Out of the Nest

UPS forms new organization solely for supply chain solutions

ATLANTA  February 20, 2002  UPS's recently developed logistics and services offerings apparently have been getting pretty popular. So popular, in fact, that UPS has decided to create a new organization just around its supply chain services. The new company, UPS Supply Chain Solutions will combine the sales, marketing, finance and technology resources for its supply chain subsidiaries.

But the signs of UPS's popularity don't end there. According to a recent Fortune magazine survey, UPS has been rated America's Most Admired company in its industry for the 19th consecutive year.

This pr boost will not doubt help out the new organization, which is designed to make it easier for customers to access UPS's expanding range of logistics, freight, financial and consulting services in order to improve the performance of their global supply chains.

UPS Supply Chain Solutions offers customers the combined services of UPS Logistics Group, UPS Freight Services (including Fritz), UPS Capital, UPS Consulting and UPS Mail Innovations.  Together, these companies provide supply chain design and management, freight forwarding, customs brokerage, mail services, multi-modal transportation, consulting and financial services.

"These combined resources will allow customers to tap our global physical and technology infrastructure for broader, deeper solutions across the supply chain," said Joe Pyne, UPS senior vice president and head of Supply Chain Solutions.

The creation of UPS Supply Chain Solutions follows several years of strategic acquisitions and geographic expansion to aggressively enter the supply chain management marketplace.  Combined, UPS's supply chain subsidiaries provide more than $2 billion in annual revenue and operate in more than 120 countries.

These supply chain companies already have extended UPS far beyond its traditional package delivery base, providing new services and stronger ties with our customers and new revenue streams for the benefit of our shareholders, said Pyne.

UPS entered the logistics arena in the mid-1990's, both to satisfy customer requests and to fulfill a strategic vision of operating across the entire stream of commerce, from goods to information to funds.  The company's supply chain services also leverage UPS's expertise in building and operating global IT and physical infrastructures and managing complex networks.

While the number of third-party logistics providers continues to increase, only a handful can provide a global IT and physical infrastructure, observed Pyne.  And even fewer can offer supply chain financing services, which is the specialty of UPS Capital.

In announcing the new organization, the company also reported a key appointment.  Dan DiMaggio, formerly CEO, UPS Logistics Group, will direct UPS Supply Chain Solutions' global sales, marketing and solutions teams.