big brown boots up.
But perhaps the biggest electronics
Business players are not Microsoft, Intel, AOL, Amazon, or Internet stocks that punters are talking about.
While most companies are adapting to the Internet, UPS sees the opportunity to take a lead in the industry, in competitors such as FedEx, DHL and the government
Supporting competitorsU. S.
Postal Service (USPS)
And PTT around the world.
It competes with it.
Atlanta, last June
Based on private holding the company about 1998 of income $25 billion start your files exchange, a have zip your files by Internet to seconds for unit rather than relying on aircraft train or the company everywhere visible of shipping truck.
Prior to this, there were three options for the person who sent sensitive material: payment delivery service, fax or use emailmail.
The latter two lacked secrecy, and The Observer noted that a fax of up to 30% had to be resold.
FedEx and DHL have allowed customers to track packages on the Internet.
But UPS enters on-
Line service is the first step into the next phase of e-commerce
Said James P.
Kelly, chairman and CEO of the company.
UPS relies on Tumbleweed software and the software created by Net Dox, using encryption technology to allow customers to access digital fingerprints through the Web, so that only the sender and receiver know what was sent and who sent when-unlike e-
Mail and materials sent over the network.
Prices range from $1 to $10
Package delivery is far below UPS\'s minimum of $12.
Is UPS eating its core delivery business crazy? Maybe.
On the other hand, if analysts predict that
The third file is a network file.
Delivery is correct by next year, maybe not.
In the past decade, Big Brown has spent $9 billion on it and has begun competing with big blue for technology.
Last year, it invested $1 billion in this area, more than it spent on cars, almost as much as it spent on planes. (
UPS owns or orders 271 aircraft, plus 300 it charter flights, which operate the 10 th largest airline in the United StatesS. )
Its global telecom network connects users in 70 international regions, making UPS the world\'s largest cellular technology user.
At present, more than half of all shipment order information from customers is entered into the company electronically.
Consider UPS and 1.
6 million customers shipped 12.
1 million packages and documents per day, what is this saying.
The company is also testing new technology to enable drivers to immediately transfer shipment information to their hosts.
The backbone of all UPS Information Services consists of two data centers with 14 mainframes and a global network called UPSnet.
In fact, the company claims it operates the world\'s largest database of DB2 mainframes --
Bigger than America. S. Census Bureau.
In the first quarter of 1999, UPS plans to launch a new Internet service that allows anyone with network access to place orders and send packages anywhere in the world.
But in all the activities of UPS, its global logistics department (WWL)
Annual income is growing at a rate of 42% and people in Atlanta are training their high incometech guns.
UPS is taking on supply chain activities for many companies.
It\'s for software.
Connect data to leading ERP software companies such as SAP, Oracle, and PeopleSoft to create a seamless interface between shipper\'s own systems and UPS networks.
The latest entry for WWL is to develop software for supply chain requirements for specific industries (such as multi-unit hospitals.
WWL has undertaken the company\'s outsourced distribution, including lead-acid battery manufacturer GNB Technologies and AlliedSignal automotive products group that produces Fram Filters, Bendix and self-sealing stone products.
It is estimated that in about $1 trillion in inventory, half of the value can be released through better supply chain management.
Although Kelly said there was no plan to do so, UPS\'s financial subsidiary [
Omitted table data
Loose financing of inventories, credit guarantees and other trade facilitation services shows that Big Brown owns GE Capital Management in its UPS Capital Division.
Difference between UPS and garden variety supply chain suppliers or e-commerce suppliers
There are scale commercial companies.
The end of Big Brownto-
The final delivery volume reached 6% in the United States. S. GDP -
99% of enterprises, 97 houses, 100% of the Fortune 1000.
Swimming on 14 hosts in the data center is an accurate number of the value ordered by zip code and home.
Big Brown believes that by mastering the perfect information about goods and services, it may be the preferred supply chain supplier.
No utility, regional Bell, cable or long distance telephone company is anywhere near the same physical or virtual connection.
Moreover, Big Brown has not faced regulatory, financial or infrastructure barriers that others have to deal.
Still, UPS is muscular and don\'t color emails
Business Brown has just begun.
The company is still licking wounds for the price war in Europe and 1997 team strikes, which makes the relationship between ordinary employees sensitive.
Then there is the challenge from the United States. S. Postal Service.
According to Zona Research December 1998, USPS has a 35% share of the Internet.
Line delivery market compared to UPS\'s 55% share.
The USPS Global package link service covers more than a dozen countries (GPL)targets U. S.
Catalog retailers, offering fast delivery at prices far below the industry average.
For example, the price of GPL is 10-
The London package is $26.
Compared to $41, $63.
On average for business operators, UPS management is angry at the \"sweetheart customs deal\" and the \"capital cost\" advantage, which is unmatched by private sector companies.
\"Big Brown lost $1.
3 billion of international business, mainly in Europe. The once-
Cold postal service in France, Germany, the Netherlands and the United StatesK.
The emergence of privatization and the launch of a single market have freed them.
The revival of Deutsche Post not only slashed the price of shipping and parcels shipped in Germany, but also held a 24% stake in DHL International.
Prior to DP privatization in 2003, CEO Klaus Zumwinkel intended to make its big yellow as ubiquitous as the Big Brown in Europe.
UPS insists its European business is profitable, but admits it is due to its global and pan-
Traffic in Europe.
It gave up its freight business and stopped focusing on domestic parcel services in countries such as Germany.
Across the EU, it lags behind DHL on a global scale, but ahead of the U. S. rival FedEx.
In China, on the contrary, UPS has partnered with SinoTrans, which is now expanding into 21 cities in China.
Like his predecessor, Kelly, 55, had brown blood in his veins.
After doing a short accounting, a native of Jersey City, New Jersey, joined UPS in 1964 as a delivery driver after getting B. A.
From Rutgers University and served in the United States. S. Navy.
A year later, before becoming senior vice president of labor relations in 1988, he was promoted and promoted through various operational positions.
He joined the UPS board in 1991, served as EVP two years later, and served as CEO in January 1997.
Kelly, who is more than 6 feet tall, is naturally United, but is highly focused on \"taking care [\"founder]
Jim Casey\'s company
\"As he said in an interview at UPS Atlanta headquarters,\" The competition is getting blurred.
\"This is also intensifying. J. P.
UPS has been catching up with downcast\'s dream for a while, but now that you \'ve made some progress, what new areas do you have to break through?
What kind of person are you and what do you want to do?
Now, thanks to what we have done in technology and other areas in the last 10 years, we have received additional business returns.
Technology continues to drive us.
The changes are now much faster than they were five years ago and ten years ago.
So how we position ourselves, provide ourselves to our customers, and embed ourselves in their technical solutions will enable us to provide them with more information services.
Supply chain is really three things.
Flow of goods, information and finance.
Our goods are transported very well and do better in the field of information.
In general, the Internet and e-commerce are prompting us to rethink the entire business model, including, of course, the UPS-related supply chain.
As a leader in the field of e-commerce, we have made our own position.
Of course, the same is true of our industry.
We believe that the exchange of documents that we have recently launched will provide an opportunity.
With new sales in the logistics business exceeding $1 billion, what do you think is its growth potential?
We expect our global logistics group to achieve a growth of just over $1 billion over the next few years, with an estimated growth of about 40%.
We are looking for ways to triple or quadruple a portion of our business in three monthsyear period.
Demand is huge and we expect demand to grow tenfold over the next five to six years.
What is the growth rate compared to your core package delivery business?
Our global express delivery products are our fastest growing products.
We continue to have significant growth and increased share in the coming days.
Day business in the United StatesS.
Our ground business grew in a small proportion, but still a very important part of our business, and our residential growth was the most moderate of the four growth.
Do you gradually become a logistics company or a supply chain company?
We are becoming a logistics company because we have many customers who no longer want to do something on their own and they say, \"I want to make a product, after that, I hope you can take good care of it.
\"So there is a big, broad opportunity for a global logistics group.
We heard companies say they want to focus on their core businesses and work with other companies that can deliver quality services in other areas early on.
We already have the infrastructure in the United States. S.
Maybe more responsive than others.
We are now building a global presence.
When you think about logistics, you think about warehouses and shelves, but what our customers ask us to do is --
Everything from repairing computers to site selection
Much deeper in the supply chain.
In some cases they want us to complete their bill and process the inventory cycle time.
You mentioned $1 trillion worth of stock in US warehouses.
Reduce this goal to half a billion.
This number refers to the whole industry, not just UPS.
The customer does not want to bundle the goods.
This is about entering the market as quickly as possible from the end of the product cycle, and sitting in warehouses around the world for as little time as possible.
We can do something for them and eliminate it. between steps.
We have a client who asks us to coordinate when they ship things from three different parts of the world-
Like Malaysia, Toronto, Belgium
In this way, they can all reach the same place at the same time and do not have to stop anywhere between the two.
This shows that you are creating a system that matches your own system.
We want our customers to want where we are.
If the ERP system is their business system, we want to embed it, be able to provide them with information and use it to provide additional value --added services.
Customers decide if mainframe is involved-to-
Embedded in each existing ERP;
Or provide them with software and hardware.
We decided that we would not have proprietary systems that customers would have to use.
We believe this is one of the most important reasons for our success in this field.
Ultimately, will you compete with SAPs and sesofts when designing or helping to design these systems?
The environment in which we are now is changing so fast that competition is becoming more and more blurred.
But I don\'t think we will compete directly with them.
I hope that we will be more involved in providing information solutions to our customers.
We have done something like this in partnership with more than 2,000 different companies.
Our global logistics group has customized the software according to the individual needs of our customers.
This is part of the reason why developing these broad supply chain solutions for customers is not done overnight. It\'s a six-or a nine-month process -
Sometimes a year
Some European countries do not want encrypted data to cross their borders.
Is the encryption technology in UPS\'s document exchange product before it appears? S.
Canada, Japan and Australia without restrictions?
Government regulation is a complex and profound problem.
In the end, it has to allow trade to exist in a free way, and I don\'t believe that some parts of the world will prevent people from trading electronically, so, encryption and security issues will be dealt with at some point in time and become more reasonable.
What are the challenges of document exchange?
Historically, we usually put products, such
In the long run, Day air or global express delivery.
With technical products, you must be ready to change them quickly, adapt, adjust, understand customer needs, and look for the next way to meet customer needs, get documents from point A to Point B
Over the past five or six years, you have invested a lot in developing your international business.
In retrospect, what lessons have you learned and what different things will you do?
Looking back, we should know that in addition to our domestic operations and those in Canada and Germany, we also serve 200 countries, and it takes time to integrate systems and different products, and hone these things to get the efficiency and service reliability we offer in the USS. [
Omitted table data
Putting these things together takes more time than we expected.
The main challenge now in Europe is Postal Service.
This is similar to the challenges we face in the United States. S.
Postal services have driven a lot of consolidation, some of which will be privatized in the coming years.
Few of us understand what privatization means and how subsidies will exist from the start --
Class mail for parcel delivery.
As long as the competitive environment is fair, we are not against competition.
In the past four months, Deutsche Post has made seven or eight acquisitions in different EU countries, including the United States, including DHL. K. and France.
So they are growing up actively.
We are now making some complaints to the EU on this issue.
If they were privatized, no cross was received
Subsidies from first
It can solve the problems we care about.
Unfortunately, the time frame for solving some of these problems is beyond a reasonable range.
Like America. S. Postal Service;
You can\'t do both.
You can\'t monopolize and then compete with the room with the power of monopolyand-
Pop-up shop, UPS or FedEx.
It must be one or the other.
If some EU countries do not wish to do so, then they must be banned from doing so through the monopoly class.
Of course it\'s long.
Long-term solutions in the United StatesS.
The postal interest rate committee is more supervised.
We support universal delivery of the first productclass mail.
We don\'t support the Walt Disney T-
Shirts, or how do they compete with private mail fraud?
How do you look at USPS\'s priority mail ads, compare their prices to those of you and FedEx, and mention that UPS does not ship on Saturday?
We have responded to the post and Congress.
The ads compare apples with oranges.
They have two. to four-
Day product with no guarantee and tracking capability.
How is UPS operating in China and Asia?
We work with our partners in ChinaSinoTrans -
In China, our competitors have express delivery services in more cities.
So we are satisfied with our growth there.
In Asia, we have 10-
The past year has grown by 12%.
Our main concern isand-
Asia from North America, Europe and Latin America.
We have fewer interiors.
Asian infrastructure is better than some of our competitors, so we are not hurt in Asia like other companies.
What is your strongest growth area?
We expect that our express delivery business will grow well in 200 countries and logistics groups around the world. E-
Business will provide us with the opportunity to go beyond the current benefits of our embedded customer system.
We have double.
Total air volume and future digital growth
Air Products. Business-to-
Business is very important to us, we are developing better models to reach residential customers, residential customers have the potential to grow due to e-commercecommerce.
This Christmas, I bought about $50 million online.
If this will grow five times over the next two years and ten times over the next four years, will it become important when it is 2 or 3%?
There are some questions about how fast this happens and how it will happen.
But it will happen.
Therefore, we must find a better way to ship the goods to the residential customers.