United Parcel Service Crisis Management United Parcel Service

United Parcel Service Crisis Management

United Parcel Service Worldwide Facts Founded: August 28, 1907, in Seattle, Wash. , USA World Headquarters: Atlanta, Ga. , USA World Wide Web Address: www. ups. com Chairman & CEO: Scott Davis 2009 Revenue: $45. 3 billion Employees: 408, 000 Worldwide (340, 000 U. S. ; 68, 000 International) 2009 Revenue: $37. 9 billion 2009 Delivery Volume: 3. 8 billion packages and documents (15. 1 million per day) Service Area: More than 200 countries and territories; Every address in North America and Europe Operating Facilities: 1, 801 Delivery Fleet: 96, 105 package cars, vans, tractors, motorcycles, including 2, 060 alt-fuel vehicles UPS Jet Aircraft Fleet: 214 in service (253 aircraft total; among Top 9 in the world) UPS Network Planning Group 2

United Parcel Service Crisis Management Mission Statement • We seek to maintain a constant state of readiness should UPS become exposed to an unexpected act of a critical magnitude • We maintain a crisis management strategy model to assist us in the prevention, response and restoration of our business • We strive to protect the reputation and interests of UPS, Our People, Our Customers, Our Shareowners, and Our Communities • We will conduct ourselves responsibly, sincerely, honestly and with the utmost integrity to ensure the safety, security and well-being of all of our stakeholders UPS Network Planning Group 3

United Parcel Service Crisis Management • Corporate team to address needs of company during crisis situations • Cross functional team to insure minimal disruption and visibility to our customers – Department heads or designee from each function – Designated members from function to provide detailed planning for all levels – Operations, Human Resources, Communications, etc. The following slides will address the transportation portion of the Crisis Management structure at UPS Network Planning Group 4

United Parcel Service Crisis Management - Transportation Contingency • Short term • Usually weather related Alternate Ops • Long term • Disaster situation UPS Network Planning Group 5

United Parcel Service Crisis Management - Transportation Contingency • Short term operating disruption – Winter storms, hurricanes, etc • Diversion of volume – Alternate locations – Minimize service impact • Alternative modes of transportation – Delay movement into affected area – Rail vs Ground – Ground vs Air – Temporary, ad-hoc changes • Customer notification – Service impact UPS Network Planning Group 6

United Parcel Service Crisis Management - Transportation Contingency • Planning handled locally • District implementation • Support from Regions/Corporate – Scope of situation will determine support requirements • Return to normal operating plans UPS Network Planning Group 7

United Parcel Service Crisis Management - Transportation Contingency - Consequences • Staffing – During disruption (individuals affected) – Post disruption (catching up) • Cost – Transportation around affected area – Staffed operations with no work – Insufficient staffing when “catching up” • Service – Local delays during disruption are expected – Network delays due to disruption are not expected UPS Network Planning Group 8

United Parcel Service Crisis Management - Transportation Contingency – Keys to Success • Communication – Our people – Our customers • Managing expectations – Our people – Our customers UPS Network Planning Group 9

United Parcel Service Crisis Management - Transportation Alternate Ops • Long term operating disruption – Loss of facility (catastrophe, pandemic, etc) • Diversion of volume – Alternate locations – Minimize service impact • Alternative modes of transportation – New trains – Re-routing of ground feeds – Re-routing aircraft – Permanent, long-term changes • Transparent to customer – Service impact UPS Network Planning Group 10

United Parcel Service Crisis Management - Transportation Alternate Ops • Planning handled through Corporate • Pre-determined plans • Corporate/region team implementation • Plan becomes the “norm” UPS Network Planning Group 11

United Parcel Service Crisis Management - Transportation Alternate Ops - Consequences • Staffing – Available workers are not in area where recovery operations exist – Existing workers not available due to disaster (Pandemic) • Cost – Initial contingency operation until Alternate Op in place – Alternate Op typically a more expensive plan • Service – Initial contingency will cause temporary service issues – Cost vs maintaining existing service levels – Alternate Ops are planned at current service levels – Operating costs could be reduced with change of service UPS Network Planning Group 12

United Parcel Service Crisis Management - Transportation Alternate Ops – Keys to Success • Communication – Our people – Our customers • Managing expectations – Our people – Our customers UPS Network Planning Group 13

United Parcel Service Crisis Management - Transportation SUMMARY • Maintain good Contingency and Alternate Op plans – Update as necessary when operating conditions change – Make sure employees understand the plan • Role play scenarios to ensure actions are sound – Make sure everyone knows their role • Hope that you never have to use plans, but if you do, communicate clearly with the people and the customers UPS Network Planning Group 14

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