INDUSTRY 4.0 The New Industrial Revolution

Naples, 28 February 2017

The role of logistics and the supply 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.

© 2014 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.

The Importance of Big Data and Industry 4.0 Only 4 businesses out of 10 know the Big Data

Source: Adecco Survey: “I Big Data e le Professioni del Futuro”.

3Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2014 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.

Purchasing Methods for Industrial GoodsDistributor websites are the top source for making purchases though a variety of methods are widely used

Directly from the industrial supplier's website

UE FR DE UK US CinaIT

52% 38% 58% 62%52% 66% 59%

It is the favourite purchasing method

Source: UPS Industrial Buying Dinamics Survey

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2014 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. 4

% of your customers expecting on-site after-sales

services

% of companies that have after-sales services as a top

differentiator

78%12%

Market Demand Market Offer

Source: Industrial Buying Dynamics 2015

Reality Check: The Field Services MarketThe imbalance between demand and offer is a opportunity

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2014 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. 5

The Solution: Warehouse consolidation. Express shipping services. Use of alternative delivery locations.

Time savings of 30 minutes per service order, achieved with the UPS Access PointTM network.

Reduced operating costs due to consolidation of 19 warehouses into a single, centralised distribution center.

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aAfter:A technicians simplified journey.

The Result:

Warehouse/ DC

Service location

Access Points

Making parts journey more efficientCase Study

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