trade professionals and integrated technologies • Routine clearance included in most international package delivery rates 49 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Access International Support and Resources • Added security — UPS was first major carrier to become certified C-TPAT participant • Added information — Easily access information to facilitate global trade, often free of charge, with UPS TradeAbility® and UPS TradeSense® • Added guidance — Working relationship with U.S. Commercial Service provides proven resource and support conducting business worldwide 50 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Expand Exports to Grow Business Globally • UPS’s partnership with the U.S. Commercial Service enables business to: ─ Consult with a trade specialist • Uncover new opportunities in international markets • Develop export expansion strategy ─ Take advantage of resources in 107 U.S. cities and 78 countries • Trade counseling • Market intelligence • Business matchmaking • Commercial diplomacy 51 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Sustainability 52 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Greening Your Shipping and Business Processes • Logistics lets you grow green without sacrificing growth ─ UPS carbon neutral shipping option to conveniently offset climate impact on a per-shipment or contract basis ─ UPS Smart Pickup® to schedule a pickup only when needed, saving fuel, reducing equivalent carbon (CO2e) emissions ─ Eco Responsible Packaging Program to reduce the possibility of damage and help ensure sustainable materials ─ UPS Express® Reusable Envelopes to reduce waste, enabling two shipments using the same envelope ─ Alternative-fuel/technology fleet of more than 2,500 vehicles to reduce our emissions and yours ─ Analysis of driver behavior and package car mechanics to reduce idling time and avoid unnecessary mileage, saving more than 186,000 gallons of fuel in 2010 53 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Leading by Example • UPS ranked first in 2011 FORTUNE “World’s Most Admired” survey for the delivery industry, as well as first in the industry in Social Responsibility • Scored 99 out of 100 in the S&P 500 and Global 500 2011 Carbon Disclosure Leadership Indexes • Scored 81 in the 2011 Dow Jones Sustainability Index (DJSI) North America • Scored highest in Climate Counts consumer shipping category and 11th highest among all ranked companies Sources: World’s Most Admired Companies. UPS. FORTUNE. March 21, 2011. Web. August 19, 2011 < http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/2071.html>. CDP S&P 500 Report 2011, PricewaterhouseCoopers, pgs. 22, 23; CDP Global 500 Report 2011, PricewaterhouseCoopers, pgs. 23, 24. Company Benchmarking Scorecard, Corporate Sustainability Assessment 2011. United Parcel Service, Inc. SAM Research AG. <http://www.sam-group.com/int/sustainability-services/company-benchmarking-report.jsp>. Scorecard Sectors – Consumer Shipping. Climate Scores – Scorecard Overview.ClimateCounts.org. n.d. Web. December 7, 2011. <http://www.climatecounts.org/>. 54 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Region Profiles 55 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Asia Pacific Capabilities 56 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Canada Capabilities 57 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Europe Capabilities 58 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Latin America Capabilities 59 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE Thank You 60 CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE