Company Press Release
SOURCE: UPS
Electronic Commerce Changing the Way UPS Looks at Its Business
Senior VP Joe Pyne Says UPS Now Sees Itself as Key Component In Industries' Supply Chain
DALLAS, Sept. 8 /PRNewswire/ -- Tum-Yeto has jumped into electronic commerce with both feet on its skateboards this year. Skateboard aficionados now can view, order, pay for and track skateboards as they are shipped, all through the Web site of Tum-Yeto, a California-based skateboard manufacturer.
The results: Tum-Yeto is reducing costs through an electronic shipping system, and the company's international volume is positioned to grow at the speed of skateboards, said Joe Pyne, senior vice president of marketing for UPS, in a speech before the Transportation Club of Dallas today.
Companies such as Tum-Yeto, using UPS's on-line package tracking technology, have changed the way that UPS looks at its business, Pyne said.
In the past, UPS viewed itself as a pickup and delivery service with 1.5 million customers and more than $23 billion in annual revenues. With the rise of electronic commerce, UPS sees itself as a key component of nearly every industry's supply chain, with 1.5 million shippers and 6.5 million consignees, transporting 6 percent of the nation's gross domestic product (or $400 billion worth of goods) throughout the year, Pyne said.
Opportunities in e-commerce are tremendous, Pyne said. He quoted the Gartner Group as stating that ''by 1999, 70 percent of enterprises that fail to incorporate logistics applications and content into their Internet management strategies will fail to gain competitive differentiation.''
He quoted Forrester Research as saying that more than half of all U.S. companies will communicate with partners via extranets within two years, compared to one-third now. By the year 2000, according to Forrester, business-to-business commerce will reach $66 billion. Pyne said that the U.S. Department of Commerce has estimated that business-to-business electronic commerce will be a $300 billion industry by the year 2002.
The rise of e-commerce also is dramatically changing the document delivery industry, Pyne said. Every year, 17 billion documents are produced digitally in the U.S. Within two years, according to the Electronic Messaging Association, companies will convert nearly one-third of their digital documents to electronic messaging. Five billion documents will be delivered electronically by the year 2000, he said.
UPS has been first-to-market with a product for the new arena of secure, digitized package delivery, Pyne said. UPS's Document Exchange product provides secure delivery and authentication of electronic documents.
Over the last decade, UPS has invested $10 billion in information technology. Today, the company is spending $1 billion a year on IT to maintain its package-delivery industry leadership in technology, Pyne said.
UPS is the world's largest express carrier and largest package delivery company, offering an unmatched array of products and services. Headquartered in Atlanta, Ga., the company operates in more than 200 countries and territories and has been named by Fortune Magazine as the most admired company in the transportation industry for 15 consecutive years.
SOURCE: UPS |
