Sustainable Supply Chains:
How New Mobility Strategies and Technologies Are Changing Goods Movement
UMTRI; Wednesday February 17, 2016
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
2
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
3
UPS is Committed to More™
Connected
Community
Empowered
People
Economic
Enhancement
Environmental
Responsibility
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
4
Environmental
Responsibility
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
5
Approximate age of the Earth (in Seconds):
145,065,600,000,000,000
Number of ways to
deliver 120 stops:
6,689,502,913,449,135,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000
6
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
ORION: On-Road Integrated Optimization and
Navigation
» Leveraging Technology to Travel
Fewer Miles
» ORION Analyzes stops for the day
and identifies an optimized route
» 2014: Deployed to 23,000 U.S.
Drivers
 Realized a six- to eight-mile
reduction per route
» 2016: Deployed to all U.S. Drivers
» Savings at Full Deployment:
Annually:
 100 million miles
 100,000 CO2 metric tonnes
 10 million gallons of fuel
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
7
UPS: a Rolling Laboratory Testing New Technologies in Real Time
Utilizing an Alternative Fuel and Advanced Technology Fleet
We are Moving More Volume and Emitting Less Carbon
UPS: Billion mile Goal via Alternative Fuel
Vehicles by 2017*
*On-Road vehicles only
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
8
Empowered
People
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
9
UPS Drivers Are Key
to Sustainability,
Safety, and Service
» Sustainability
•
•
One-Driver Network
Intermodal Network

•
Air-to-Ground, Ground-to-Rail
Trained in fuel efficiency techniques
» Safety
•
•
$175 million invested in 200+ training
courses
7,878 Circle of Honor drivers

25 years without an avoidable accident
» Service
•
Delivery precision gained through
experience

Thomas Camp — 52 years of
accident-free driving with UPS,
the highest of any driver.
Training, ORION, Telematics, etc
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
10
Connected
Community
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
11
The UPS Foundation: 2014 Highlights
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
12
Economic
Enhancement
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
13
The Road to a Sustainable Supply Chain
Measure
Manage
Mitigate
Market
Conduct accurate,
verified and certified
analysis to measure
transportation CO2e
emissions
Offer services and
choices to help
reduce climate
emissions
Offset remaining
emissions
Build your
reputation for
environmental
responsibility
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
Measure | Carbon Impact Analysis
» Utilizes UPS Carbon Emissions
Calculator to provide accurate, verified,
and certified measurement of
transportation CO2e emissions
» Provides detailed view by emissions
scope and transportation mode
» Customizes reports to your business
designations
» Calculates offsets needed to mitigate
your emissions
CO2e includes all seven greenhouse gases,
allowing for a proper accounting of where the
fuel was burned.
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
15
Manage | Sustainable Shipping Solutions
Supply Chain Optimization
Supply chain optimization services include
warehouse and
network optimization to help create efficiencies
and reduce impact across your enterprise.
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
16
Manage | Changing the Future of Logistics
3-D Printing
UPS and CloudDDM partner to provide 3D Printing with
industrial speed, scale and quality
&
Industrialscale
on-demand
3D-printed
parts
Greater supply
chain efficiencies
via rapid
prototyping and
virtual inventory
Global footprint and
express delivery network
provide new supply
chain alternatives and
increased efficiencies
Parts ordered by 9PM EST can be delivered as early
as next day 8AM EST
ups.com/sustainability
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2014 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
17
Manage | Optimized Packaging Solutions
Minimize the Environmental Impacts of Packaging
• Corrugate reduction: 52 sq.ft.
• Corrugated weight reduction: 5.4 lbs
• Volumetric Package reduction: 10 ft³
• Transportation savings; moving smaller, more-dense packages
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
18
Mitigate | Carbon Neutral Shipping
» Any UPS shipments to
anywhere in the world
» Nominal fee covers the
offset cost plus carbon
calculation
» Flexible Options
 Per-package basis
 Contractual basis
» SGS Verification & The
Carbon Neutral Company
Certification
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
19
Market| Sustainable Shipping Options
Help Consumers Minimize the Environmental Impacts of Their
Supply Chain.
UPS My Choice™
UPS Smart Pickup™
UPS Access Point™
Allows your customers to
control delivery time
and location
Schedules a pickup only
when needed
Provides your customers
a centralized location
for package pickup
and delivery
Result: Fewer Trips, Less Fuel, Reduced Emissions
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
20
UPS is Committed To More
Connected
Community
Empowered
People
Economic
Enhancement
Environmental
Responsibility
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
21
Learn More
ups.com/sustainability
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
22
Appendix
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
23
Recognition for Sustainability
Dow Jones
Sustainability
Index
US EPA
CR Magazine
The Civic 50
Climate
Leadership
Award
100 Best
Corporate
Citizens
Most
CommunityMinded
Companies
Interbrand
Ethisphere
CDP
Best Green
Brands, Best
Global Brands
World’s
Most Ethical
Companies
Fortune
Magazine
World and
North America
World’s
Most Admired
Companies
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
Global 500
Climate
Disclosure
Leadership
Index
24
A Well-Defined Greenhouse Gas Strategy
We measure every
source of GHG
emissions associated
with UPS and address
them all through our
Greenhouse Gas
Reduction Strategy.
This worldwide,
enterprise-wide
approach helps us
reduce emissions from
transportation operations
and facilities, as well as
those associated with
customers and suppliers
in our value chain.
ups.com/sustainability
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
25