Fundamental Nature of Global Commerce Changing

Transcription

1 Building New Business Strategies with Communication and Energy Technologies Fundamental Nature of Global Commerce Changing 1

2 Two Strong Forces Creating Revolution in Commerce Globalization Consumer Pull Two Strong Forces Creating Revolution in Commerce Globalization Consumer Pull 2

3 LauderdaleLilies.com is Virtual Owns no nurseries, warehouses, or storefronts Partnerships: Nurseries in Colombia and Costa Rica Streamlined supply chain has reduced costs and environmental impacts 3

4 UPS Driver Captures Digital Signature 4

5 DIAD Environmental Impact Savings per year: 59,425,060 sheets of paper Savings per year: 5,167 trees The Dematerialization Continuum UPS OnLine Courier UPS Mail

6 UPS OnLine Courier Faxing Over-nighting Speed Security Environmental Capacity Control Cost UPS OnLine Courier 1 Document Overnight Letter OnLine Courier Hours to Process Cost to Process $4.44 $3.17 Cost to Send $11.00 $2.50 Total Cost $15.44 $ Documents Overnight Letter OnLine Courier Hours to Process Cost to Process $9.62 $3.17 Cost to Send $ $25.00 Total Cost $ $28.17 Sources: UPS Industrial Engineering & FedEx 9/99 Service Guide - 8 oz. Letter Region 2 Priority Overnight 6

7 UPS Mail 2000 United States Postal Service Local to Regional sorting facilities Regional to Local sorting facilities Local mail carrier sort Mail

8 APPENDIX INFORMATION Alternative Fuel Vehicles The Decarbonization Continuum Alternative Fuel Vehicles CNG Electric 8

9 The UPS Fleet 622 aircraft 10 LNG 70,740 package delivery vehicles 11,300 tractors & 59,500 trailers 967 CNG 832 propane 13 electric vans 1,390 other LEV Alternative Fuel Fleet 750 Propane CNG Vehicles Propane 9

10 Air Emissions UPS / Battelle Study Fuel Station 1995 / CNG Vehicles PM CO NOx CO 2 nmhc 4 95% 75% 49% 7% 4% 2 0 PM CO NOx CO2/100 HC/nmHC MPEG Diesel CNG CNG Fuel Consideration Safety of using CNG Environmental Quality $7.00 $6.00 $5.00 $4.00 $3.00 Nat. Gas V Diesel 1990 to 2001 $1.20 $1.00 $0.80 $0.60 Cost comparison $2.00 $1.00 Avg QTR Nat Gas Avg QTR Diesel $0.40 $0.20 $- 2Q-90 1Q-91 4Q-91 3Q-92 2Q-93 1Q-94 4Q-94 3Q-95 2Q-96 1Q-97 4Q-97 3Q-98 2Q-99 1Q-00 4Q-00 3Q-01 $- 10

11 CNG Fuel Experience Vehicle performance and fuel station design Proven safety record / CNG dissipates in atmosphere Narrow range of flammability / High ignition temperature Reduced emissions / eliminate contamination 1.35 CNG GGE = 1 gal of diesel CNG Vehicles Consideration Acquisition vs conversion Power and performance Range requirements Maintenance cost Experience Early entry / 2 x cost CNG under powers / performs - upgrade 200 miles vs 350 miles Maintenance cost per mile 29% higher than diesel 11

12 CNG $ Analysis Consideration Tax incentives Fuel cost Fuel consumption in miles / car day Rebates Fill time Capital costs Own / lease or fuel contracts Experience Fuel cost fluctuation Fleet conversion cost Background 12

13 UPS Overview 344,000 employees $29.8 billion revenue Covers 4 billion of World s population 11th largest airline 13.2 million packages per day, 3 billion/year Annual IT investment of over $1 billion Largest cellular user in the world 2 Million tracking requests per day over the web Connect 1.7 million sellers with 7 million buyers every day UPS OnLine Courier UPS ONLINE COURIER GLOBAL PRICING Monthly Track/Encoded Track Only 1-99 $2.50 $ $2.25 $ $2.00 $ $1.75 $.60 13

14 Total Peak Day Customer Inquiries Thousands of Inquiries 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 17% Electronically Connected 90% Phone Calls Automated Phone Calls OnLine Internet Source: UPS CSC Analysis 51% 77% 14