UPS®:
Logistics in China
September 25, 2015
Agenda
• Our Current Situation
• Fast
Facts, Drivers of Opportunity
• Potential Outcomes
• How?
• Joint Opportunities
• Timing this Opportunity
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.
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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.
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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.
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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.
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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.
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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.
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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.
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Cost and complexity limit growth in global sales
Cross Border
e-Commerce
• Customer
acquisition
• Global
Cost
and
expansion
Complexity
• Fraud
• Customs
Brokerage
• Infrastructure
• Localization
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.
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Companies are beating you there now.
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.
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What’s the Answer?
Global e-Commerce Logistics Providers (G.E.L.P.s)
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.
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UPS i-parcel® solutions shift the balance in favor of global e-commerce
•
Easy-to-integrate, turn-key solution
•
Minimal up-front investment
•
Scalable options offer flexibility and control
•
Manages payment collection and fraud risk
•
Serves more than 102 countries and offers
more than 70 currencies (including China)
•
A range of shipping options that balance cost
versus speed
•
Combines technology innovation with UPS’s
complete logistics portfolio
International sales
• Customer
Acquisition
• Global
expansion
Cost and
complexity
• Fraud
• Harmonization and regulations
• Technology
development 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.
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Consumers benefit from a lower landed cost and a full range of trackable shipping options International
transportation
options up to
Shipping Option Comparison
60
%
less
High
less
Time-in-
Transit options from
2-8
Transportation Cost
UPS Worldwide
Express® Services
business days
Low
UPS i-parcel® Select
1
2
3
4
5
6
7
8
Business Days
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.
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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.
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China: UPS’s presence
•
Operational profile:
•
Established in 1988
•
Delivery to more than 300 cities in China
•
More than 200 weekly flights to/from China to the world
•
•
•
Shenyang
Tianjin
More than 100 UPS® operating facilities
Qingdao
Xian
Zhengzhou
Hefei
Nanjing
Changzhou
Wuxi
2 airport hubs
Additional UPS access points:
•
Dalian
Beijing
Chengdu
33 UPS Express® branches
Wuhan
Zhuhai
Shanghai
Hangzhou
Ningbo
Wenzhou
Fuzhou
Quanzhou
Xiamen
Dongguan
Shaoxing
Jiaxing
Chongqing
Guangzhou
Huizhou
Foshan
Jiangmen
Zhongshan
Key UPS Air Hubs
Nantong
Suzhou
Kunshan
Shenzhen
UPS Package Facilities
Sources: UPS Pressroom / http://www.pressroom.ups.com/Fact+Sheets/
UPS+China+Fact+Sheet
UPS Supply Chain Solutions® Sites
*Principal locations displayed
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.
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UPS Asia air network
Power across the region to help bring more value to your business
Anchorage
Europe
Qingdao
Zhengzhou
Chengdu
Dubai
Xiamen
Guangzhou
Seoul
Tokyo
Osaka
Shanghai
Taipei
Shenzhen
Rockford
Hong Kong
Mumbai
Honolulu
Clark
Cebu
Bangkok
Ontario
Guam
Newark
Louisville
Penang
Kuala Lumpur
Singapore
Jakarta
UPS express network
Key UPS Asia Pacific hubs
Zhengzhou
Sydney
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.
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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.
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Thank you
China country overview
Focus on improving industrial restructuring in order to maintain
economic growth and promote industrial upgrading
Major Cities
Shanghai 16.575 million; BEIJING (capital) 15.594 million; Chongqing 9.401 million; Shenzhen 9.005 million; Guangzhou 8.884 million (2011)
Area
9,596,961 sq km
Population
1.3 Billion
GDP
Growth
Merchandise
Imports
Merchandise
Exports
Industrial
Production Growth
Top Industries
2013
7.8%
2014
2015
8.0%
2013
3.6%
2014
2015
4.9%
2013
4.8%
2014
2015
4.6%
2013
7.6%
2014
2015
7.7%
8.2%
5.7%
6.4%
9.8%
World Leader In Gross Value Of Industrial Output; Mining And Ore
Processing; Machine Building; Armaments; Textiles And Apparel; Petroleum; Cement; Chemicals; Fertilizers; Consumer Products, Food Processing;
Transportation Sources: CIA World Factbook (https://www.cia.gov/library/publications/the-world-factbook/); Global Insight (Nov 2013)
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.
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