It’s Your turn: tell us about Your uPs drIver Page 10

Smart LogiSticS to grow your buSineSS comPass.uPs.com Summer 2012

to chance?

Are you leaving your

Inbound LogIstIcs

How coordinating your incoming inventory and supplies could save big money 6

minimize freight delays at the u.s.- canadian border with a new web solution 2

show time: turn your next trade show into a hassle-free hit 4

What new rules for shipping lithium batteries mean for you 3

Plusstart planning now! the uPs year-end holiday schedule 11

2 COMPASS S U M M E R 2 0 1 2

[ first stop ]

When trucking freight across the U.S.-Canadian border, businesses can get slammed with the paperwork stemming from stepped-up security measures. UPS BorderReady™ can streamline customs clearance by eliminating some data-entry tasks, and the hours and errors that come with them. UPS BorderReady – a web-based solution for importers and exporters from UPS Customs Brokerage – integrates with your own systems to:

l Prepare e-manifests and commercial invoices using the same data.l Auto-populate government forms, including NAFTA Certificates of Origin.l Store critical information for quick retrieval, as information is transmitted

and received in real time.l Eliminate having to manually re-enter repetitive data using built-in templates.l Receive and monitor customs release messages around the clock.

With UPS BorderReady, you can help minimize delays by informing customs authorities in the United States and Canada before your shipment even arrives at the border. Learn more about UPS BorderReady and other international tools from UPS at ups.com/brokerage.

Printing files from the road just got a whole lot easier. With the HP ePrint Public Print Locations network, you can now print at more than 4,300 locations of The UPS Store® nationwide. Simply geolocate a nearby The UPS Store location, submit a print job and then pick up your order at your con-venience. Get started today and download the HP ePrint service mobile app at theupsstore.com/ePrint.

Whether you have a customer whose production lines are stalled waiting for a part or a client who needs to sign off on an important legal document, the earlier the delivery the better. And, for 2,600 ZIP Codes, UPS morning delivery times have recently been improved. UPS Next Day Air® Early A.M.® packages in these ZIP Codes arrive by 8 a.m. and UPS Next Day Air® packages are guaranteed by 10:30 a.m. UPS delivers to more ZIP Codes and businesses by 8 a.m. and 10:30 a.m. than anyone.

For a complete list of ZIP Codes where Early A.M. service is available – along with the committed delivery times – visit ups.com/earlyam.

416,000: The UPS air hub in Louisville, Ky., can sort 416,000 packages or documents per hour. 2,484: The UPS fleet includes 2,484 alternative-technology and alternative-fuel vehicles, including those powered by electricity, compressed natural gas and propane. 32.1 million: More than 32 million

online tracking requests are processed on an average business day. 100: Percentage of Canadian addresses to which UPS delivers. 1929: UPS began offering air service through private airlines in 1929. The service ended two years later, during the Depression, but was reintroduced in 1953.[ Ups ticker ]

[ Brokerage NeWs ]

Crossing the line

[ MoBile solUtioNs ]

Print on the go

[ eXpaNDeD serVice ]

ThE EArly BIrD

vEn

EziA

: jO

hn

SCh

wEi

KERT

; CA

nA

DiA

n f

LAg

: BEn

jAM

in R

On

DEL

/CO

RBiS

S U M M E R 2 0 1 2 COMPASS 3

[ NEW REGULATIONS ]

Shipping batteries On Jan. 1, 2013, new regulations

for shipping lithium batteries become mandatory for all international air shipments. (New federal regulations for shipping lithium batteries within the United States are expected to be published this December.) Shippers are responsible for meeting these regulations and may face penal-ties and fines for noncompliance. A major risk of shipping lithium batteries is a short-circuit while in transit. So, all bat-teries must be packed to eliminate this possibility. Batteries should be individually wrapped or bagged, and terminals should be covered with tape. The International Air Transport Association provides tips and guidance at iata.org. (Enter “lithium batteries” into the search function.) Additional information can be found at ups.com/batteries.

[ 3 REASONS … ]

… to uSe PaPerleSS InvoIceWith uPS Paperless® Invoice, you can send shipments around the world without having to include three copies of your commercial invoice. You just enter your information electronically, and it’s used to clear your shipments through customs. Here are three advantages:

there’s no additional software or cost. You just enter your shipment commodity details into your existing uPS shipping system.

the process is streamlined, helping to eliminate missing information and problems with forms that often hang up packages in customs.

You’ll save time and money when your packages clear customs without delay. Plus, managing the information electronically saves trees, too.

GET STARTEdTo learn more about UPS Paperless Invoice or to

enroll, visit ups.com/paperlessinvoice.

416,000: The UPS air hub in Louisville, Ky., can sort 416,000 packages or documents per hour. 2,484: The UPS fleet includes 2,484 alternative-technology and alternative-fuel vehicles, including those powered by electricity, compressed natural gas and propane. 32.1 million: More than 32 million

online tracking requests are processed on an average business day. 100: Percentage of Canadian addresses to which UPS delivers. 1929: UPS began offering air service through private airlines in 1929. The service ended two years later, during the Depression, but was reintroduced in 1953.

123

[ FIRST PERSON ]

return to senderThree years ago we started includ-ing a return label with all of our

rentals. With UPS Returns,® when patients no longer need their rented Roll-A-Bout to get around, they can just stick the label on the box and take the package anywhere that accepts UPS. It’s a convenience for our customers – they don’t need to call us for instructions when they need to return

the package – and it’s a productivity advantage

for us.

— Dominick venezia, general

manager for Roll-A-Bout, a Delaware-based company that

brings mobility to people with lower-leg

restrictions

4 COMPASS S U M M E R 2 0 1 2

[ trade shows ]

Learn how shipping smart can turn your next trade show into a hassle-free success.

n an age of teleconferencing and remote buying, trade shows attest to the enduring power of holding a product, kicking a tire or two and, most of all, seeing valued contacts face to face.

“The vast majority of trade show attendees influence purchases,” says Joe Federbush, vice president, sales and

marketing, Exhibit Surveys Inc., which specializes in trade show research and trends. “For example, 81 percent have a buying role, and 50 percent of visitors to exhibits have buying plans for products they’ve seen on the show floor within the next 12 months.”

Yet while thousands of motivated buyers and sellers in a single space for two or three days can create the ulti-mate business-to-business opportunity, the compacted time frame means high stakes. Every minute an exhibit isn’t up and running could mean a lost sale or a relationship that never forms. Display materials must arrive reliably on time, in good condition and ready to make you look your best.

ONE EXHIBIT MATTERS MOST“The trade show business is unlike any other,” says Greg Risner, head of the Trade Show Group for UPS Freight.® Getting dozens or hundreds of

exhibitors set up for a successful show at the same time, in the same place, requires a symphony of well-coordinated motions, including deliveries.

For any individual exhibitor, of course, there’s just one exhibit that really matters: theirs. But amid the chaos, it can be easy for a lone exhibitor to feel a bit overwhelmed. One key is to ship early. Sending materi-als directly to the arena or convention center a day before the show starts may sound efficient, but your exhibit could get bottlenecked at the loading dock, especially if the show is large. Plus, there’s little margin for error if the exhibit encounters any unexpected problems with delivery.

SHIp EARLy, SAvE MONEyMost shows allow shipments to an advance warehouse up to a month ahead, says Jack Savage, regional direc-tor for UPS Freight in Las Vegas. You get peace of mind in knowing your materials arrived safe and sound, with time to correct any problems. Before

Exhibition

HALL B

ROAd

TRAdE ShOwS by ThE nUMbERS:

36Percentage of show attendees

who are first-timers

8.3Average number of hours

attendees spend viewing exhibits

81Percentage of attendees

who have a buying role at their companies

Source: Exhibit Surveys Inc.

show

S U M M E R 2 0 1 2 COMPASS 5

your shipping checklist for a trouble-free trade showJack Savage, regional director for UPS Freight in Las Vegas, says a few simple steps in shipping can help make your next trade show a success:l Select packaging materials strong enough to protect

your exhibits in transit.l Remove all previous labels from boxes and crates prior

to shipping.l Affix the new label with clear, strong tape, and

include the trade show name, a phone number and your booth number.

l Take advantage of advance warehousing to eliminate tight delivery windows.

l Include deliver-by date on the bill of lading for advance warehouse shipments.

l Choose the appropriate (and most cost-effective) means of transportation for your specific materials.

l If you’re doing multiple shows, consider shipping directly from one show to the next to cut costs and transit times.

For other ways to make your next trade show or convention a success, visit ups.com/tradeshow or contact UPS Trade Show Services at 1-800-988-9889.the show, workers move items seamlessly from the staging

warehouse to the show site. “When you arrive, all you have to do is find your booth and you’re ready to go,” Savage says. Shipping early also can help you avoid paying for more expedited travel, such as air freight.

One of the most vital ways to ensure success is find-ing a trusted shipping partner that understands how important trade shows are to your business, says Susan Hueg, director, exhibitions and events for NBM Shows, based in Colorado. NBM Shows, a unit of the prominent business publisher National Business Media, designates UPS as the “official show carrier” for each of the major domestic trade shows it hosts each year. “It’s very impor-tant to us that our exhibitors feel taken care of,” Hueg says. Her company also uses UPS to deliver its own booth and exhibit materials when participating in shows run by others.

In fact, UPS Trade Show Services has 14 regional trade show managers around the country who are dedicated spe-cifically to meeting the needs of these unique customers.

“We understand the specifics of how shows operate, and communicate closely with those running them,” says Dana Caron, a marketing manager for UPS. Thanks to UPS Freight’s Pickup Notifications for LTL (less than truckload), you can receive e-mail alerts letting you know

Exhibition

HALL B

when the pickup is scheduled, when the driver is on the way and after the pickup has been completed. “UPS gives you complete pickup visibility,” Caron says.

NO SuRpRISESOrleans Group International LLC, which specializes in high-quality cigar humidors and accessories, participates in several U.S. trade shows each year. For the major annual show held by the International Premium Cigar & Pipe Retailers Association, Orleans Group packs an entire truckload with enough merchandise to fill a 60-by-40-foot booth, plus backdrops, stands and even fragile glass cases.

The commitment is more than worth the effort, says Bianca Melone, Orleans Group’s trade show coordinator: “People want to see firsthand what your new products are, not just look online or read a catalog. They want to see and feel the goods.”

That’s why packaging and shipping are crucial. “If some-thing’s damaged, we can’t display it,” Melone adds. “When I open up a crate, the last thing I want are surprises. UPS really steps up to the plate – they’re the only people I would trust.”

[ case studY ]

Controlling all incoming inventory and supplies could save you big money.

chance?Are you leAving your inbound logistics to

a boutique that sells shoes made in Italy. An electronics manu-facturer that stores parts from distributors across Asia.

A hotel company with nonstop procure-ment needs. Almost all companies receive incoming shipments of some kind – raw materials, supplies, product – but very few have taken a good look at that process to find ways to save.

“Less than half of our customer base actually takes control of their supply chain in its totality,” says Matthew Hanna, a marketing manager with UPS. “That’s a shame, because it’s one area where cus-tomers can save money.”

Staying on top of what comes into your business can be just as critical to your bottom line as optimizing what goes out. And many companies simply leave their inbound logistics to chance, with vendor decisions or default shipping options chipping away at profits.

[ cover storY ]

6 COMPASS S U M M E R 2 0 1 2

For Pro Marine, a marine engine parts manufacturer, a simple change represented a sizable savings. General Manager Tony December asked his suppliers to send ship-ments using his company’s UPS account number. He estimates that with its UPS negotiated rates applied, the company instantly started saving about 35 per-cent in inbound shipping costs. And he says many of his vendors were unable to explain why they opted for a particular shipping mode or speed: “As soon as I hear, ‘This is just how we do it,’ I know there’s been no research as to why they’re shipping that way.”

When you’re in control of your inbound logistics, you also know where your ship-ments are and when they’ll arrive. You know who placed the order and where the costs should be allocated. Most important, all your key personnel know what’s in each shipment, so everyone can perform at peak efficiency, from the manager who staffs the receiving department to the salesperson who tells your customers when products will become available.

It’s not just big manufacturers that benefit from better inbound logistics. Any size business of any kind can improve efficiency and save money by taking charge of what comes into the company. Stop leaving your inbound logistics to chance with these simple steps.

Seize your incentive. “The first thing you absolutely have to do is, you need to start using your account number for your shipments and take advantage of freight collect,” Hanna says. “Start with your top three or four vendors. Let them know that shipments must be charged to your account number. Now you’re building toward volume discounts.”

control your Shipping Speed. You may not need the materials you ordered until next week, but your supplier always ships air freight. If you had been in control of that shipment, you could have chosen to send it LTL (less than truckload) instead. When you use only the speed you need, you operate more cost effectively.

See what’S in there. Somewhere in all the boxes in your receiving department is one “hot item,” such as a part that must go out with an order today. But it’s mixed in with boxes of supplies, inventory and returns. Typically, employees open half the boxes in search of the missing item. “An open carton leads to loss,” Hanna says. “People have basically been rifling

through inbound inventory, while outbound items are waiting to go out the door.”

If those workers had UPS Trackpad®, a hand-held device that monitors pack-ages from dock to desk, they could have scanned the cartons as they came in and seen what was included without having to look for a packing slip or look through the box. The hot item would have been found much faster.

Monitor vendor coMpliance. Through UPS’s vendor management technology suite, we can ensure purchase orders are on all incoming shipments. This means you can improve cost-allocation accuracy and understand your total cost of ownership.

Staff intelligently. When you’re in con-trol of your inbound logistics, you’re in control of your staffing needs, too. With Quantum View® Manage, you can see the

movement of incoming shipments – and staff accordingly.

gain greater efficiency (and accountability). MGM Resorts International, a leading hospitality company based in Las Vegas, installed a UPS technology solution that connects its back-office procurement and inventory software system to simplify shipment scheduling and automatically ensure correct cost allocation through purchase order numbers. “We are very much trying to use all this to drive efficiency in our costs,” says David Jeshurun, director of strategic sourcing in the global procurement division at MGM.

plug everyone into the loop. If your sales staff can see only what’s in stock right now, all they can communicate to customers is whether a product is available right now. But if they have visibility of inbound shipments as well, they can sell into the future. The next customer service call might go like this: “We don’t have any of those in stock right now, but our next delivery is scheduled for tomorrow. I think I can fulfill your order the day after.” That translates to greater customer satisfaction.

stop rolling the diceHow can your company take control of its inbound logistics? Contact your UPS account manager or

visit ups.com/customersolutions for more information about end-to-end logistics solutions.

Staying on top of

what comes into your

business can be just as

critical to your bottom line

as optimizing what goes out.

S U M M E R 2 0 1 2 COMPASS 7

8 COMPASS S U M M E R 2 0 1 2

eBioscienceManufacturer of clinical and research products.

Founded: 1999Locations: San Diego (headquar-ters); Frankfurt, Germany; Hatfield, U.K.; Vienna, AustriaEmployees: 288Website: ebioscience.com

Scientists at eBioscience spend their days working at the cellular and molecular level, developing antibodies and reagents. These

chemical substances are used to cre-ate a reaction in combination with biological samples from humans and animals. The substances serve the scientific research and clinical commu-nities. When it came time to expand its European footprint, however, the company’s operations team needed more than superior science – they turned to logistics experts from UPS.

“In 2008, less than 20 percent of our business was in Europe,” says Tony Ward, vice president

eBioscience expands its European footprint with a new logistics formula from UPS.

“We have to be able to change processes quickly,” says Austin Zoutis, vice president of information technology and business integrations at eBioscience. This speed is why the company turned to UPS for its shipping needs.

chainSciEncE

of commercial operations. “The goal was to broaden our reach and increase European sales to more than 35 percent of revenues.”

comPLiAnT And coST-EFFEcTivEFrom the outset, eBioscience benefited from UPS’s ability to understand the company’s vision, formulate a tactical plan, and act as a liaison with the U.S. Food and Drug Administration (FDA), customs and other interna-tional regulatory bodies. Key UPS tools also have helped, including a predetermined import profile produced in advance, so that customs has all required paperwork.

Because of UPS’s pre-alerts to the FDA, the agency checks shipments and releases them within 24 hours, a process that took a week with a previous carrier. The company addi-tionally estimates that the improve-ments UPS made with international

Supply

[ case studY ]

DA

nA

nEi

bERt

S U M M E R 2 0 1 2 COMPASS 9

trade compliance saves them about a half-million dollars annually in inap-propriately levied import taxes.

PAckAging PErFEcTionThe combination of a cold supply chain and on-time delivery to maintain product quality is also essential. “Our products – which are used for critical research in the areas of immunology, cell biology and human disease – are subject to spoilage,” Ward says.

In the case of eBioscience, packag-ing needed to withstand two days’ travel time to Europe and up to 72 hours of package validation. This means the products must remain within the same temperature range, whether in customs or facing weather delays. “They knew their packaging at that time wasn’t in line with the needs for longer transit to Europe,” says Jeff Walsingham, a UPS health-care marketing manager.

Based on lab tests, UPS offered recommendations on the best pack-aging to meet eBioscience’s shipment integrity, coolant usage and cost requirements. As a result, the company was able to ensure product quality, as well as reduce package dimensions and transport costs, saving $125,000 annu-ally. More efficient packaging – using

gel packs instead of dry ice – also generated additional savings.

The resulting revenue and efficien-cies paid off in a secondary way: The company grew its European business to more than 35 percent of total sales. The company has established its European headquarters in Vienna, Austria, from where eBioscience serves the needs of its European customers, with the help of UPS.

While eBioscience initially was looking to simplify its supply chain and get closer to its clients, UPS was able to offer a whole lot more, including nearly 100 percent reli-ability in both the United States and Europe. Above all, UPS has been a critical partner in helping eBioscience “move business” – annual revenues have grown from less than $40 mil-lion to more than $70 million in just three years.

“We’re an innovative, fast-paced and fluid company, and we have to be able to change processes quickly,” says Austin Zoutis, vice president of information technology and business integrations. “Our growth has been a result of making the right decisions, and UPS offering solutions that could match our needs – both now and in the future.”

Air Shipping

challenge needing expertise in exporting, ebioscience turned to UPS to help increase European sales, while being mindful of the unique challenges in shipping medical products.

solutionUPS’s exporting, temperature-sensitive shipping and packaging capabilities have resulted in annual savings of about $500,000 through improved trade compliance and $125,000 in smarter packaging.

chilling outUPS hAS TEmPErATUrE-SEnSiTivE ShiPPing doWn coLd

keep it coolFor more information on cold-chain transportation, please contact your

UPS account manager or visit ups.com/healthcare.

temperature control is critical in the successful delivery of vaccines, biologics and other lifesaving healthcare products. UPS can handle the challenge: l Validated temperature-controlled storage and freezer capabilities including

cold chain (2–8 degrees Celsius), frozen, deep frozen and controlled room temperature.

l PDMA (Prescription Drug Marketing Act) and cGMP (current Good Manufacturing Practice) compliant distribution space.

l UPS temperature true® air freight service specially designed for safe door-to-door, temperature-sensitive global shipments of pharmaceutical and bio-pharma products.

l Full suite of passive, semiactive and active containers, including the PharmaPort 360 air freight container.

l Advanced monitoring by UPS control towers with the ability to intervene based on milestones, GPS and product condition.

Learn more about UPS temperature-sensitive shipping at ups.com/healthcare or scan the bar code above with your smartphone.

ScAn iT

8 COMPASS S U M M E R 2 0 1 2

[ case studY ]

UPS’s carbon neutral shipping fits Clean the World’s mission.

clean the worldA nonprofit that distributes excess soap from hotels to people in need.

Based: Orlando, Fla. Founded: 2009Employees: 35Website: cleantheworld.org

Ever wonder what happens to the soap you leave behind when you check out of a hotel? Shawn Seipler did and found out that

most of it – about a million bars a day – ended up in landfills. He also discovered that a million children die each year from diseases that can be prevented by soap.

With partner Paul Till, Seipler founded Clean the World, a nonprofit that collects soap and shampoo from hotels, sterilizes and processes it, and ships it to people in Zimbabwe, El Salvador, Nicaragua, Swaziland, Mali, Mongolia, Uganda, Honduras and other developing countries.

Clean the World now partners with 1,500 hospitality organizations in

North America, including Walt Disney Parks & Resorts, Starwood Hotels and Resorts, InterContinental Hotels Group and Caesars Entertainment.

Since its 2009 launch, Clean the World has distributed more than 10 million bars of soap and 600,000 pounds of bottled amenities in more than 55 countries.

BroadEning thEir rEaChClean the World founders wanted to extend their commitment to protect-ing the environment beyond keeping soap out of landfills. Searching for a shipping method that mitigated their carbon footprint, they chose UPS’s car-bon neutral shipping option.

With carbon neutral shipping, companies pay a small amount per shipment – as little as 5 cents for a ground package – to offset the carbon emissions generated during the ship-ping process. Another option is to

good, cleanWork

jOSE

Ph g

AM

blE

Since Paul till and Shawn Seipler launched Clean the World in 2009, they have distributed more than 10 million bars of soap to those in need. With UPS, they found an environmentally responsible shipping solution.

S U M M E R 2 0 1 2 COMPASS 9

have UPS buy offsets based on the emissions associated with all their shipments (see story below). The money raised in the carbon neutral program pays for initiatives such as restoring wildlife habitat in the Garcia River Forest in Mendocino County, Calif., and capturing methane from the Fujian Landfill site in southern China to generate clean electricity.

Clean the World ships nearly 2 tons of goods daily with UPS, so the carbon offsets add up quickly.

“With the UPS carbon neutral shipping program, our hospitality partners can extend their green initia-tives beyond soap collection and into the shipping of those amenities for recycling and distribution around the globe,” Seipler says. “The entire process is a sustainable, socially responsible solution that saves lives and protects the planet.”

tWiCE thE PartiCiPationWhen the carbon neutral pro-gram launched, Clean the World announced it to its hospitality indus-try partners via an e-mail newsletter. The partners’ enthusiasm for the program led to a doubled increase in participation in the first week, says Amirah Aidi, UPS account manager. “Clean the World had hotels that were signed up [to collect soaps] but not participating,” she explains. “The popularity of the carbon neutral program played a big part in getting them to respond.”

The program also makes it easy for Clean the World to track its carbon offsets and report back to the hotels. “To do an in-depth analysis of the car-bon footprint on their own would be very expensive,” Aidi says. “With us, they just check a box when they create a label. It’s easy for them to use and there’s no setup required.”

Air Shipping

challenge Committed to distributing soap and shampoo to those in need, Clean the World wanted an environmen-tally responsible shipping method consistent with its mission.

solutionWith UPS’s carbon neutral shipping, the organization can send its hygiene prod-ucts to people worldwide while mitigating its envi-ronmental impact.

PEr PaCkagEWhen you prepare a shipping label with any UPS shipping system, select the UPS carbon neutral option. UPS adds a minimal fee – as little as 5 cents for a ground package – to purchase certified carbon offsets.

green 101 tWo WayS to CUt yoUr CarBon FootPrint

1

2 ContraCtUaL PrograMShow customers your company’s concern for the environment by purchasing carbon offsets for all your shipments on a contract basis. Your UPS account manager can help you get started.

UPS’s carbon neutral ship-ping can help you offset your carbon footprint. Choose one of two levels of participation:

Take your first carbon neutral step at ups.com/carbonneutral.

a CLoSEr Look at CarBon nEUtraLFor TOTO USA, a georgia-based manufacturer of plumbing products, UPS’s carbon neutral option was a perfect fit with its other sustainability efforts. See the story by scanning the bar code above with your smartphone or visit compass.ups.com/toto.

SCan it

8 COMPASS S U M M E R 2 0 1 2

[ case studY ]

Teed up for success

Retailer Budget Golf reaps the benefits of a fully integrated logistics plan.

Budget golfA national supplier of discount golf equipment.

Founded: 1999Based: Joliet, Ill.employees: 46Website: budgetgolf.com

Todd and Steve Messineo appre-hensively watched economic storm clouds gather in 2008 over their two Budget Golf golf

supply stores and their online sales ventures. The brothers calculated that without a quick scramble to stay on course, the recession could potentially erase 20 percent of company revenue.

“We decided to try and hold things flat,” Todd says. “And we knew the Internet was where we needed to go.”

The Joliet, Ill., enterprise focused its sales efforts on discounted golf products sold online, both on the company’s website and an eBay page. Instead of losing revenue, Budget Golf drove sales by 205 percent from 2008 to 2009. In seven months, the number of employees jumped from five to 28. The Messineos built a new warehouse

Brothers Todd and steve Messineo teamed with uPs to help grow their small business, Budget Golf.

to handle orders, then hustled to add a call center, as well as shipping/receiving and customer service departments.

Their silver lining had a cloud, though. Budget Golf had grown, but operations still relied on outdated practices. Most problematic was order processing done the old-fashioned way: by hand.

“We had so many orders coming in that it overwhelmed our system,” Todd says. “When we reached 1,200 orders a day – when we were filling out 1,200 orders a day by hand – those were some pretty long days.”

BiGGeR Funnel, sMalleR cosTsClearly, Budget Golf needed a more sophisticated logistics plan. The eBay order system didn’t talk with the point of sales inventory system. Neither of those systems talked with the online store. And no system integrated with the UPS shipping manifest system.

Every single day, staff arrived early to manually enter website and eBay orders into the point of sales system. M

Att

hEw

gIl

SOn

S U M M E R 2 0 1 2 COMPASS 9

The staffers then keystroked sales orders a second time, now into the manifest system, which printed labels and shipping paperwork. When ship-ments left the docks, staff then typed shipment details into their systems a third time, so they could notify custom-ers their purchases were on the way.

“We were sucking orders through a straw,” Todd says of the growing pains. “We needed technology that would allow us to increase the size of the fun-nel without increasing our costs.”

RoundinG ouT The TeaMThe Messineo brothers called UPS to keep the ball on the green. “We really view UPS as a third extension of our company,” says Todd, referring to brick-and-mortar stores, e-commerce and their logistics partner. “UPS has the same dedication to customer service we have, and they bring a lot

more to the table than just taking a package from point A to point B.”

In fact, UPS brought a trusted team to the table. Whiteboard sessions and a complete analysis of the supply chain led to a UPS recommendation of a vendor partner, ADSI, an expert in integrating technology systems. Integrated systems would cut the knot of complexity that snarled Budget Golf’s order processing. UPS even subsidized the integration in exchange for a strong shipping contract.

In no time, Budget Golf had its swing back. “We now move 10 times the amount of packages with the same number of people – with no increase in labor costs,” Todd says. “The only increase we see is the num-ber of packages in the back room for shipping. Best of all, we are able to focus on growth opportunities instead of packages.”

Air Shipping

challenge Budget golf dreamed of a place on the leaderboard in one of the most competitive sectors of the sports market – golf product sales. Even in a subpar economy, its sales outgrew support systems.

solutionto outperform industry goliaths, this upstart needed a fully integrated order, fulfill-ment and sales systems. UPS supply chain creativity also shaved a stroke off delivery times – one full day – to 40 per-cent of Budget golf’s markets.

upgrade your siteleT uPs helP Make youR WeBsiTe RicheR

Looking for ways to increase the time your customers spend on your website, while empower-ing them to obtain the informa-tion they need when they need it – and still reduce your costs? Consider adding these APIs (application programming inter-faces) from the UPS Developer Kit to your website. The APIs require XML/web services pro-grammers to code and integrate.

to get started, register at mYups.comOnce you have your ID and password, visit ups.com/upsapi_integration to determine if the UPS Developer Kit APIs are a good fit for your organization.

l address Validation aPi: Verify the city, state, and ZIP or postal code information is valid.

l address Validation street level aPi: Verify the street address is valid, along with city, state, and ZIP or postal code.

l locator aPi: Search for UPS shipping locations based on type (drop box, the UPS Store,® Customer Counter, etc.) and services offered.

l Pickup aPi: Request a pickup for you or one of your customers.l Quantum View® aPi: Stream visibility data over the web into internal

applications from your Quantum View Data subscription.l Rating aPi: Compare delivery services and shipping rates to meet your needs.l shipping aPi: Print UPS labels from your internal business systems.l Tracking aPi: Obtain package status information for your shipments.l Time in Transit aPi: Compare shipping transit times of UPS services.l signature Tracking® aPi: Obtain proof-of-delivery information, which

contains a digitized signature and full delivery address.l uPs Tradeability® aPi: Prepare and manage international shipments with

Denied Party Screener, landed Cost and Import/Export Compliance.

8 COMPASS S U M M E R 2 0 1 2

[ case studY ]

Full speed

Stem-to-stern shipping improvements help Pro Marine serve customers worldwide.

Pro Marine usaManufactures and distributes aftermarket marine engine parts and related accessories.

Founded: 1988Based: Palmetto, Fla.Employees: 36Website: promarineusaonline.com

Whether you are harvesting king crab off the storm-tossed Alaskan coastline or just fishing for bottle

bass on a lazy weekend in northern Wisconsin, a boat engine that fails can ruin your whole day – or your entire vacation.

That’s where Pro Marine USA comes into play. The Palmetto, Fla., company manufactures aftermarket parts for inboard or outboard marine engines. It also offers original equip-ment parts from makers such as Mercury, Evinrude and Yamaha, and is the go-to company for many boat mechanics.

“Most of our customers don’t have the money to stock inventory, so our biggest problem is local competition

Tony December, Pro Marine’s general manager, says there’s more to his business than price. “People will pay for value and quality, especially when you can get it to them quickly.”

and people who sell on eBay,” says Tony December, Pro Marine’s general manager. “But there’s more to this business than price – people will pay for value and quality when it comes from a reputable source, especially when you can get it to them quickly. That’s why we want to get our prod-ucts into their hands in one or two days. It’s really just-in-time fulfillment – and speedy delivery is essential.”

REining in iMPoRT CoSTSWhen December joined Pro Marine three years ago, he had a vision of where the company could grow and how he could help improve things. First, he took control of inbound shipping from Pro Marine’s suppli-ers all around the world. “Until I came onboard, there was no effort to control how product was sent to us,” December says. “That was left up to the manufacturers, who were all using different freight forwarders, who all took a percentage.” jO

SEPh

gA

Mbl

E

ahEaD

S U M M E R 2 0 1 2 COMPASS 9

He turned to UPS for help with logistics, including container shipments and customs brokerage. “I estimate that using UPS has saved us 35 percent on inbound shipping costs alone,” December adds. “That doesn’t count the savings in time and headaches.”

SPEEDy PRoCESSingWith the inbound side of the busi-ness under control, December turned his attention to domestic shipping processes. “Before I came aboard, inventory was all handled manually, with no bar coding or online track-ing. Now every item, every bin and every shelf is bar coded,” December says. When an order is processed, it’s checked against a bar-coded invoice and enters Pro Marine’s in-house management system.

“Other companies have to give customers a cutoff time,” December

says, “but since we’ve streamlined with UPS, you can call us at 5:30 p.m. and we’ll still ship that same day.”

He credits that to integration. The company uses UPS Developer Kit APIs (application programming interfaces) on the Pro Marine website, which integrate with WorldShip® and Pro Marine’s invoice and inventory systems.

“If a customer calls late in the day to place an order, our system ‘speaks’ to WorldShip and tells it to print a label,” December says. “We can pick and pack a shipment in 10 minutes.”

Now, Pro Marine can ship 400 packages in an eight-hour day, when it used to take at least an hour longer, if not more. “WorldShip integration is key to running an organized and effi-cient business,” December says. “UPS has been an integral partner to mak-ing us faster and more competitive.”

Air Shipping

challenge To meet intense competi-tion, Pro Marine needed to speed up its inventory, ordering and shipping processes to deliver parts faster to its customers.

solutionThe company integrated WorldShip® with its own in-house inventory systems. Pro Marine can ship 400 packages a day in eight hours, when it used to take at least an hour longer. Orders ship out the same day, even if received as late as 5:30 p.m.

Less risky businessSaFEgUaRD yoUR gooDS WhEn ShiPPing in ThE U.S. oR aBRoaD

There’s not much room for error when it comes to the financial side of running a small business. That’s why Tony December of Pro Marine – and lots of other companies – have turned to Cargo Insurance through UPS Capital Insurance Agency* to cover shipping risk, warehouse risk or other contingencies – and improve cash flow. here’s how it works:

To learn more about Cargo Insurance through UPS Capital Insurance

Agency, visit upscapital.com.

1

2

3

DETERMinE WhaT yoU aRE Paying FoR inSURanCE noW. A big benefit of Cargo Insurance is that it is multimodal and multicar-rier – covering inbound or outbound shipping via ocean, air or ground, whether small package, mail or freight.

ESTiMaTE yoUR ShiPMEnT vaLUES. With Cargo Insurance you elimi-nate transaction-based coverage and pay a single annual premium based on total shipment values. That makes it much easier to forecast cash flow needs.

anaLyzE yoUR nEEDS. A Cargo Insurance specialist will gather infor-mation about what and how you are shipping, how it is packed, and the annual values. Warehouse risks can be included as well, eliminating the need for separate policies.

RECEivE a FiRM qUoTE. UPS Capital Insurance Agency works with insurance underwriters and shops coverage to get you the best possible quote based on your specific needs.

4

*Insurance is offered through licensed insurance producers affiliated with UPS Capital Insurance Agency, Inc., and other affiliated insurance agencies, which are wholly-owned subsidiaries of UPS Capital Corporation. The program is governed by the terms, conditions, limitations and exclusions set forth in the applicable insurance policy. Insurance coverage is underwritten by a national insurance company and may not be available in all jurisdictions.

[ Picture logistics ]

GoinG Global The first UPS driv-ers outside the United States were in Toronto, Canada, in 1975. They used former taxis, painted brown, to deliver packages because UPS hadn’t yet been granted a license to drive delivery trucks on Canadian highways.

15.8 million

start your enGines Each day, UPS drivers start out with a PCM (prework communication meet-ing), which includes a safety tip.

HelPinG HanD The hand-held DIAD was rolled out in 1990 in Mississippi, allowing drivers to electronically capture delivery information, including customer signatures. Today, the device can even be used for training videos.

trailblazers Today, alternative-fuel vehicles are not a rare sight, but UPS first started experimenting with electric-powered “package cars” in 1933 in New York City.

10 COMPASS S U M M E R 2 0 1 2

112,195leaDinG laDy In 1943, Mazie Lanham became the first female UPS driver.

Driving force

“DriVer” isn’t tHe HalF oF it. For many small and medium-size businesses, uPs drivers have become a trusted logistics adviser and an integral part of their team. tell us about your experience (details below).

The TeAM

dAily rouTine

on The roAd

Get into Gear UPS’s iconic brown uniform was rolled out in 1925. Those shorts, on the other hand, didn’t hit the streets until 1991, along with UPS-branded socks. They were first tested in Arizona, California and Puerto Rico.

25

5,800More than

UPS drivers have

years or more of driving without an

accident.

!

Number of packages UPS drivers delivered,

on average, every day in 2011.

Number of UPS drivers worldwide, which is the approximate population of

Berkeley, Calif.

The uniforM

ILLUSTRATION: OLIvER MUNDAY

tell us About Your Driver!Has your UPS driver done some-thing really outstanding to save

the day? Or become an integral part of your business’ success plan? Tell us how your driver is a hero at compass.ups.com/driver, and you and your driver could win a prize and have your story appear in Compass.

Q312H

S U M M E R 2 0 1 2 COMPASS 11

Scan it

2012 year-endHoliday Schedule

Peak-season service guarantees: Commitment times for air and international shipments delivered within the United States will be extended by 90 minutes on the following days: Nov. 23, Dec. 18–24 and Dec. 31. UPS air and international shipments picked up or delivered in the United States are guaranteed throughout the holiday season. The guarantee is suspended for UPS Ground and UPS Standard packages picked up or scheduled for delivery between Dec. 11 and Dec. 24. For further details, visit ups.com/tariff for the UPS Tariff/Terms and Conditions.

Download this schedule at compass.ups.com/holiday or scan the bar code to the right with your smartphone.

Thanksgiving tuesday, nov. 20n Normal pickup and delivery service for

air, international and ground packages. UPS 2nd Day Air® packages picked up today will be delivered Friday, Nov. 23.

Wednesday, nov. 21n Normal pickup and delivery service.

UPS Next Day Air® packages picked up today will be delivered Friday, Nov. 23. UPS 2nd Day Air packages picked up today will be delivered Monday, Nov. 26 (except those processed and labeled for delivery on Saturday, Nov. 24). Note: This is the last day to ship UPS Ground until Monday, Nov. 26.

thursday, nov. 22, thanksgiving Dayn No UPS pickup or delivery service.

(UPS Express Critical® service is available for urgent packages. Call 1-800-714-8779 or visit upsexpresscritical.com.)

Friday, nov. 23n Delivery of UPS air and international

packages only.n Pickup service provided for air and inter-

national shipments if prearranged by Wednesday, Nov. 21. UPS On-Call Pickup® service and all UPS Drop Boxes also are available for air and international packages.

n No UPS Ground pickups or deliveries today.

Saturday, nov. 24n Delivery of UPS Worldwide Express®,

UPS Next Day Air and UPS 2nd Day Air packages pro cessed and labeled for Saturday Delivery.

n Pickup of air and international packages for regular Saturday pickup customers or via UPS On-Call Pickup service.

ChrisTmas thursday, Dec. 20n Normal pickup and delivery service for air,

international and ground packages. UPS Next Day Air packages picked up today will arrive Friday, Dec. 21. UPS 2nd Day Air packages picked up today will arrive on Monday, Dec. 24.

Friday, Dec. 21n Normal pickup and delivery service for

air, international and ground packages. UPS Next Day Air packages picked up today will arrive Monday, Dec. 24. UPS 2nd Day Air packages picked up today will arrive Wednesday, Dec. 26.

Saturday, Dec. 22 n Delivery of UPS Worldwide Express, UPS

Next Day Air and UPS 2nd Day Air packages pro cessed and labeled for Saturday Delivery. Pickup service available for air and interna-tional packages only.

Monday, Dec. 24, christmas Even Normal delivery service for air, international

and ground packages. n Pickup service provided to scheduled pickup

account customers for air and international shipments if prearranged by Friday, Dec. 21. UPS On-Call Pickup service and all UPS Drop Boxes also are available for air and interna-tional packages to all customers.

tuesday, Dec. 25, christmasn No UPS pickup or delivery service. (UPS

Express Critical service is available for urgent packages. Call 1-800-714-8779 or visit upsexpresscritical.com.)

new year’s Friday, Dec. 28n Normal pickup and delivery service for air,

international and ground packages. UPS Next Day Air packages picked up today will arrive Monday, Dec. 31 (except those pro-cessed and labeled for delivery on Saturday, Dec. 29). UPS 2nd Day Air packages picked up today will be delivered Wednesday, Jan. 2, 2013. Note: This is the last day to ship UPS Ground until Jan. 2.

Saturday, Dec. 29n Delivery of UPS Worldwide Express, UPS Next

Day Air and UPS 2nd Day Air packages pro-cessed and labeled for Saturday Delivery.

n Pickup of air and international packages for regular Saturday pickup customers or via UPS On-Call Pickup service.

Monday, Dec. 31, new Year’s Even Delivery of UPS Worldwide Express, UPS Next

Day Air and UPS 2nd Day Air packages. n Pickup service provided to scheduled pickup

account customers for air and international shipments if prearranged by Friday, Dec. 28. UPS On-Call Pickup service available to all customers.

tuesday, Jan. 1, 2013,new Year’s Day n No UPS pickup or delivery service.

(UPS Express Critical service is available for urgent packages. Call 1-800-714-8779 or visit upsexpresscritical.com.)

tear

alo

ng

perf

orat

ion

an

d sa

ve f

or f

utur

e re

fere

nce

.

j

References to “UPS air and international packages” in the schedule above include the following UPS ser-vice options: UPS Next Day Air® Early A.M.®, UPS Next Day Air®, UPS Next Day Air Saver®, UPS 2nd Day Air A.M.®, UPS 2nd Day Air®, UPS Worldwide Express Plus®, UPS Worldwide Express®, UPS Worldwide Saver® and UPS Worldwide Expedited.®

time-in-transit notes: On UPS holidays – Nov. 22, Dec. 25 and Jan. 1 – there is no movement of any pack-ages tendered to UPS. Also, Nov. 23, Dec. 24 and Dec. 31 are considered for the purpose of the UPS Service Guarantee as transit days for “UPS air and international packages” only.

[ holiday planning ]

Q312

© Copyright 2012 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. Reproduction 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 UPS.

SPECIAL OffEr (See page 10.) No purchase necessary. Void where prohibited. The UPS “Tell Us About Your Favorite Driver” Contest (#080) is sponsored by UPS and begins 7/7/12 and ends 8/31/12. Winners will be selected by 9/24/12. Winners will each receive a UPS Roadside Safety Kit and $100 gas gift card. Their corresponding drivers will each receive a Flip UltraHD™ 8 GB video camera. Approx. Retail Value of each prize is $150; Total ARV is $900. Open to authorized employees of valid UPS business account holders as of the start date of the promotion located in the 50 United States and D.C. For complete rules and more details, go to compass.ups.com/driverpromorules.

QMy business needs more flexibility for our pickups.

What are my options?

A One popular choice is UPS Smart Pickup®, which alerts a

UPS driver once you have processed a shipment on a UPS shipping system. Other options include a Daily Pickup, Day-Specific Pickup (for the same days every week) and UPS On-Call Pickup® service. To learn more, visit ups.com/pickup.

Have a question?Just Ask the Expert.

[ LOg On ]

Get tips for efficient shipping on

compass.ups.com

quICk AnSwErS tO yOur ShIPPIng quEStIOnS!

READl Learn three ways to “outship” your competition: compass.ups.com/outship. l Find inspiration for your company with these ingenious ideas: compass.ups.com/ingenious.

lEARnl Discover what makes online shoppers tick in a new customer experience study: compass.ups.com/ experience.

Winl Learn how you and your driver could win a prize from Compass. Just tell us how your driver helps your business: compass.ups.com/driver.

[ COmPASS OnLInE ]

Q Can i use UPS to ship a gun to my brother who lives in

another state?

A No. While UPS ships firearms for licensed manufacturers, collectors

and dealers, we do not ship firearms between individuals – regardless of their place of residence.

Further details about shipping firearms are provided in the UPS Service Terms and Conditions on ups.com/tariff.

WATCHl From stage diving to responsible touring, Pearl Jam guitarist Stone Gossard explains how the band smashes its carbon footprint with a little help from UPS: compass.ups.com/pearljam or scan the bar code with your smartphone.

CompassP.O. Box 5517New York, NY 10124-0671

go paperless!Switch to Compass Online and get stories, tips and advice by e-mail. Sign up for the e-mail version at ups.com/subscribe.

Our new Ask the Expert Forum features many of your most popular questions and our responses – from shipping alcohol to WorldShip® recommendations.Questions are:l Searchablel Ranked by popularity l Available by category type

Plus, you can share your advice and get ideas from other UPS customers about what worked for them. Start searching now at compass.ups.com/askthexpert.

SCAn iT

30%

Cert no. BV-COC-080115