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("UPS"), founded in 1907, is the world’s premier package delivery company and a leading provider of global supply chain management solutions.
−Removed: We offer a broad range of industry-leading products and services through our extensive presence in North America;
−Removed: the Indian sub-continent, Middle East and Africa (“ISMEA”);
−Removed: Asia Pacific and Latin America.
−Removed: Our services include transportation and delivery, distribution, contract logistics, ocean freight, air freight, customs brokerage and insurance.
+Added: We offer a broad range of industry-leading products and services through our extensive global presence.
+Added: Our services include transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage and insurance.
We operate one of the largest airlines and one of the largest fleets of alternative fuel vehicles under a global UPS brand.
−Removed: We deliver packages each business day for approximately 1.7 million shipping customers to 11.8 million delivery customers in over 220 countries and territories.
+Added: We deliver packages each business day for approximately 1.6 million shipping customers to 11.1 million delivery recipients in over 220 countries and territories.
In 2022, we delivered an average of 24.3 million packages per day, totaling 6.2 billion packages during the year.
Total revenue in 2022 was $100.3 billion.
−Removed: Our well-defined strategy focuses on growing in the parts of the market that value our end-to-end network, including business-to-business ("B2B"), healthcare, small- and medium-sized businesses ("SMBs") and large enterprise accounts.
−Removed: We are on a journey to execute our Customer First, People Led, Innovation Driven strategy as we transform our business.
−Removed: Customer First is about reducing the friction of doing business.
−Removed: We help our customers seize new opportunities, compete, and succeed by delivering the capabilities that they tell us matter the most:
+Added: Our well-defined strategy focuses on growing in the parts of our market that value our end-to-end network, including small- and medium-sized businesses ("SMBs"), healthcare, international and certain large enterprise accounts.
+Added: We are continuing on the journey to execute our Customer First, People Led, Innovation Driven strategy as we evolve our business to be better and bolder.
+Added: Customer First is about solving for the needs of our customers.
+Added: We strive to help our customers seize new opportunities, better compete and succeed by delivering the capabilities that they tell us matter the most:
speed and ease.
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We know successful outcomes are built from a strong culture, so we are striving to make UPS a great place to work.
−Removed: Through our transformation initiatives, we are creating fewer but more impactful jobs.
−Removed: We are also enhancing the employee value proposition to align with evolving market practices.
−Removed: Innovation Driven is designed to optimize the volume that flows through our network, to focus on increasing value share and driving business growth from higher-yielding opportunities in our target markets.
−Removed: We are using technology and automation to deliver sustainable improvements to our network.
−Removed: In our United States (" U.S.") Domestic Package segment, our aim is to improve revenue mix and lower our cost to serve.
−Removed: Within the International Package segment and Supply Chain Solutions businesses, we are focused on value share gains and growing operating profit.
+Added: We believe that when we take care of our people, they take care of our customers.
+Added: Innovation Driven is designed to optimize the volume that flows through our network to focus on increasing value share and to drive business growth from higher-yielding opportunities in our target markets.
+Added: We continue to leverage technology and automation to deliver improvements to our network and unlock value for our customers through innovation.
Competitive Strengths
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We are a global leader in developing technologies that help our customers enhance their shipping and logistics business processes to lower costs, improve service and increase efficiency.
−Removed: We offer a variety of online tools that enable our customers to integrate UPS functionality into their own websites, deepening our customer relationships.
−Removed: These tools allow customers to send, manage and track their shipments, and also to provide their customers with better information services.
−Removed: A Broad Portfolio of Services.
−Removed: Our portfolio of services helps customers choose their most appropriate delivery option.
+Added: We offer a variety of digital tools that enable our customers to integrate UPS functionality into their distribution channels, deepening our customer relationships.
+Added: These tools allow our customers to send, manage and track their shipments, and also provide their customers with value-added data.
+Added: Broad Portfolio of Services.
+Added: Our portfolio of services allows customers to choose their most appropriate delivery option.
Increasingly, our customers benefit from UPS business solutions that integrate our services beyond package delivery.
−Removed: For example, supply chain services – such as freight forwarding, truckload brokerage, customs brokerage, order fulfillment and returns management – help improve the efficiency of our customers’ entire supply chain management process.
+Added: For example, supply chain services – such as global freight forwarding, truckload brokerage, customs brokerage, order fulfillment and returns management – are designed to help improve the efficiency and resilience of our customers’ entire supply chain management process.
Customer Relationships.
We focus on building and maintaining long-term customer relationships.
−Removed: Providing value-added services beyond package delivery, and cross-selling small package and supply chain services across our customer base, are important retention tools and growth mechanisms for us.
+Added: Value-added services beyond package delivery, and connecting our small package, supply chain and digital services across our customer base, are important to our customer retention and growth.
Brand Equity.
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Distinctive Culture.
−Removed: We believe that the dedication of our employees comes in large part from our distinctive “employee-owner” culture.
−Removed: Our founders believed that employee stock ownership was a vital foundation for successful business, and the employee stock ownership tradition dates back to our first stock ownership program in 1927.
+Added: We believe that the dedication of our employees comes in large part from our purpose driven culture that fosters trust, appreciation and empowerment.
+Added: We value the contribution of all of our people, encouraging everyone to bring their unique perspective, background, talents and skills to work every day.
Our legacy of fairness and equity is the bedrock of our culture and of our relationships with those we serve.
Financial Strength.
−Removed: Our financial strength allows us to generate value for our shareowners by investing in technology, transportation equipment, facilities and employee development;
−Removed: pursuing strategic opportunities that facilitate our growth and maintaining a strong credit rating that gives us flexibility in running the business.
+Added: Our financial strength allows us to continue investing in digital technology, transportation equipment, facilities and employee development to generate value for shareholders.
+Added: We pursue strategic opportunities that facilitate our growth and seek to maintain a strong credit rating to give us flexibility in running the business.
Products and Services;
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These services are supported by numerous shipping, visibility and billing technologies.
−Removed: For example, our Digital Access Program makes it easier for SMBs to use our services by embedding our shipping solutions directly into leading e-commerce platforms.
−Removed: All services (air, ground, domestic, international, commercial and residential) are managed through a single, global smart logistics network.
−Removed: We combine all packages within our network, unless dictated by specific service commitments.
+Added: These include our Digital Access Program, which embeds our shipping solutions directly into leading e-commerce platforms, enabling us to more broadly reach SMB customers and e-commerce markets.
+Added: All of our services (air, ground, domestic, international, commercial and residential) are managed through a single, global smart logistics network.
+Added: We combine all packages within this single network, unless dictated by specific service commitments.
This enables us to efficiently pick up customers’ shipments for any services at a scheduled time each day.
−Removed: Our integrated network provides unique operational and capital efficiencies that have a lower environmental impact than single service network designs.
+Added: Our global smart logistics network provides unique operational and capital efficiencies that also have a lesser environmental impact than single service network designs.
We offer same-day pickup of air and ground packages seven days a week.
−Removed: Our global network offers approximately 188,000 entry points where customers can tender packages to us at locations and times convenient to them.
+Added: Our global smart logistics network offers approximately 197,000 entry points where customers can tender packages to us at locations and times convenient to them.
This includes UPS drivers who can accept packages, UPS drop boxes, UPS Access Point locations, The UPS Store locations, authorized shipping outlets and commercial counters, alliance locations and customer centers attached to UPS facilities.
−Removed: Our UPS Access Point network includes local small businesses and national retailers.
−Removed: This network allows consumers to ship or redirect packages to an alternate delivery location or to drop off pre-labeled packages, including returns.
−Removed: The UPS Access Point network includes more than 20,000 locations within the U.S.
−Removed: and 52,000 globally.
We offer a portfolio of returns services in more than 140 countries.
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These technologies help reduce costs and improve efficiency in our customers' reverse logistics processes.
−Removed: Our global air operations are based in Louisville, Kentucky, and are supported by air hubs across the United States and internationally.
+Added: Our global air operations hub is located in Louisville, Kentucky, and is supported by air hubs across the United States ("U.S.") and internationally.
We operate international air hubs in Germany, China, Hong Kong, Canada and Florida (for Latin America and the Caribbean).
−Removed: This network design enables cost-effective package processing in our most technology-enabled facilities, which allows us to use fewer, larger and more fuel-efficient aircraft.
+Added: This design enables cost-effective package processing using fewer, larger and more fuel-efficient aircraft.
Domestic Package
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• Our ground network enables customers to ship using our day-definite guaranteed ground service.
−Removed: We deliver more ground packages in the U.S.
−Removed: than any other carrier, with average daily package volume of more than 17 million, most within one to three business days.
+Added: We deliver more than 17 million ground packages per day, most within one to three business days.
• UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
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International Package
−Removed: International Package consists of our small package operations in Europe, Asia Pacific, Canada, Latin America and ISMEA.
−Removed: International high-growth markets are one of our identified growth opportunities.
+Added: International Package consists of our small package operations in Europe, Asia, the Indian sub-continent, the Middle East, Africa, Canada and Latin America.
+Added: International markets are one of our identified growth opportunities.
We offer a wide selection of guaranteed day- and time-definite international shipping services, including more guaranteed time-definite express options than any other carrier.
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Europe is our largest region outside of the U.S.
−Removed: and, in 2021, accounted for nearly half of our international package segment revenue.
−Removed: We continue to make major European infrastructure investments to meet growing demand for our services and to improve transit times across the region.
−Removed: Customers can reach more than 80% of Europe's population within two business days using UPS Standard.
−Removed: We serve more than 40 Asia Pacific countries and territories through more than two dozen alliances with local delivery companies that supplement our owned operations.
−Removed: The introduction of a direct flight from the U.S.
−Removed: to Dubai has improved time-in-transit to key destinations in ISMEA for shippers throughout the U.S., Canada and Latin America.
−Removed: In India, we are investing in our network to improve transit times and extend pickup times, allowing businesses to gain faster access to markets in Europe and the United States.
+Added: by both revenue and package volume.
+Added: We continue to make major European infrastructure investments to meet demand for our services and to improve transit times across the region.
+Added: We have recently expanded hubs and gateways in France, Germany and Italy to increase efficiency for cross-border ground shipments and provide capacity for future growth.
+Added: We serve more than 40 countries and territories in Asia through alliances with local delivery companies and our owned operations.
Supply Chain Solutions
−Removed: Supply Chain Solutions consists of our forwarding, truckload brokerage, logistics and distribution, Roadie, UPS Capital and other businesses.
+Added: Supply Chain Solutions consists of our forwarding, truckload brokerage, logistics and distribution and other businesses.
Supply chain complexity creates demand for a global service offering that incorporates transportation, distribution and international trade and brokerage services, with complementary financial and information services.
−Removed: Many companies see value in outsourcing non-core logistics activity.
+Added: Many companies see value in outsourcing certain logistics activity.
With increased competition and growth opportunities in new markets, businesses require flexible and responsive supply chains to support their strategies.
−Removed: We meet this demand by offering a broad array of supply chain services in more than 200 countries and territories.
−Removed: The divestiture of UPS Freight was completed on April 30, 2021.
−Removed: As a result of the divestiture, we renamed Supply Chain & Freight as Supply Chain Solutions.
−Removed: For additional information on the divestiture, see note 4 to the audited, consolidated financial statements.
+Added: We aim to meet this demand by offering a broad array of supply chain services in more than 200 countries and territories.
We are one of the largest U.S.
−Removed: domestic air freight carriers and among the top air freight forwarders globally.
−Removed: We offer a portfolio of guaranteed and non-guaranteed global air freight services.
+Added: domestic airfreight carriers and among the top airfreight forwarders globally.
+Added: We offer a portfolio of guaranteed and non-guaranteed global airfreight services.
Additionally, as one of the world’s leading non-vessel operating common carriers, we provide ocean freight full-container load, less-than-container load and multimodal transportation services between most major ports around the world.
+Added: We are among the world’s largest customs brokers, measured by both the number of shipments processed annually and by the number of dedicated brokerage employees worldwide.
+Added: In addition to customs clearance services, we provide product classification, trade management, duty drawback and consulting services.
Truckload Brokerage
−Removed: We provide truckload brokerage services in the U.S.
−Removed: and Europe through our Coyote-branded subsidiaries.
+Added: We provide truckload brokerage services in North America and Europe through our Coyote-branded subsidiaries.
Access to the UPS fleet, combined with a broad third-party carrier network, creates customized capacity solutions for all markets and customers.
−Removed: Coyote customers can also access UPS services such as air freight, customs brokerage and global freight forwarding.
+Added: Coyote customers can also access UPS services such as airfreight, customs brokerage and global freight forwarding.
Logistics & Distribution
−Removed: Our Logistics & Distribution business provides value-added fulfillment and transportation management services.
−Removed: We leverage a network of more than 1,000 facilities in over 120 countries to ensure products and parts are in the right place at the right time.
+Added: Our global logistics and distribution business provides value-added fulfillment and transportation management services.
+Added: We leverage a network of facilities in over 120 countries to seek to ensure products and parts are in the right place at the right time.
We operate both multi-client and dedicated facilities across our network, many of which are strategically located near UPS air and ground transportation hubs to support rapid delivery to consumer and business markets.
−Removed: Healthcare logistics is one of our targeted areas for growth.
−Removed: We offer world-class technology, deep expertise and the most sophisticated suite of services in the industry.
−Removed: With a strategic focus on serving the unique, priority-handling needs of healthcare and life sciences customers, we have increased our cold-chain logistics capabilities to support the rapid deployment of COVID-19 vaccines both in the U.S.
−Removed: and internationally and we have delivered over one billion doses of COVID-19 vaccines.
−Removed: Customs Brokerage
−Removed: We are among the world’s largest customs brokers, as measured by both the number of shipments processed annually and by the number of dedicated brokerage employees worldwide.
−Removed: In addition to customs clearance services, we provide product classification, trade management, duty drawback and consulting services.
−Removed: On October 1, 2021, we acquired Roadie, a technology platform that enables local same-day delivery with operations throughout the United States.
−Removed: The Roadie technology platform is purpose-built to connect merchants and consumers with contract drivers to enable efficient and scalable same-day local delivery services, including items that are not compatible with the UPS network.
−Removed: UPS Capital offers integrated supply chain insurance solutions for in-transit goods to both small and large businesses.
−Removed: UPS Capital also offers insured transportation of high value goods.
+Added: We continue to invest in the automation of our facilities to meet customer demand.
+Added: Healthcare logistics is one of our targeted growth areas.
+Added: We offer world-class technology, deep expertise and a highly sophisticated suite of services.
+Added: With a strategic focus on serving the unique, priority-handling needs of healthcare and life sciences customers, we continue to increase our cold-chain logistics capabilities both in the U.S.
+Added: and internationally.
+Added: During 2022, we acquired Bomi Group to accelerate our growth by expanding our international presence and increasing our cold chain capabilities in major European and Latin American markets.
+Added: With the addition of Bomi Group, our network provides customers access to specialized healthcare distribution space in more than 30 countries and territories.
+Added: Other Supply Chain Solutions businesses
+Added: Our other Supply Chain Solutions businesses provide a broad portfolio of services to meet customer needs.
+Added: Technology-driven solutions, such as our Roadie same-day delivery business, provide flexibility and visibility for our customers.
+Added: We also offer integrated supply chain and high-value shipment insurance solutions to both small and large businesses through UPS Capital.
+Added: We believe these services are important to meeting our customers' needs and deepening our customer relationships.
Human Capital
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employees are represented by unions, primarily those employees handling or transporting packages.
−Removed: In addition, approximately 3,100 of our pilots are represented by the Independent Pilots Association.
+Added: Many of these employees are employed under a national master agreement and various supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters which run through July 31, 2023.
+Added: In addition, approximately 3,400 of our pilots are represented by the Independent Pilots Association (“IPA”).
+Added: During 2022, we extended our contract with the IPA for an additional two years beginning at the end of the current contract on September 1, 2023.
We believe that UPS employees are among the most motivated, highest-performing people in the industry and provide us with a meaningful competitive advantage.
To assist with employee recruitment and retention, we continue to review the competitiveness of our employee value proposition, including benefits and pay, the range of continuous training, talent development and promotional opportunities.
−Removed: For additional information on the importance of our human capital efforts, see "Risk Factors - Business and Operating Risks - Failure to attract or retain qualified employees could materially adversely affect us".
+Added: For additional information on the importance of our human capital efforts, see "Risk Factors - Business and Operating Risks - Failure to attract or retain qualified employees could materially adversely affect us" and “Strikes, work stoppages or slowdowns by our employees could materially adversely affect us.”
Oversight and management
−Removed: We believe in creating an inclusive and equitable environment that represents a broad spectrum of backgrounds, cultures and stakeholders.
+Added: We believe in creating an inclusive and equitable environment that represents a broad spectrum of diverse backgrounds, cultures and stakeholders.
By leveraging diversity with respect to gender, age, ethnicity, skills and other factors, and creating inclusive environments, we believe we can improve organizational effectiveness, cultivate innovation and drive growth.
−Removed: Our Board of Directors and Board committees provide oversight on human capital matters through a variety of methods and processes.
−Removed: These include regular updates and discussion around human capital transformation efforts, technology initiatives impacting the workforce, health and safety matters, employee survey results related to culture and other matters, hiring and retention, employee demographics, labor relations and contract negotiations, compensation and benefits, succession planning and employee training initiatives.
+Added: Our Board of Directors, directly and through the Board’s Compensation and Human Capital Committee, is responsible for oversight of human capital matters.
+Added: Effective oversight is accomplished through a variety of methods and processes including regular updates and discussions around human capital transformation efforts, technology initiatives impacting the workforce, health and safety matters, employee survey results related to culture and other matters, hiring and retention, employee demographics, labor relations and contract negotiations, compensation and benefits, succession planning and employee training initiatives.
+Added: In addition, the Compensation and Human Capital Committee charter was recently expanded to include oversight of performance and talent management, diversity, equity and inclusion, work culture and employee development and retention.
We believe the Board’s oversight of these matters helps identify and mitigate exposure to labor and human capital management risks, and is part of the broader framework that guides how we attract, retain and develop a workforce that aligns with our values and strategies.
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This requires a thoughtful balance between the culture we have cultivated over the years and new approaches to lead our business into the future.
−Removed: We are investing in capabilities that will transform our business, including investments in employee opportunities to support growth.
−Removed: We provide training for management employees on professionalism and performance as well as unconscious bias and diversity and inclusion to ensure our actions match our values.
+Added: We are investing in capabilities that we believe will transform our business, including investments in employee opportunities to support growth.
+Added: We provide training for management employees on professionalism and performance, as well as unconscious bias and diversity and inclusion, to seek to ensure our actions align with our values.
Additional information on our human capital efforts is contained in our annual sustainability report, which describes our activities that support our commitment to acting responsibly and contributing to society.
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Employee health and safety
−Removed: We are committed to industry-leading employee health, safety and wellness programs across our growing workforce.
+Added: We seek to provide industry-leading employee health, safety and wellness programs across our growing workforce.
We develop a culture of health and safety by:
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Building and maintaining long-term customer relationships is a competitive strength of UPS.
−Removed: In 2021, we served 1.7 million shipping customers and more than 11.8 million delivery customers daily.
+Added: In 2022, we served 1.6 million shipping customers and more than 11.1 million delivery recipients daily.
For the year ended December 31, 2022, one customer, Amazon.com, Inc.
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In addition, participation in the CRAF program entitles us to bid for other U.S.
−Removed: Government opportunities including small package and air freight.
+Added: Government opportunities including small package and airfreight.
Ground Operations
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Environmental
−Removed: We are subject to federal, state and local environmental laws and regulations across all of our operations.
−Removed: These laws and regulations cover a variety of processes, including, but not limited to:
+Added: We are subject to U.S.
+Added: and international federal, state and local environmental laws and regulations across all of our operations.
+Added: These laws and regulations cover a variety of matters such as disclosures, operations and processes, including, but not limited to:
properly storing, handling and disposing of waste materials;
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Communications and Data Protection
−Removed: Because of our use of radio and other communication facilities in our operations, we are subject to the Federal Communications Act of 1934, as amended.
+Added: As we use radio and other communication facilities in our operations, we are subject to the Federal Communications Act of 1934, as amended.
In addition, the Federal Communications Commission regulates and licenses our activities pertaining to satellite communications.
+Added: We are also subject to similar regulation, such as the European Union General Data Protection Regulation, internationally.
There has recently been increased regulatory and enforcement focus on data protection in the U.S.
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We are subject to numerous federal, state and local laws and regulations governing employee health and safety, both in the U.S and in other countries.
−Removed: Compliance with changing laws and regulations from time to time, including those promulgated by the United States Occupational Safety and Health Administration, could result in materially increased operating costs and capital expenditures, and negatively impact our ability to attract and retain employees.
+Added: Compliance with changing laws and regulations from time to time, including those promulgated by the U.S.
+Added: Occupational Safety and Health Administration, could result in materially increased operating costs and capital expenditures, and negatively impact our ability to attract and retain employees.
For additional information on governmental regulations and their potential impact on us generally, see “Risk Factors – Regulatory and Legal Risks”.
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Our Corporate Governance Guidelines and the charters for our Audit, Compensation and Human Capital, Risk, and Nominating and Corporate Governance Committees are also available under the heading "ESG" on the Governance Documents page of our investor relations website.
−Removed: Our sustainability report, which describes our activities that support our commitment to acting responsibly and contributing to society, is available under the heading "Social Impact" at www.about.ups.com .
+Added: Our sustainability reporting, which describes our activities that support our commitment to acting responsibly and contributing to society, is available under the heading "Social Impact" at www.about.ups.com .
We provide the addresses to our websites solely for information.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.