Jerry Hempstead, principal of Hempstead Consulting, said that the biggest admission on the call by UPS was that the star its fourth quarter performance was its new Sure Post product offering, which is a contract-only service that combines the consistency and reliability of the UPS Ground network, from pickup through transferring to the Post Office, with the cost benefits of using the United States Postal Service (USPS) for final delivery.

“All the talk was of the extraordinary growth they saw in B2C and it’s obvious from the numbers that this segment can be wildly profitable when one uses that truck and driver that goes to every home six days a week operated by the Postal Service,” he said. “For the first nine months of the year UPS’s ground volume was down slightly year-over-year, but because of the volume surge in the fourth quarter it finished ahead of last year by 0.8 percent. Modest for sure but that’s still a lot of packages.”

via UPS reports 6 percent increase in Q4 2011 revenue – Article from Logistics Management.

San Diego, September 22, 2011

Retail Outlets Offering Affordable Direct Mail Program from Print to Distribution

The UPS Store ® (NYSE: UPS) and the U.S. Postal Service ® are working together to provide small businesses with a new, cost-effective direct mail program.

By identifying geographic areas by city, neighborhood or a specified distance from their businesses, the U.S. Postal Service’s Every Door Direct Mail-Retail (EDDM Retail or EDDM-R) service allows small businesses to advertise to every delivery address in their target markets without the need for a mailing list.

“When it comes to marketing, it is important for small businesses to make it local,” said Stuart Mathis, president of Mail Boxes Etc., Inc., franchisor of The UPS Store. “By working with the U.S. Postal Service, The UPS Store franchise network now provides one convenient destination for the small business community to effectively and efficiently communicate with their target audiences.”

The EDDM-R program allows small business customers to work with their local The UPS Store center to print and distribute high-quality direct marketing pieces to every address in a designated neighborhood.

“With the assistance of their local The UPS Store center, the customer does not have to worry about the process,” said Tom Bellino, co-owner of multiple The UPS Store franchises in Chicago, who recently completed a 20,000 direct mail piece for Simon’s Shine Shop. “We offer standard sizes, handle the bundling, completion of the documentation and coordination with the local post office.”

And to make print marketing even easier, through Oct. 10, small business owners can maximize their message with “3 FOR ALL,” a The UPS Store promotion giving customers 30 percent off the purchase of three eligible products, including printing on direct mail postcards. More information, including a list of eligible products, is located on The UPS Store Facebook page.

The UPS Store centers help with the logistics of running a small business, including mailboxes with a real street address, packing and shipping services and professional printing services such as: color and black-and white prints; binding; lamination; finishing, and folding. Customers can select from a variety of print products, including presentations, flyers and brochures, business cards, menus and more. Participating locations also offer online printing and wide-format printing.

For more information on The UPS Store products or services, or to find a location near you, please visit www.theupsstore.com/logistics.

The new service, unveiled at the Interlog 2011 Summer conference here, is particularly suited to shippers in the high-tech, healthcare and retail industries. UPS Returns Exchange makes the replacement of high value products, such as electronics, more efficient while enhancing the post-sales experience for end customers. The new service will be offered in multiple countries around the world and will be an industry-first in North America.

With the new service, a UPS driver delivers a replacement item while simultaneously retrieving the item marked for return such as a defective laptop computer. The driver assists the customer in packing the return item in the box used for the replacement, then it’s shipped back to the original company. UPS tracking tools link the replacement and return shipments, providing end-to-end visibility of the entire transaction, and customers receive a pre-alert the day before delivery.

“This innovative service brings our expertise in shipping and reverse logistics straight to the customer’s door, giving them the advantages of speed and convenience,” said Geoff Light, vice president of new product development. “UPS Returns Exchange enables a company to increase customer satisfaction by providing rapid replacement of an important item while improving the company’s bottom line.”

In addition to improving the customer experience, UPS Returns Exchange reduces cost, cuts CO2 emissions and optimizes inventory management through improved visibility of the return and repair process. For example, those shippers who today send empty boxes to customers and then dispatch UPS a second time to retrieve an item no longer will have to take that first step, eliminating one delivery and saving fuel and cutting emissions. Also, waste is reduced by reusing the replacement item’s packaging for the return shipment. Finally, by ensuring that the return item is properly packaged, UPS translates damage reduction into cost savings and also ensures responsible disposition of items beyond repair.

UPS Returns Exchange will be available to customers in the U.S., Canada, Europe, Mexico and Puerto Rico in October.

Davis also said that the USPS needs to “reduce services, reduce post offices”, to become “fiscally sound”.

Davis pointed to the USPS’s uniform pricing for letters and flats as the agency’s “big political challenge”: “For us to deliver every package around the world at the same price, it just wouldn’t work.”

What’s odd about Davis’s comment is that the USPS doesn’t “deliver every package around the world at the same price” any more than UPS does- priority and parcel post rates are based on distance, the same as UPS and FedEx. It’s only first class and standard letters and flats that get the flat nationwide rate- markets that UPS doesn’t compete in, and, contrary to conservative political dogma, has never shown any desire to compete in.

Update: I received a tweet pointing out that the USPS offers flat rate Priority boxes and envelopes good for shipping anywhere in the US. That’s true- but it has nothing to do with the Universal Service Obligation- it was a marketing decision. The USPS has no obligation to provide a flat rate Priority option, and could eliminate it tomorrow if it chose to. (It’s also worth noting that the USPS now offers “Regional” flat rate Priority boxes that are cheaper than the nationwide flat rate boxes- zone based pricing by another name.) The “political challenge” Davis refers to is strictly the USO requirement.

via Q&A with United Parcel Service boss Scott Davis, a Portland State University graduate | OregonLive.com.

On a reported basis, diluted earnings per share totaled $1.11, a 48% increase over the $0.75 reported for the same period last year. During the quarter, UPS recorded a net after-tax gain of $32 million related to the sale of certain non-core business units.

For the full year 2010, the company delivered 3.9 billion packages, an average of 15.6 million per day. Revenue increased 9.4% to $49.5 billion. Adjusted operating profit soared 47% to $5.8 billion with the International and Supply Chain & Freight segments achieving record-setting levels, generating $1.9 billion and $577 million, respectively. On a reported basis, operating profit for the year was $5.9 billion, up 55%. Adjusted diluted earnings per share were $3.56, up 54%, and $3.48 on a reported basis, up 63%.

"UPS again demonstrated exceptional earnings growth by leveraging the strength of its network to provide solutions for customers," said Scott Davis, UPS chairman and CEO. "I’m encouraged by the opportunities we see in 2011 as UPS continues to expand into emerging markets while demonstrating the power of the logistics capabilities we’ve built worldwide."

Based on expectations for 2011, UPS is providing annual guidance for diluted earnings per share to a range of $4.12-to-$4.35, an increase of 16-to-22% over 2010 adjusted results. This would exceed the peak earnings level recorded in 2007.

More: UPS 4th Quarter Earnings Surge 44 Percent, 2011 EPS Expected to Set All-Time High – UPS Pressroom.

Consumers who tender a shipment through any retail access location and do not already have a pre-printed shipping label attached will have to present a government-issued photo ID or they will not be allowed to use UPS services. The ID policy has been in place at UPS Customer Centers since 2005.

Valid forms of identification in the U.S. include a current state-issued driver’s license or Department of Motor Vehicles ID card, U.S. or foreign government-issued passport, U.S. Permanent Resident card, U.S. military identification or a Native American Tribal photo identification card. Qualifying documentation may vary by country at international retail locations.

“Since retail centers experience a significant increase in business from occasional shippers during the busy holidays, this enhancement adds a prudent step in our multi-layered approach to security,” said Dale Hayes, UPS vice president of small business and retail marketing. “The safety and security of our customers, business partners and employees is our highest priority and UPS will continue to implement additional security precautions as necessary.”

UPS Mail Innovations handles the pick-up, processing and sorting of its customers’ outbound mail pieces weighing less than one pound and applies postage before delivering the pieces to the U.S. Postal Service for final delivery. With the opening of the new facility in Tolleson, Ariz., UPS Mail Innovations now processes mail at 16 locations in the United States.

The Arizona facility is processing approximately 20,000 mail pieces each day for distribution to others parts of the country and also delivering about 28,000 already-processed mail pieces each day to nearby Postal Service facilities for final delivery. Customers include companies in the retail and pharmaceutical industries, among others.

“UPS Mail Innovations serves customers that have opted to outsource their mail operations, saving them time and money,” said David Larkin, regional manager for UPS Mail Innovations. “Opening this facility in Arizona enables us to offer customers in the region more efficient and effective service than ever before.”

The opening of the facility is the third major recent investment by UPS in UPS Mail Innovations. In October 2009, the company added a new parcel sorter to its facility near Logan Township, N.J., allowing for more complete and speedier processing of under-a-pound parcels. Later this month, the company will double the size of its facility in Rancho Cucamonga, Calif., and next year install a parcel sorter at that facility.

“We continue to invest smartly in UPS Mail Innovations because we recognize the critical role it plays in helping businesses operate and grow,” said John Walsh, vice president of business development, UPS Mail Innovations. “Business mail processing, when done right, is a vital part of effective logistics for any business.”

UPS Mail Innovations is a work-share partner with multiple postal authorities around the world. Helping companies more efficiently and effectively manage their outbound mail while pursuing maximum postage savings, UPS Mail Innovations is an important component of UPS’s expanding portfolio of package delivery, transportation and logistics services. For more information, visit upsmailinnovations.com.

On a reported basis, diluted earnings per share were $0.99, an 80% increase over the $0.55 in the same period last year. During the quarter, UPS recorded an after-tax benefit of $61 million on the sale of real estate.

"UPS once again exceeded expectations due to superior execution across all business units and our ability to provide solutions that create value for our customers," said Scott Davis, UPS chairman and CEO. "We continue to deliver significant earnings growth and margin expansion in the current economic environment. This is a true testament to what can be accomplished when you have excellent people, superior service and an unmatched global portfolio."

Based on the company’s performance, UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.48 to $3.54 per share, a 51%-to-53% increase over last year.

Full story: UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent – UPS Pressroom.

UPS began testing the service last year with a few retailers such as BuySeasons, the largest retailer of costumes and party supplies on the Internet. Because of the positive customer response, UPS now is making the returns service more broadly available.

“Our experience with UPS is enabling growth for our business and allowing us to provide a higher level of service to our customers,” said Terry Rowinski, vice president of operations for BuySeasons. “UPS Returns Flexible Access is an innovative solution and we are excited to be one of the first customers to implement the product into our business model.”

UPS Returns Flexible Access utilizes the Postal Service’s Parcel Return Service®, combined with UPS’s own drop-off locations and delivery network, to provide retailers’ customers with increased convenience when returning items. Customers of participating retailers receive special package labels that allow them to enter returns packages in more than 150 million postal access points -– including personal mailboxes -– for their postal carrier to pick up.

Consumers also can drop the package off at their local U.S. Post Office,™ in postal collection boxes or at traditional UPS drop-off locations including The UPS Store®, UPS drop boxes, UPS customer centers, third-party retailers (Office Depot, Staples, and Authorized Shipping Outlets) or hand it to a UPS driver. The combination of UPS and postal access channels creates the most extensive returns network available to consumers today.

After a returns package is transported to a Postal Service location for dispatch to UPS, a UPS driver picks it up and transports the package back to the retailer via the UPS ground network. This offers retailers an inbound view of returns packages, facilitating improved customer service and cost savings due to better inbound operations planning.

“This game-changing consumer-to-business returns service improves UPS’s returns portfolio, which is already the most extensive in the industry,” said Linda Shepherd West, new product development director at UPS. “Working with the U.S. Postal Service to process returns through more than 150 million access points provides retailers the added flexibility they need to enhance their customer’s overall experience.”

UPS Returns Flexible Access is just another example of the enhancements UPS is making to its market-leading returns portfolio. UPS Returns services feature better time-in-transit than traditional returns consolidators. In addition, most UPS Returns services are available internationally, simplifying the returns process from 98 countries or territories around the globe. The UPS Developer Kit enables customers to integrate UPS Returns® into their own Web sites and enterprise applications.

To learn more about UPS Returns Flexible Access, visit www.ups.com/flexibleaccess.

Stock Markets Review has reported that “Monday, United Parcel Service Inc. (UPS) announced various appointments in its new and expanded districts. Earlier, the company had announced that it was going to reduce the number of U.S. Districts from 46 to 20.” [EdNote: And the Postal Service with its "more than it needs" district structure? What about the Postal Service? Well...it's still sittin' around just whistlin' Dixie. Besides, why worry? It is about to ask to have its customers pay.]

via PostCom: Postal News and Information from Around the World.