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Let's Talk Freight

Maryann Cassidy Kearns
e-Commerce Sales
United Parcel Service

 January 24, 2001


Facing a virtual reality?


Importance of Fulfillment

Christmas 1999 "items arrived later than promised-and some didn''t arrive at all. It became apparent that E-business success depends more on capable back-end fulfillment systems than on flashy Web sites".

--Information Week, September 2000


A Tradition of Watching Our Customers' Back-Ends


The UPS Perspective


Supply chains are being transformed...

graphical diagram showing the shift from supply chains to pull value chains

...into pull value chains


Combining Three Flows.of Commerce


Characteristics of the new electronic supply chain


Integration Throughout the Customer's Business Process

Flowchart of the customer's business process

Order Entry

Account Process

Customer Service

Inventory

Pick, Pack, & Ship

Returns


Integration = Process Improvement

Tracking
Direct Integration
Inbound and Outbound
Real Time Visibility
Improve
Customer
Service
POD
Days Sales Outstanding
Cash Flow
Enhance
Corporate
Financials
TNT
Planning and Forecasting
accuracy
Improve
Inventory Turns
Electronic
Billing
Integrate transportation into
enterprise finance system
Eliminate
Freight Bill
Audit

Two Strong Forces Creating Revolution in Commerce


The UPS View: Drop the "E" in E- Commerce


Applying Technologies For Customer Value

screen shot of UPS e-commerce web site

bar chart showing increase in customer inquires 1996-1999

screen shot of a customer tracking software program

Our Customers' Cost of Tracking a Package:


In Summary...


Process Improvement is the Key to Value Creation

photo of a dog with a rocket strapped to its back

Strapping New Technology to Old Business Processes Will Negatively Impact Value.

Updated: 03/31/2011
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