United Parcel Service

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United Parcel Service

• Crisis Management

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United Parcel ServiceWorldwide 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

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United Parcel ServiceCrisis Management

• 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

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United Parcel ServiceCrisis Management

• 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

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United Parcel ServiceCrisis Management -
Transportation

• Contingency
• Short term
• Usually weather related
• Alternate Ops
• Long term
• Disaster situation

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United Parcel ServiceCrisis 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

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United Parcel ServiceCrisis Management -
Transportation

• Contingency
• Planning handled locally
• District implementation
• Support from Regions/Corporate
• Scope of situation will determine support
  requirements
• Return to normal operating plans

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United Parcel ServiceCrisis 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

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United Parcel ServiceCrisis Management -
Transportation

• Contingency Keys to Success
• Communication
• Our people
• Our customers
• Managing expectations
• Our people
• Our customers

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United Parcel ServiceCrisis 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

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United Parcel ServiceCrisis Management -
Transportation

• Alternate Ops
• Planning handled through Corporate
• Pre-determined plans
• Corporate/region team implementation
• Plan becomes the norm

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United Parcel ServiceCrisis 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

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United Parcel ServiceCrisis Management -
Transportation

• Alternate Ops Keys to Success
• Communication
• Our people
• Our customers
• Managing expectations
• Our people
• Our customers

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United Parcel ServiceCrisis 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

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United Parcel Service

• Thank you!