ENG/GEN

Inside StoryProhibited Articles A contractual option just introduced. See page 2.

New AirbusUPS extends its fleet. See page 3.

Customer case studySee how customers are taking advantage ofthe UPS Return Services on page 3.

What’s in a colour?Read these interesting UPS facts on page 4.

UPS rates (and most in our industry)

are based on the greater sum of

either:

1) the total actual weight of the

shipment or

2) the total dimensional weight of

all packages in a shipment

Continued on back page

Q. When does a tonne of featherscost more than a tonne of gold?

A. When it’s in a big boxWhen it comes to shipping goods, weight and measurements are frequently

more important factors in determining the cost of sending the shipment,

than its actual value.

US economic revival under way“It’s recovery, but not as we know it,” is the phrase that Alan Greenspan, Chairman of the US Federal Reserve, would probably have used when describing the economic revival, now well under

way in the US. But the recovery is unlikely to follow a familiar pattern. A gentler and less firmly established return to growth should be expected this time around.

The economic improvements indicate

that the US recession, which officially

began more than 12 months ago, might

well be over.

If Greenspan is right, it will be the

shortest recession in the US for 30 years.

With an end in sight, the speed at which

the economy has improved is an aston-

ishing testimony to the resilience of the

American economy and to the resolve of

the American consumers to spend their

way through the downturn.

There are lots of encouraging signs. A

report from the ‘US Labor Department’

showed rapid growth in US productivity at

the end of 2001. In February 2002, the US

enjoyed rising employment for the first time

since July and the unemployment rate fell

to 5.5 per cent. This was the end of seven

consecutive months of rising unemployment.

A much-needed boost for Europe’seconomiesThe economic upturn is not only good news

for the US, but is also a much-needed

boost for Europe’s economies. It signifies

an opportunity for businesses to re-estab-

lish pre-recession trading volumes.

And UPS is ready to handle the growth,

looking forward to enabling commerce to

flow even faster. North America is where

our roots are. Our brown package cars are

a familiar sight on streets, highways and

boardwalks across the continent. By taking

advantage of our massive infrastructure

and network in the US, our unrivalled port-

folio of services can help you balance

speed with economy, depending on your

shipping need.

UPS Express offers a next day service

to New York and the surrounding area

before 10.30am.*

This same service also covers other

North American destinations within two

days, 78% of US businesses covered with

a 10.30 a.m. delivery.*

And when your shipments are

important but not urgent then our UPS

Expedited service combines economy with

reliability. Customers can have shipments

delivered with a 3-6 day transit time to

major cities across the US – from New York

to Los Angeles, depending on origin.*

With all of our shipping services, you

can provide additional customer service to

your own customers, when you use our

technology solutions to create your

shipping documentation. Here UPS Internet

Shipping or UPS OnLine™ WorldShip™

can trigger an automatic email to let your

customers know that their shipments

are processed and provides them with a

unique tracking number. This is especially

reassuring for customers in different time

zones. They can immediately relax as

they start their day, knowing that their

order is in hand, with all the information

they need to track the shipment – without

having to call you.

Greenspan’s predictions suggest that

good customer service will be key to

a sustained recovery and an essential

element in future growth. He has warned

that the apparent revival will be ‘short-

lived’ without persistent growth in spending

on goods and services and that a long-

term risk facing the US has emerged from

its change from a ‘goods-based’ economy

to a ‘concept-based’ one. The growing

importance to the economy of intangibles

such as human capital and reputation –

as opposed to physical assets such as

factories and trucks – has made businesses

more susceptible to loss of investor

confidence.

With the growing importance of rep-

utation – on-time, reliable delivery could

be critical, not just to your business, but a

key contributor to the economic revival

in general.

*To confirm precise transit times from your postcode,access the Time in Transit function or Service Guidesection on www.ups.com

“Good customer service will be key to a sustained recovery”

T h e l a t e s t n e w s a n d v i e w s f r o m U P S – S u m m e r 2 0 0 2w w w . u p s . c o m

UPS on the Net

UPS OnLine™WorldShip™Shipping TipAre you getting the most out of UPS OnLine WorldShip?

Did you know that you can import

data from your existing systems

into your UPS OnLine WorldShip?

If you are already using UPS

OnLine WorldShip, you should be

experiencing the benefit of the key

activities you can do, such as pro-

ducing your shipping documentation

electronically, using the

shipment notification

function to email your

customers in advance of

their shipment arriving,

creating useful shipping

reports, etc. …But you

might not be aware of

some of the other jobs it

can do to make your life easier.

Data Import Feature This function is very useful for a number

of reasons:

■ You can save time because you can

import data from your existing com-

pany databases into UPS WorldShip

so no need to double enter customer

information, order or invoice details, etc.

■ You can heighten accuracy by avoiding

the need to re-key existing customer

information and still access the latest

information on your systems

■ You can continue to work with your

company’s business processes and

systems without having to re-create or

maintain separate databases.

The data import feature allows you

to copy database information from your

company’s databases to the appropriate

UPS WorldShip table. For example, if your

www.ups.com

“Consider it solved, Watson”Sherlock Holmes might have been an even more successful detective had his magnifying glass had the same tracking power that you have at your fingertips today.

InBriefStill the World’s MostAdmiredWe are very proud that UPS has once again been

ranked the ‘World’s Most Admired’ company in its

industry in the annual Fortune magazine survey. UPS

received the highest overall rating (see table) on nine

criteria, including quality of management, quality

of products and services, innovation, financial sound-

ness and global business acumen. Beyond our own

industry category, UPS was also voted as one of the

top 10 companies worldwide for attributes such as

innovativeness, employee talent and social respon-

sibility. Indeed, UPS was ranked No. 3 in the world for

the quality of its products and services, behind Toyota

Motors and Intel.

New: Shipping ProhibitedArticles on a ContractualBasis with UPSThere are a number of commodities that are

prohibited from shipment by UPS, such as plants,

alcohol and perishables, etc. You can find a definitive

list in the printed UPS Service Guide or on this same

section at www.ups.com.

From July this year we will be introducing a new

service where certain items we list as prohibited, will

be accepted by UPS on a contractual basis.

This new contractual service means that we can

increase our flexibility for customers with specific

needs in this area and ensure that the appropriate

measures are in place to handle the commodities

correctly.

In order to qualify for consideration, shippers

need to fulfill certain criteria:

• Meet minimum international shipping volumes

• Ship listed prohibited articles of the same type

to regular destinations

• Comply with current government regulations or

laws applicable in each country

• Ship to approved destination countries that we

can accept the commodity for.

If you are interested in learning more, simply

notify your UPS contact or call centre for further

information.

All prohibited items remain prohibited for

acceptance in our system unless covered by a specific

UPS prohibited articles contract.

Information is power and when it

comes to shipping, you don’t need

detective skills or a blood hound to

solve the question of “Where is my

package?” What’s more, you can dem-

onstrate superior investigative skills

by readily having the answer to other

usual shipping mysteries such as: When

did my package arrive? Who signed

for it? What’s my tracking number?

Do you have a signature? And I’m sure

you’ve heard more.

The answer is elementary – use

UPS OnLine™ Tracking™ and you can save

time and enhance your customer service

simultaneously.

Use tracking to access proof of

delivery, easily.

Where’s my package?You can track online at

www.ups.com anytime

you want to know the

status of your shipment

or its delivery details.

Click on the track icon on your country

home page and simply enter the Tracking

Number of your shipment.

Decipher the codeMake it even simpler and enter your

own information in the reference field on

UPS shipping documentation (such as

invoice/order number, dept code, etc.) and

you can track using this reference instead.

No need to look up or try and remem-

ber the UPS tracking

number.

Who signed for it?Use UPS Signature

Tracking™ and you can

see a digitised image of

the recipient’s signature as

well as full delivery infor-

mation. To sign up for this

free service:

1. Click on the Tracking icon

on your country home page.

2. Register and request your

UPS Signature Tracking PIN

(this helps prevent unauthorised

access to your specific delivery

information).

3. Activate the PIN (note the

PIN is sent to the UPS shipping

contact at your company who then

forwards it to the requestor).

4. Start Tracking.

Not only is the image of the signature

the ultimate proof of delivery, but also your

accounts department will find the infor-

mation useful, should they need to quell

invoice disputes.

Tracking onthe move

You can

also track your

shipments,

wherever you

are, using

UPS SMS Tracking, via your mobile

phone. Simply:

1. Select the message option on your

mobile phone.

2. Select the ‘write’ message option.

3. Key in the letters UPS and your

tracking number (no spaces) (e.g.)

1Z4359006642849337.

4. Press ‘send’.

5. Enter your local UPS SMS Tracking

phone number or log onto your country

website tracking page.

By adding the letters ‘UPS’ in front of

your number we will proactively send you a

message once your shipment has been

delivered, with details of time and recipient

name, etc. If you omit the UPS letters, you

will get an immediate status reply message.

Enhance your customer service by making

tracking information more accessible.

What’s my tracking number?Integrate our tracking information into

your website and your customers can

track directly from it, without needing to

call you for information on their shipment.

If you use our shipping solutions

to create your shipping documenta-

tion (UPS Internet Shipping/UPS OnLine

WorldShip) you can

automatically

trigger a proactive

email shipment

notification to your customer. This email

lets them know their goods are processed

and provides them with the unique UPS

tracking number. So they can track their

shipment themselves without needing to

call you.

Tracking can make your life easier internally

too.

Where’s the package I sent?Integrate our tracking information into your

own Intranet using our UPS OnLine Tracking

Tool and all your staff can track ship-

ments easily.

Don’t duplicate effortIf you ship using UPS Internet Shipping

or UPS OnLine WorldShip, you can also

track multiple packages at once and use

the information from your stored shipment

history files, so you don’t need to re-key

the tracking or reference numbers.

You can rely on the 21st century de-

tective powers of tracking online, it’s

simple and useful. Just look at the

statistics:

■ UPS introduced package tracking on

www.ups.com in 1995. Currently we

get over 6.5 million tracking requests

on our website every day

■ UPS functionality can be found on

more than 54,000 websites and these

customer sites generate 22 per cent of

our tracking requests

■ No surprise then that www.ups.com is

one of the most active sites on the Internet.

UPS: 1Z 435 900 664284 933 7Delivered on:Apr.3,20027.55A.M.NEW YORK, USA

company stores customer information in

its central database, you can easily link

these fields with the Receiver database on

UPS WorldShip and import or update them

whenever required by simply selecting the

import button.

The flexibility of linking the

UPS WorldShip fields and saving spe-

cific links as ‘mapping profiles’ within the

application enables easy repeat access.

Information can be uploaded via disk

and imported into the Open Shipments

Database as frequently as required.

How do I go about importing data?1. Prepare the file for import according

to the import file specifications you

can find listed in the UPS WorldShip

Help Menu.

2. Select File then Import from the

menu bar to access the Database

Import Window.

3. In the Database Import Window map

your external file with your internal

database fields.

4. For more detailed instructions refer

to the Import section in the UPS

WorldShip Help menu.

NewAirbusjoin UPSairfleet

This April we welcomed two new

Airbus 300F4-622R aircraft to our

European airfleet of UPS Browntails.

These are the first UPS Airbus to fly

in Europe and fly daily between our main

European air hub in Cologne, Germany

and Madrid, and between Cologne and

Scandinavia respectively. The two new

aircraft replace former charter agree-

ments and meet our needs for increased

capacity and fast, reliable delivery.

The UPS version of the A300-600

includes design changes to increase

efficiency and capacity. With a maximum

structural payload of 50 tons and a range

of 2,500 nautical miles, the new Airbus

meet the strictest US and European

noise and emission reduction standards.

Did you know UPS owns the world’s

11th largest airline?

Do you have what it takes?Would you have guessed…that the typical European business leader speaks on average 1.25 foreign languages? That he – or she – spends about two hours in meetings on a typical

workday and sleeps at least six hours per night?

Customer Case Study Service Focus

UPS Return Services. Now your goods cancome back as easily as they goIf you have ever had the need to organise the return of items from customers, you’re probably aware of the challenges. The desired return solution may vary by

company and industry, but it is unified in the complexity that has traditionally been involved in managing the process.

UPS’s Return Services can make

a significant difference by meeting a

whole range of reverse logistics needs

and removing complexity from the

equation. For example, you can:

■ Arrange for UPS to create and deliver

your return shipping label to your

customer and collect the item for return

■ Pre print return labels that can be

included outbound with your original

goods

■ Have the return label mailed directly

to your customer

■ Email the return label to your customer

■ Make the return label available via

your internal or external website,

where it can be printed directly

from your employees’ or customers’

Internet browser.

So the options are wide but easy

to access. To give you more of a feel,

here are a few examples of how UPS

customers in Europe are using the

UPS Return Services today:

Vangerow System WerkstättenVangerow specializes in the repair

and return of consumer electronics.

Retail outlets contact Vangerow either via

the web, phone or fax to request a ‘return

and repair’ of a product. By integrating

UPS returns functionality within their

existing system (ERP) the repair order

information is automatically transmitted

to UPS. The item is collected by UPS

and brought to the Vangerow repair facility

suitable for that specific item. The benefits

to Vangerow include a faster collection of

goods needing repair, increased visibility

of what ‘returns’ are where and a seam-

less integration with their existing ERP

system. By automating the process

Vangerow has also created significant

financial savings.

JAB Josef AnstoetzAs one of Europe’s largest traders of

furniture, fabrics and carpets, JAB chose

UPS Print Return Label as their preferred

solution. This means they generate a pre-

printed return label from our shipping

software and send it to customers with

an item for return. They also include all

necessary instructions on how to package

and return the item via UPS. JAB feels

the solution offers a smooth, professional

solution, which has received very positive

customer feedback.

Rocla OyjAs a manufacturer of forklift trucks

with an international distribution network,

providing an effective solution for the

return and repair of parts has been a

challenge. Rocla Oyj were able to gain the

control they were looking for with the UPS

Returns Plus service. A collection request

is transmitted by the Rocla Oyj HQ in

Järvenpää directly to UPS. A return label is

printed out in the UPS centre closest to the

customer and hand delivered by the

UPS driver. The part for repair is

not only returned swiftly,

but also the reference

information on the

label ensures that

Rocla Oyj can

identify the part

when it arrives

and know exactly

what to do with it.

An enhanced cus-

tomer service and

no more surprises.

How do I access the UPS Return Services?

Using UPS Return Services

couldn’t be easier. The services are ac-

cessible using our free shipping software

UPS OnLine™ WorldShip™4.0 or can

be integrated into your own Enterprise

systems. The UPS Return Services are

available across the EU*. For more infor-

mation, email us at tellus@upsforum.com.

*Excludes Greece and Luxembourg.

About the survey:

The UPS Business Monitor surveys 1,500

business leaders from Europe’s top 15,000

companies on an annual basis across Belgium,

France, Germany, Italy, the Netherlands, Spain

and the UK. Respondents are at director level.

The average turnover of businesses interviewed

was $1.28 billion; average employee size is 3,395.

Interviewing is conducted in the respondents’

native tongue at the TNS Research international

telephone unit in London, UK.

Visit the UPS Europe Business

Monitor at www.ebm.ups.com and

take a look at the latest results of the

work life and habits of Europe’s top

business leaders and see how you and

your countrymen measure up.

Parlez-vous…anglais?If you are Belgian, you’ll be proud to

hear that you are the polyglots of Europe.

Indeed, while 45% of Europe’s business-

men speak at least one foreign language,

39% of Belgian business leaders speak

at least three languages other than their

own. The British, not really surprisingly,

find themselves at the other end of the

linguistic proficiency scale: a significant

63% of top UK executives speak only their

mother tongue.

Luckily for the British though, English

is by far the lingua franca of business, with

85% of European executives speaking

it well enough to conduct a meeting in

it. French is the second predominant

language: 45% of business leaders can

share it when getting together. German

gets the third position, spoken by 29% of

our European panel and an incredible 67%

of the Dutch top managers.

Confined in the boardroom all day?

English might be the undisputed

language of business meetings but these

meetings certainly do not go on all day.

Indeed, the findings of the latest UPS EBM

shatter the cliché of top managers confined

to the boardroom for the day. On average,

Europe’s business leaders spend about twohours a day in meetings with only a slight

national variance. A quarter of the British

and the Dutch spend four hours or more

behind closed doors, while more than 65%

of the French and the Italians never spend

more than two hours in a tête à tête.

Are you getting enoughsleep?

If your boss has ever told

you that you’ll have to learn to

thrive on only three

hours sleep per

night if you want to

earn that big pro-

motion, he – or she –

was wrong.

In fact, Europe’s top

managers get plenty of beauty sleep: one

in five of the Dutch and the Belgian exec-

utives and one in six of the Spanish sleep

more than seven hours per night. French

top managers appear to be slightly more

restless: 10% of them toss and turn and end

up getting less than five hours of sleep a

night.

So how do you compare?

If you would like to know more about

these and other results, past and present,

of the UPS Europe Business Monitor, visit

www.ebm.ups.com. Results are in local

language.

? What is dimensional weight?

a Let’s go back to our initial question. Which is

more costly to ship, a tonne of gold or a

tonne of feathers? While they might weigh

the same, the shipping costs (excluding

insurance!) are likely to be more for the

feathers.

Why? It is standard practice in the trans-

portation industry to apply a dimensional

weight formula, which allows transportation

companies to charge for the dimensional

weight of light products. The reason for this

is that a tonne of feathers would typically

take up more space than a tonne of gold in

a truck or aeroplane. And space is a costly

commodity for which transportation com-

panies need to charge accordingly.

? How is dimensional weight calculated?

a It is determined as follows:

1. Weigh the package in kg.

2. Measure the dimensions of the package –

(round to the nearest whole cm) – multiply

the package length by the width by the

height.

This total is the cubic size of the shipment.

For multiple package shipments, add the

cubic size of each package together to get

a total shipment cubic size.

3. Divide the cubic size by 6,000 to give the

dimensional weight (in kg).

4. Compare the actual weight in kg of the ship-

ment (1) with the dimensional weight (3). If

the dimensional weight is greater than the

actual weight, record both the dimensional

and actual weights on the UPS shipping

documentation.

The formula is:

L x W x H6,000

Where: L = length in cm

W = Width in cm

H = Height in cm

For example, a package weighing 5kg and

measuring 40cm x 40cm x 45cm would be

charged by its dimensional weight. This is

because 40cm x 40cm x 45cm = 72,000cm,

divided by 6,000 = 12kg. The dimensional

weight is greater.

? Why does UPS charge by dimensional

weight?

a The formula shown above is the IATA (Inter-

national Air Transport Association) standard

calculation and is used by all companies in

the air industry.

? What happens if we do not show

dimensional weight?

a You may get a surprise on your invoice. UPS

hubs are equipped with DWS machines

(Dimensional Weight Scanners) which, using

laser beams, automatically measure the di-

mensions of every package passing through

a hub and instantly calculate the dimen-

sional weight as well as weighing the actual

weight of each package. We can therefore tell

which packages should be charged by their

volumetric size and which not.

By linking this information to the shipment’s

tracking number and our billing system, we

bill all packages for their true actual or volu-

metric weight (whichever is appropriate).

? What’s in this for me?

a It is highly likely that all major carriers will

apply the same charging principle, however,

UPS’s formula for calculating dimensional

weight remains the same for all services and

destinations. This could well give you a cost

advantage as some other carriers increase

the calculation charge according to des-

tination, mode of transport and service level.

E.g. non-Express, ground services may be

divided by 4,000 instead of 6,000. This gives

a 50% higher volumetric weight. Using the

package in the example above, it would

have a volumetric weight of 18kg and thus

be more expensive than the UPS calculation.

? How does this work if I use UPS shipping

systems to process my packages?

a Easily. Calculating the dimensional weight is

made simpler if you use UPS Internet Shipping

or UPS OnLine WorldShip.

1. If you prepare your shipment documentation

using UPS Internet Shipping, you have

the ability to enter the actual weight of your

shipment and the dimensions. If you then

‘Review Shipment’ details before processing,

you see a summary of all information

relating to your shipment including the

‘billable weight’. The calculation is done

automatically and you can see if the cost

has been determined by the actual or

dimensional weight.

2. If you use UPS OnLine™ WorldShip™ to

process your packages, you have the option

to enter the shipment dimensions package

by package or the total dimensional weight,

whichever you find easiest. For shippers

who regularly use standard packaging, you

can pre-define the dimensional weight of

your packaging within UPS OnLine WorldShip,

to avoid having to rekey the informa-

tion each time. You can do this under

the Activities menu/database maintenance/

packaging.

Note: There is no limit to the total shipment weight ornumber of packages in a multiple package shipment,however, the maximum weight per package that we canaccept is 70kg. Maximum dimensions are 270cm inlength and maximum size per package is 330cm inlength and girth combined.

Why did the colour brown become

the global trademark of the world’s

largest package distribution company?

It’s a question we have been asked

many times before.

The story starts with the purchase of

UPS’s first delivery vehicle, a Model T Ford,

bought in 1913 for $290. UPS painted it

bright red. The next addition to the fleet was

painted yellow.

The idea was that if each new vehicle

was painted in a different colour it would

create the impression that the fleet, still

very much in its infancy, was bigger than it

actually was.

In 1917, one of the founders, Charlie

Soderstrom, decided that the company

livery should be more conservative and

reflect a more businesslike attitude.

The core of the UPS business in those

days was as the delivery arm for many

stores. Stores were just beginning to out-

source delivery and many wanted to avoid

drawing attention to the fact – so a discreet

image was needed. The final factor was

the need for a colour that would not show

dirt from journeys on dusty roads.

A clear leader met the criteria –

Pullman Brown – which was also the colour

used on the much-admired Pullman train.

Pullman Brown was adopted as the

company expanded firstly across the US

and then worldwide. Since then it can be

seen on each and every one of our vehicles.

UPS even has the colour trademarked.

So, what’s in a colour? Over 530,000

litres of brown paint are needed to keep

UPS’s global fleet of package cars in

top condition and a further 13,000 litres of

paint are needed to coat our airline (the

11th largest in the world). With 88,000

vehicles there’s no need to make the

fleet look larger by painting the vehicles

in different colours!

In 1919 UPS began to introduce

uniforms for its drivers and the material for

these was…brown. To this day we still

have the material specially made. It takes

1,530 kilometres of brown cloth and

280,000 miles of brown thread to outfit

our 78,000 drivers. That’s 459,000 shirts,

303,000 trousers and 192,000 pairs

of shorts!

What’s in a colour?This year UPS celebrates 95 years in business. You might know something of our long history or our humble origin in Seattle,

Washington in 1907. However, you might not be so familiar with the history of our corporate colour.

We want to hear from youRemember – this newsletter is just for YOU!

Your opinion is important to us and we’d love to hear whatyou think of UPS Forum, any suggestions you might have andstories (funny or not) that you’d love to share. Send them totellus@upsforum.com What’s more, if you know of someonewho would like to receive UPS Forum regularly, give us theirdetails and we’ll make sure they don’t miss out!

UPS Forum is published several times a year by United Parcel Service for managers and executives of firms whose scope for business is

within Europe, Middle East and Africa. Reproduction of UPS Forum in whole or in part is prohibited without written permission. Persons or

publications quoted and the comments of guest contributors do not necessarily represent the corporate opinion of United Parcel Service.

We welcome questions and comments from readers. Please forward correspondence to: Forum Editor, UPS Europe S.A./N.V., 5 Avenue

Ariane, 1200 Brussels, Belgium.

Q. When does a tonne of featherscost more than a tonne of gold?

A. When it’s in a big boxContinued from front cover.