Intermodal - The Center for Logistics, Trade and Transportation

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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
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Logistics Keeps the World Moving
Intermodal Transportation
Agenda
• Intermodal Evolution
• Package Services
• Innovative Technology
• Freight Services
• Shipment Consolidation
• Customs Brokerage
• Sustainability
• Region Profiles
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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.
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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.
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Supply Chain Evolution
Supplier
Manufacturer
Distributor
Retailer
End
Consumer
Information
Goods
Funds
Supplier
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Manufacturer
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Distributor
Retailer/E-tailer
End
Consumer
Global Sourcing / Distribution Model (1990’s)
1990’s
O
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Global Sourcing / Distribution Model (2000 – 2008)
Slow boat
from China –
causing large
warehouses
2000-2008
O
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Global Sourcing / Distribution Model (2009 - 2012)
2009-2012
O
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JIT reintroduced –
excess warehouse
space / consumer
demand down
Map out Existing Network to Visually Understand
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Intermodal Capabilities
World’s Largest Transportation Company
The new logistics model from UPS
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Package
Freight
Contract Logistics
• Express
• Air
• Warehousing
• Deferred
• Cargo
• Distribution
• Day-Definite
• Ocean
• Service Parts Logistics
• Road
• Supply Chain Management
and Consulting
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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
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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
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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
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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
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Package Services
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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
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Get More Done Faster
• When speed is a priority, UPS’s international time-definite express portfolio
offers the best options
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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
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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
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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.
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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.
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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
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Innovative Technology
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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Freight Services
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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
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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
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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
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FEATURES
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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.
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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.
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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
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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
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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
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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
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Shipment Consolidation
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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
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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
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World Ease® — Streamlines Package
Supply Chain – True Intermodal
• Consolidates customs clearance to help cross borders with ease
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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
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UPS Trade Direct® — Streamlines Freight
and Package Supply Chain - Intermodal
• Serves as business rolling, floating and flying warehouse to get goods
to market efficiently
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Customs Brokerage
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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
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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
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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
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Sustainability
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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
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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/>.
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Region Profiles
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Asia Pacific Capabilities
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Canada Capabilities
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Europe Capabilities
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Latin America Capabilities
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Thank You
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