UPS delivers over 16.3 million packages and documents. Its fleet of cargo planes quickly and safely ensures the delivery of its customers’ cargo to locations around the world. (Picture provided by UPS Taiwan) Success Story 15 : United Parcel Service (U.S.) United Parcel Service Driving the Asia-Pacific Economy through Logistics In recent years, Taiwan has taken an active role in becoming integrated into the global economic and trade systems, with significant improvements to logistics, international cash flows and talent flows which creates new development opportunities. For this reason, United Parcel Service, Inc. (UPS) deployed large cargo planes in order to meet its increasing business needs. Through the concerted effort of UPS Taiwan’s staff, at the end of 2012, the company became the first in industry to obtain the Authorized Economic Operator (AEO) certification of forwarding, customs clearance and warehousing certification in Taiwan at the same time. 274 Success Stories UPS UPS Worldwide Express Freight (WWEF) service is able to more quickly and deliver pallet shipment weighing over 70 kg, enabling customers to save both time and money. (Picture provided by UPS Taiwan) The movement of goods or information has been crucial throughout human history. Established in 1907 UPS is devoted to providing human beings with the best logistics ser vice experiences. As one of the global leading logistics firms, UPS provides the network that spans the globe, through its air, sea and ground transportation, offering service in more than 220 countries and territories ranging from document and parcel delivery, to supply chain management. Every day, UPS delivers over 16.3 million packages and documents, and has 8.8 million daily users. Opportunities Built on Taiwan's Market Niche From its origins in the United States, UPS now operates in more than 40 Asia-Pacific countries and territories, with over 275 III General Manager of UPS Taiwan Anita Li, with her keen sense of market requirements, leads the company in staying ahead of the market. (Picture provided by UPS Taiwan) UPS DIAD V enables shipping and cargo handlers to track cargo and deliver y status in real time. (Picture provided by UPS Taiwan) 15,000 staff. UPS manages nearly 2,000 truckloads and more than 300 cargo flights per day. UPS set up its first Asia Hub in Taiwan in 1996. Charged with handling transshipment through, to and from Asia and Europe and the Americas, this center employed customs and aviation police staff on site, and featured advanced systems to significantly increase the efficiency of customs clearance for over 2,000 pieces of shipments per hour. With 28 weekly flights to and from Taiwan, UPS Taiwan has nearly 900 employees, and 8 service centers located in Taipei, Taoyuan, Hsinchu, Taichung, Tainan, and Kaohsiung. Moreover UPS works with 2800 FamilyMart convenience store outlets to provide UPS 24-hour express shipments’ pick up service throughout Taiwan. After 25 years in Taiwan, UPS continues to invest in its local operations; cultivating more local talents and 276 Success Stories UPS “In every connection we make, go further, so our customers can do more,” says General Manager of UPS Taiwan Anita Li. (Picture provided by UPS Taiwan) helping Taiwanese enterprises expand their global business. Anita Li, General Manager of UPS Taiwan, is originally from Hong Kong and with a Bachelor’s degree in English and Economics. She speaks f luent English and Chinese and has exceptional analytical skills and logistical knowledge. In 2000, Anita joined UPS in Hong Kong as Air Operations Supervisor. Her outstanding perfor mance in this position soon ear ned her promotion to Region Gateway Manager of APAC, Senior Manager of Air Operations, and took on a Special Assignment with the Intra Asia Project, and thereafter she served as Senior Manager of Air Hub Operations. In January 2011, Anita formally took on her new role as General Manager of UPS Taiwan. Today, after nearly three years in Taiwan, Anita notes that over 60% of Taiwan’s enterprises are associated with high-tech products, which makes up 95% of Taiwan’s global exports. She 277 III UPS Taiwan obtained forwarding, customs clearance and warehousing certification as an Authorized Economic Operator (AEO) in December of 2012. (Picture provided by UPS Taiwan) stresses that UPS sees opportunities in niche markets in Taiwan, especially given Taiwan’s active push to integrate itself into the international trade system, including the development of the “Cross-Straits Economic Cooperation Framework Agreement,” its promotion of free-trade zones, and the signing of a trade pact with New Zealand in July this year. These actions have had a positive impact on the f low of goods, capital and talent, helping Taiwan develop new oppor t u nities for economic development. “UPS’s commitment to and confidence in Taiwan is demonstrated by the company’s deployment of larger-sized cargo aircraft in Taiwan,” she said. UPS is the world’s top logistics group. In fact, observing UPS’s operations provides a unique insight into changes in global business. “The shift of focus of the overall economic environment, starting from Europe and the US to the AsiaPacific region, has been the largest driver of the global trade 278 Success Stories UPS UPS observes Global Volunteer Month (GVM) every October. UPS Taiwan actively par ticipates through direct volunteer action and giving to charity. (Picture provided by UPS Taiwan) battlefield,” said Anita. For m i n g Pa r t ne r sh i p s for P r e fe r e nt i a l C u s t om s Clearance Once Taiwan operations had been set on a firm footing, Anita followed her insight into future market demands to apply for Authorized Economic Operator (AEO) certification. Through the unceasing effort of the entire staff, at the end of 2012, UPS Taiwan became the first logistics company in Taiwan to obtain the AEO certification of forwarding, customs clearance and warehousing at the same time. Fat e favor s t he wel l- p r e p a r e d , a c c ord i ng t o A n it a . “Everything has to be done faster and better to stay out in front of market demand,” said Anita. Over time, innovation and market changes will drive policy and system reform in every country. UPS has already made advance preparations for 279 III contingencies and events which governments and the markets have yet to anticipate. “UPS’ valued proposition will always lead the market,” she said. UPS Taiwan gaining AEO certification clearly shows that the company conforms to the World Customs Organization’s (WCO) standards framework for promoting safety and efficiency in world trade. Through striking partnerships with national customs agencies, UPS Taiwan has achieved its objectives of enhancing the security and convenience of international trade. These partnerships allow the company to provide its customers with preferential treatment for the fastest customs clearance and inspections available, thus ensuring their supply chains operate with maximum efficiency. T he logistics i ndust r y is a const ant race agai nst the clock, and UPS lives by its creed: “Safe, Fast and On Time”. This commitment to excellence has made the company an indispensible partner for Taiwan’s small and medium sized enterprises (SMEs). Anita noted, “Business from SMEs make up more than 90% of the revenue of UPS Taiwan – these companies are our bread and butter.” To satisfy the diverse needs of Taiwan’s SMEs, UPS Taiwan has differentiated itself from other operational areas through the provision of customized services. It was a huge challenge to put these services into operation, and one of the company’s greatest achievements. Anita noted, “Every decision made at UPS is made with the customer’s benefit in mind. “Any time a customer 280 Success Stories UPS UPS Global Volunteer Month activities include employees providing volunteer services to local communities, and bringing a positive energy to help society. (Picture provided by UPS Taiwan) has a requirement, UPS has the wherewithal to deliver tailormade solutions.” Anita took UPS’s “Preferred Less-Than-Container-Load (LCL) Ocean Freight” as an example. This service expanded to Taiwan in March 2011, potentially cut a typical 3-to-4 week ocean transit time nearly in half. Once the shipment arrives on the US west coast, the cargo is processed through the UPS North American ground network utilized for air freight shipments. This significantly narrows the speed/price gap between air and ocean freight services, reducing the average port to door shipment time by up to 40%. “This service provides a faster delivery than sea freight, at a price lower than air freight. UPS is pulling out all the stops to allow us to provide our customers with better services,” said Anita. 281 III U P S Ta i w a n d o n a t e s a s s i s t i v e d e v i c e s t o t h e Ta i w a n M o t o r Neuron Disease Association during U P S G l o b a l Vo l u n t e e r M o n t h . (Picture provided by UPS Taiwan) General Manager of UPS Taiwan Anita Li remarks that “UPS isn’t just selling logistics ser vices, i t i s p rovi d in g t h e va lu e of t h e accumulated experience of UPS.” (Picture provided by UPS Taiwan) Growing Together with Taiwan Enterprises, Expanding into Emerging markets UPS is always looking for new ways to give its customers more f lexibility and choice. Realizing the market potential of saving time, in January 2013 UPS announced Worldwide Express FreightSM in Asia, for faster international delivery of pallet shipments. Anita explained that this service allows customers to ship pallets over 70 kg through the UPS air cargo network from 37 export points to 41 destination countries and territories. This service guarantees deliveries of 1-3 working days depending on destination, making it the only logistics company providing the time-definite pallet shipping option with guarantee refund. Anita emphasized, “UPS isn’t just selling logistics services. It is providing the value of UPS’s accumulated experience. 282 Success Stories UPS Changes in market trends drive changes to local requirements. The value UPS provides is through our patient dedication to meeting our customers’ requirements. UPS is in the business of doing what our competitors can’t.” UPS Taiwan’s business philosophy is based on three core concepts: “Stay ahead of the customer,” “Provide customized services,” and “Grow with the customer.” As the str ucture of the global supply chains changes, new destinations are increasing in logistical importance, with increased traffic to Latin America, Saudi Arabia and other emerging markets. Due to the variation of local regulations, a fast international delivery can be slowed by difficult customs clearance. UPS’s international network effectively helps its clients ensure smooth and fast clearance and delivery, making UPS Taiwan the ideal logistical partner for Taiwanese firms as they expand their international reach. 283 III