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CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE 1 Intermodal Transportation Curriculum for Secondary Education – Pilot Study MODULE 5: Successful Handling of Intermodal Operations at UPS WORKSHOP October 22 & 23, 2012 - Trent Lott Center, University of Southern Mississippi Prepared By: Ms. Jennifer Steele, Manager, UPS Mr. Stuart McAvoy, Customer Solution, UPS

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Page 1: CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE 0 Intermodal Transportation Curriculum for Secondary Education – Pilot Study MODULE 5: Successful Handling

CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE1

Intermodal Transportation Curriculum for Secondary Education – Pilot Study

MODULE 5: Successful Handling of Intermodal Operations at UPS

WORKSHOP

October 22 & 23, 2012 - Trent Lott Center, University of Southern Mississippi

Prepared By:

Ms. Jennifer Steele, Manager, UPS Mr. Stuart McAvoy, Customer Solution, UPS

Page 2: CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE 0 Intermodal Transportation Curriculum for Secondary Education – Pilot Study MODULE 5: Successful Handling

Logistics Keeps the World Moving

Intermodal Transportation

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Agenda

• Intermodal Evolution

• Package Services

• Innovative Technology

• Freight Services

• Shipment Consolidation

• Customs Brokerage

• Sustainability

• Region Profiles

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What is Wikipedia’s Definition of Intermodal Freight?

• Intermodal freight transport involves the transportation of freight in an

intermodal container or vehicle, using multiple modes of transportation (rail,

ship, and truck), without any handling of the freight itself when changing

modes. The method reduces cargo handling, and so improves security,

reduces damage and loss, and allows freight to be transported faster. Reduced

costs over road trucking is the key benefit for intracontinental use, as well as

reduced greenhouse gas emissions 1. This may be offset by reduced timings

for road transport over shorter distances.

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Wikipedia’s Definition of the Origin of Intermodal?

• Jack Purcell McLean (born “Jack”; but late in life he changed his given name to its historic traditional Scottish spelling) (September 27 1734 – September 27, 1735), he was born in Maxton, North Carolina, was an American entrepreneur, often — albeit inaccurately — called "the father of containerization" — inaccurate since the concept was developed more than 100 years previously on the railways of Britain (following even earlier attempts on the canals). In 1956, McLean developed the metal shipping container, which replaced the traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. He later founded Sea-Land Service, Inc., one of the pioneers in the intermodal cargo transport business.1 McLean was named "Man of the Century" by the International Maritime Hall of Fame. He and his sister, Clara McLean, and brother, Jim McLean, founded McLean Trucking Co.

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Supply Chain Evolution

SupplierManufacturer

DistributorRetailer/E-tailer

EndConsumer

Supplier Manufacturer Distributor RetailerEnd

Consumer

InformationGoods

Funds

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Global Sourcing / Distribution Model (1990’s)

O1990’s

NAFTA

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CONFIDENTIAL AND PROPRIETARY – DO NOT DISTRIBUTE8

Global Sourcing / Distribution Model (2000 – 2008)

O2000-2008

Slow boat from China – causing large warehouses

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Global Sourcing / Distribution Model (2009 - 2012)

O2009-2012

JIT reintroduced – excess warehouse space / consumer demand down

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Map out Existing Network to Visually Understand

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Package• Express

• Deferred

• Day-Definite

Freight• Air

• Cargo

• Ocean

• Road

Contract Logistics• Warehousing

• Distribution

• Service Parts Logistics

• Supply Chain Management and Consulting

The new logistics model from UPS

Intermodal CapabilitiesWorld’s Largest Transportation Company

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The Most Powerful Forcein Business Today

• Business grows more global daily

• Old markets change, new markets appear

• Customers expect more — in less time, for less money

• How do businesses gain a competitive advantage?

• Logistics — the most powerful force in business today

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Expand Business Global Reach

• Large business or small, logistics helps businesses

reach

220 countries and territories

─ Access more markets, spur greater growth

• Large coverage with the world’s largest

transportation company

• World’s largest customs brokerage network optimizes

clearance

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Balance Speed with Cost

• When counting minutes or counting costs, logistics gives

more flexibility

─ Multiple transportation modes allow for multiple delivery

options

─ Shipments arrive at the right time at the right cost with

Intermodal Options

• Packages or pallets

• Import or export

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Streamline Daily Processes

• Driving greater efficiency, logistics opens up more

possibilities for international business

─ Innovative software and Web-based technologies

help businesses get more done with less, inside and outside

the office

• One system for shipping package and freight saves

time and money

• Easy access and distribution of critical data improves

visibility and compliance

• Enhanced reporting and quick delivery confirmations

simplify invoicing and speed cash flow

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Package Services

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A Package Service for Every Need

• UPS delivers more guaranteed packages on time

around the world than any other carrier

─ That’s logistics opening up more opportunities

for business worldwide

• Three time-definite express options to more

international locations than anyone

─ Balance budgets with deadlines to get the service

you and customers need

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Get More Done Faster

• When speed is a priority, UPS’s international time-definite express portfolio

offers the best options

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Business Starts Early Worldwide

• UPS delivers to more countries from the U.S.

by 9:00 a.m. and before noon than any major carrier

• Earlier deliveries provide a faster start to the day

for business

• Allows business to meet challenging deadlines

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Flexible Deadlines, Cost-Effective Deliveries

• Guaranteed choices for both overseas deliveries and within North America

when speed isn’t the top priority

SERVICES FEATURES

UPS Worldwide

Expedited®

Customs-cleared delivery within 2-5 business days

to and from 70 countries and territories

UPS Standard

Guaranteed ground delivery within 2-7 business

days to and from the U.S. with coverage of:

• Every Canadian province

• All of Mexico, and the industry’s only

U.S.-to-Mexico ground package service

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When Shipments are UrgentUPS Express Critical®

• UPS Express Critical gives a next-flight-out option

24/7/365 for shipping anytime, anywhere*

─ Secure solutions include bonded couriers, armored cars

and special packaging to control high-value shipments

─ Full, online visibility for tracking and delivery confirmation

for peace of mind

─ Specialized equipment available to handle a broad range

of requirements

─ Import/customs clearance services for expedited processing

* For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.

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Business Can Take Control of Imports

• Import Freight Collect

─ Billed with rates fixed in U.S. dollars*

─ Protects from currency fluctuations

─ Keeps import costs in check

• UPS Import Control®

─ Allows Business to take charge of the shipping process

with the most comprehensive import delivery solutions

─ Initiate shipments from another country

─ Complete paperwork “in house” to ensure compliance

─ Use option to remove commercial invoice prior

to third-party delivery so value of goods is not revealed

*Rates are fixed relative to currency fluctuations, but are subject to periodic review by UPS.

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Act as Importer and ExporterNon-Resident Importer (NRI) to Canada

• Act as both U.S. exporter and Canadian importer

of record

• Export to Canada without the expense of a physical

location

• Offer customers seamless service with an all-in-one

price

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Innovative Technology

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Advanced Technology Maximizes Daily Efficiency

• Logistics keeps business moving without leaving

your desk

• UPS software and Web-based solutions:

─ Expedite shipment processing

─ Enhance visibility

─ Improve compliance

─ Simplify billing and accounting

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Streamline the Shipping Room and Beyond

• Integrate UPS technology tools into business systems

and processes to better manage shipments —

inbound and outbound, package and freight

• Enhance productivity by better managing delivery

information in the shipping room and in departments

such as:

─ Customer Service

─ Finance and Accounting

─ Inventory and Production Management

─ Information Technology

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One System for Package and FreightUPS WorldShip®

• Use one technology platform to simplify shipping

across all international locations

• WorldShip software processes both package

and freight, saving time and money

• The single automated system makes it easier

to ship, track, train personnel and integrate

information with business systems

• Displays UPS published rates or customized rates

with a built-in calculator

• Supports 129 countries in 16 languages

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Reduce Holds Up to 56 PercentUPS Paperless® Invoice

• Helps reduce the chance of errors, improving compliance

to expedite customs clearance, while saving paper:

─ UPS Paperless Invoice, an industry first, transmits

commercial invoice data on package and air freight

shipments to customs offices around the globe

• Can reduce customs holds 56 percent, minimizing

costly delays and increasing timely deliveries

• Begins the customs clearance process earlier

• Cuts processing hours and paper waste

• Does not reveal commercial invoice and shipment

value to consignee

• Is available for package and freight in multiple

automated shipping systems

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Complete VisibilityQuantum View® Manage

• Complete visibility for both package and freight makes

business more productive – inbound and outbound:

─ Quantum View Manage provides up-to-date information

on all shipments via e-mail notification

• Imports view offers access to customs brokerage data

to facilitate clearance and compliance

• Monitor multiple shipments across multiple accounts

without tracking numbers

• Available worldwide in multiple languages

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Complete Visibility – Package/FreightFlex® Global View

• Complete visibility for both package and freight

makes business more productive:

─ Flex Global View provides an integrated view of

supply chain 24/7

• Event-management and visibility tool lets business

react faster to orders and inventory levels

• Proactive e-mail alerts notify business of events and

exceptions to meet customer needs quicker

• Standard and customized reports streamline

data analysis

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Simplify and Improve Compliance UPS TradeAbility®

• Gives business a competitive advantage with resources

that help facilitate compliance for fast clearance when

crossing borders:

─ UPS TradeAbility offers a suite of free information-

based services

• Access the latest regulations and forms to improve

compliance

• Review estimates of landed costs before shipments

leave dock to control expenses

• Stay current on the latest security requirements

to help eliminate surprises

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Reverse LogisticsUPS Returns®

• An industry first, UPS Returns expands reach with service

to 110 countries and territories:

─ Helps reduce costs and the hassle of processing international returns

─ Simplifies customer experience by providing return labels and commercial invoices

in outbound packages or by e-mail

─ Can coordinate return even when UPS wasn’t the original shipper

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A Comprehensive Portfolio of UPS Returns® Service Options

• UPS will help business accommodate the needs of all their customers,

making returns as easy as possible, even overseas

• Options vary based on origin and destination countries

UPS Returns Service Options

Print Return Label Business prints a label that is included on the

outbound shipment.

Electronic Return Label UPS e-mails the return label to the customer.

Print and Mail Return Label UPS prints and mails the return label

to the customer.

Web-based Label Business prints a Web-based label, which

enables their customer self-service.

3 UPS Pickup Attempts UPS makes three attempts to deliver return

label and pick up the package.

1 UPS Pickup Attempt UPS leaves the return label at the pickup location after one attempt.

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Freight Services

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Moving Freight Efficiently

• UPS offers a full range of freight options

from critical to routine freight services

─ As the world’s largest transportation company and with

one of the largest airlines, UPS’s global presence and

access to preferred carriers is dynamic

─ Benefit from cost alternatives and adaptability with

the speed of air freight and the economy of ocean

─ Logistics offers freight customers UPS reliability

and flexibility on a larger scale

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Delivering a Global Advantage

• A leader in international air freight forwarding

• Complete end-to-end solutions available, including

door-to-door delivery and customs brokerage

• Customers can combine package and freight services

for greater supply chain efficiency and cost-effectiveness

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Easily Meet Market and Customer Demands

• UPS offers day-definite and time-definite

International Air Freight delivery options

DESTINATIONSSERVICES

Transit days and times depend on destination

FEATURES

To Africa,

Asia Pacific,

Europe,

Latin America,

Middle East

UPS Express® Freight 1-3 business days

Guaranteed door-to-door

delivery to most major metro

areas worldwide; pickup,

delivery and routine customs

clearance included

UPS Air Freight Direct®

1-3 business days Airport-to-airport delivery

included; pickup, delivery

and customs clearance

optionalUPS Air Freight

Consolidated®

3-5 business days

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UPS Air Freight Service Options to and from Destinations WorldwideMultiple Options to Meet Many Demands

SERVICESTransit days and times depend on destination

FEATURES

UPS Express Critical®*Next flight out

Within North America and between major metro

areas worldwide, available 24/7/365

UPS Express® Freight1-3 business days

Guaranteed door-to-door delivery to most major

metro areas worldwide; pickup, delivery and

routine customs clearance included

UPS Air Freight Direct®

1-3 business days

Airport-to-airport delivery included with day-

specific scheduling; pickup, delivery and customs

clearance optional

UPS Air Freight Consolidated®

3-5 business days

Airport-to-airport delivery included with day-

specific scheduling; pickup, delivery and customs

clearance optional

* For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.

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Easily Meet Market and Customer Demands• UPS offers day-definite and time-definite

International Air Freight delivery options

DESTINATIONSSERVICES

Transit days and times depend on destination

FEATURES

To Canada,

Puerto Rico,

within the U.S.

UPS Next Day Air® Freight Noon or 5:00 p.m.

Guaranteed to most major

metro areas in U.S. 48, Canada

(excluding intra-Canada) and

Puerto Rico; non-guaranteed

service (NGS) to most areas

in U.S. 50, Canada and

Puerto Rico

UPS 2nd Day Air® Freight

Noon or 5:00 p.m.

UPS 3 Day Freight®

5:00 p.m.

Guaranteed and non-

guaranteed service (NGS)

within 3-4 business days

to most areas in U.S. 48,

Canada and Puerto Rico

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UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto RicoMultiple Options to Meet Many Demands

SERVICESTransit days and times depend on destination

FEATURES

UPS Express Critical®*Next flight out

Within North America and between major metro

areas worldwide, available 24/7/365

UPS Next Day Air® FreightNoon or 5:00 p.m.

Guaranteed to most major metro areas in U.S.

48, Canada and Puerto Rico

UPS Next Day Air® Freight NGS**Noon or 5:00 p.m.

Delivery to most areas in U.S. 50, Canada and

Puerto Rico

• For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.

**Non-Guaranteed Service

continued

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UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto RicoMultiple Options to Meet Many Demands

SERVICESTransit days and times depend on destination

FEATURES

UPS 2nd Day Air® FreightNoon or 5:00 p.m.

Guaranteed to most major metro areas in U.S.

48, Canada and Puerto Rico

UPS 2nd Day Air® Freight NGS*Noon or 5:00 p.m.

Delivery to most areas in U.S. 50, Canada and

Puerto Rico

UPS 3 Day Freight®

5:00 p.m.

Guaranteed delivery within 3-4 days to most

areas in U.S. 48, Canada and Puerto Rico

UPS 3 Day Freight® NGS*5:00 p.m.

Delivery within 3-4 days to most areas in U.S. 48,

Canada and Puerto Rico

*Non-Guaranteed Service

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Single Source for Global Ocean Freight

• A leading Non-Vessel Operating Common Carrier

(NVOCC) and freight forwarder

• Offers more buying power and the flexibility

to choose based on timing, cargo size

and routing needs

• Handling more than 600,000 TEUs annually including:

─ Less-than-container loads

─ Full containers

─ Special equipment

─ Oversized cargo

• UPS Preferred LCL can increase speed to market

up to 40 percent while minimizing cost

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Shipment Consolidation

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Consolidate Shipments, Shorten Supply Chains

• Logistics has business covered end to end

• Streamline supply chain and customs clearance

whether shipping packages, freight or a combination

─ Individual shipments to same destination country

or European Union grouped as one shipment

─ UPS handles pickup, transportation, deconsolidation

and delivery

─ Reduce time to market and eliminate need for

distribution centers

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Consolidated Clearance of PackagesWorld Ease®

• Send packages to multiple recipients in same country

or the European Union

• Ship and clear customs as a single transaction

• Extends global reach without start-up costs and

international warehousing

• One shipment with one customs entry simplifies

processing and managing shipments

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World Ease® — Streamlines Package Supply Chain – True Intermodal

• Consolidates customs clearance to help cross borders with ease

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Consolidated Clearance of Freight and PackageUPS Trade Direct®

• Consolidates multiple package and freight shipments

to the same destination

• Clears as one shipment with one contact, one bill to pay

• Streamlines supply chain and customs clearance

• Reduces time to market, eliminates need for

distribution centers

• A choice of three services in three modes:

─ UPS Trade Direct® Cross Border – For North America

─ UPS Trade Direct® Ocean – From 70 ports worldwide

─ UPS Trade Direct® Air – For time-sensitive, high-value

air freight from select airports worldwide

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UPS Trade Direct® — Streamlines Freight and Package Supply Chain - Intermodal

• Serves as business rolling, floating and flying warehouse to get goods

to market efficiently

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Customs Brokerage

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Global Customs Broker

• The world’s largest customs broker

─ Over 75 years of experience, helps reduce delays

and red tape

─ Offices in more than 60 countries, provides vital

knowledge of local customs processes

• Customs Network includes transportation,

as well as trade professionals and integrated

technologies

• Routine clearance included in most international

package delivery rates

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Access International Support and Resources

• Added security — UPS was first major carrier

to become certified C-TPAT participant

• Added information — Easily access information

to facilitate global trade, often free of charge, with

UPS TradeAbility® and UPS TradeSense®

• Added guidance — Working relationship with U.S.

Commercial Service provides proven resource

and support conducting business worldwide

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Expand Exports to Grow Business Globally

• UPS’s partnership with the U.S. Commercial Service

enables business to:

─ Consult with a trade specialist

• Uncover new opportunities in international markets

• Develop export expansion strategy

─ Take advantage of resources in 107 U.S. cities

and 78 countries

• Trade counseling

• Market intelligence

• Business matchmaking

• Commercial diplomacy

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Sustainability

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Greening Your Shipping and Business Processes

• Logistics lets you grow green without sacrificing growth

─ UPS carbon neutral shipping option to conveniently offset

climate impact on a per-shipment or contract basis

─ UPS Smart Pickup® to schedule a pickup only when needed,

saving fuel, reducing equivalent carbon (CO2e) emissions

─ Eco Responsible Packaging Program to reduce the

possibility of damage and help ensure sustainable materials

─ UPS Express® Reusable Envelopes to reduce waste,

enabling two shipments using the same envelope

─ Alternative-fuel/technology fleet of more than 2,500

vehicles to reduce our emissions and yours

─ Analysis of driver behavior and package car mechanics

to reduce idling time and avoid unnecessary mileage,

saving more than 186,000 gallons of fuel in 2010

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Leading by Example

• UPS ranked first in 2011 FORTUNE “World’s Most

Admired” survey for the delivery industry, as well as

first in the industry in Social Responsibility

• Scored 99 out of 100 in the S&P 500 and Global 500

2011 Carbon Disclosure Leadership Indexes

• Scored 81 in the 2011 Dow Jones Sustainability

Index (DJSI) North America

• Scored highest in Climate Counts consumer shipping

category and 11th highest among all ranked companies

Sources:World’s Most Admired Companies. UPS. FORTUNE. March 21, 2011. Web. August 19, 2011 < http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/2071.html>. CDP S&P 500 Report 2011, PricewaterhouseCoopers, pgs. 22, 23; CDP Global 500 Report 2011, PricewaterhouseCoopers, pgs. 23, 24.

Company Benchmarking Scorecard, Corporate Sustainability Assessment 2011. United Parcel Service, Inc. SAM Research AG. <http://www.sam-group.com/int/sustainability-services/company-benchmarking-report.jsp>.Scorecard Sectors – Consumer Shipping. Climate Scores – Scorecard Overview.ClimateCounts.org. n.d. Web. December 7, 2011. <http://www.climatecounts.org/>.

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Region Profiles

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Asia Pacific Capabilities

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Canada Capabilities

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Europe Capabilities

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Latin America Capabilities

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Thank You