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2014/SOM2/CTI/DIA3/011

Adopting Effective and Innovative Trade Measures

Submitted by: UPS

Public-Private Dialogue on Building Asia Pacific Partnership Through Global

Value Chains Collaboration Qingdao, China

12 May 2014

 

5/13/2014

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Adopting Effective and Innovative Trade Measures

May 12, 2014

APEC Public-Private Dialogue on Building Asia Pacific

Partnership Through Global Value Chains Collaboration

James XiongVice President, Public

Affairs

UPS China

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS. © 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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An Enabler of Global Value Chains

• Global leader in package

delivery and supply chain

solutions

• Custodian of 2% of global GDP

• Serves more than 220

economies

• World’s 9th largest airline

• Supports global value chains in

technology, healthcare,

industrial, and retail verticals

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Contextualizing Value Chains

Real examples to drive meaningful policy recommendations

Footwear Global Value Chain

Healthcare Global Value Chain

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Healthcare Global Value ChainFrom R&D to Retail

1

4

1. Research and Development2. Clinical Trials3. Regulatory Approvals

4. Manufacturing5. Logistics / Distribution6. Sales and Marketing

25

4

63

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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PP360 in the Healthcare Global Value Chain

Origin Airport Destination

Securing Time-Sensitive, High-Value Pharmaceuticals

1. Receive order 2. Transfer stock to

PP3603. Move PP360 to

airport

Full Custodial Control by UPS

4. Facilitate export documentation and customs clearance

5. Confirm delivery details

6. Load PP360 onto aircraft

7. Facilitate customs clearance/import documentation

8. Upload PP360 from aircraft

9. Move PP360 to healthcare facility

10.Unload stock

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Footwear Global Value ChainFrom Design to Demand

3

1. Design2. Materials Procurement3. Manufacturing

4. Logistics5. Distribution and Fulfillment6. Sales and Marketing

12

45 6

2

2

3

2

44

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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E-Commerce in the Footwear Global Value Chain

Fulfillment Transit Delivery

Delighting Global Customers

1. Online order 2. Fulfill from US

warehouse3. Transport to

airport

Full Custodial Control by UPS

4. Facilitate export documentation and customs clearance

5. Confirm delivery details

6. Load aircraft

7. Facilitate customs clearance/import documentation

8. Unload aircraft and transfer to UPS hub

9. Sort at UPS hub 10.Last mile delivery

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Towards Impactful Trade Measures APEC has already made great strides

Trade Measures

for Global Value

Chains

Supply Chain Connectivity

Local Content Requirements

Regional Economic

Integration

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

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Towards Impactful Trade Measures What else can be done?

• Recommendation 1

– Make APEC’s existing global value chains more efficient and

competitive by focusing on component parts to identify bottlenecks

and create growth-enabling trade measures

• Example: Intellectual property rights spur high-value R&D

• Recommendation 2

– Understand an APEC global value chain’s ecosystem in a particular

economy and create policies to support its components

• Example: Singapore healthcare supported by robust ecosystem

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.© 2013 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Thank You