Wednesday, June 22, 2005

UPS Tracking Progress on Business Sustainability Goals

ATLANTA, June 22, 2005 - UPS (NYSE:UPS) today reinforced its ongoing commitment to balancing economic, social and environmental objectives by releasing the company’s third annual Corporate Sustainability Report.


The report demonstrates UPS is moving forward on a number of important goals, including increasing fuel efficiency, lowering aircraft emissions and reducing employee injury rates. Additionally, this year’s report includes more global information than ever before.


“At UPS, we’re never satisfied with the status quo,” observed Mike Eskew, UPS’s chairman and CEO. “And with today’s increasingly interdependent world, sustainable business practices add up to smart business practices.”


UPS was the first company in its industry to issue a sustainability report and to publicize its goals for business practices that enhance communities and protect the environment. In doing so, UPS also had to develop several industry-specific metrics that appropriately measure business impacts.


The first Corporate Sustainability Report, Operating in Unison, was issued in 2003 using data based on year-end 2002 information. The vision, strategy and goals outlined in that initial document were set for 2007, UPS’s 100th anniversary. UPS is providing online annual updates until 2007, at which point a centennial sustainability report will be issued.


The 2004 Corporate Sustainability Report includes economic, social and environmental data.


Economic Sustainability
For the third consecutive year, UPS was included in the Dow Jones Sustainability Index, an index of companies that meet specific sustainability criteria.


In 2004, UPS was added to the FTSE4Good Index, a leading European index fund comprised of socially responsible companies.


Social Responsibility
UPS awarded more than US$540 million in contracts through its Supplier Diversity program.
Lost-time injuries per 200,000 hours were reduced by 29 percent.
The second annual UPS Global Volunteer Week was a huge success, with triple the number of volunteers and volunteer hours compared to 2003.


Environmental Stewardship
UPS continued to enhance its ground fleet with its “rolling laboratory” philosophy, deploying alternative-fuel vehicles to learn how new technologies can be adapted for use in the real world. Hydrogen fuel cell Sprinters and an electric vehicle were added to the fleet.


The roll-out of Package Flow Technology into the U.S. package operation continued to reduce miles traveled, fuel consumption and fuel emissions through improved route planning, vehicle loading and package delivery.


UPS Airlines, the world’s ninth largest airline, has begun a broad examination of additional steps that could reduce its fuel consumption.


Renewable solar energy provides 70 percent of the power source for the UPS Palm Springs, Calif. facility. The 100-kilowatt solar panel array exceeded expectations in 2004 by producing 4.9 percent more power than anticipated. Some 405,000 pounds of CO2 emissions have been saved since implementation in July 2003.

USPS: Premium Forwarding Service goes nationwide in August

NOT-FOR-SNOWBIRDS ONLY
Premium Forwarding Service goes nationwide in August
Premium Forwarding Service, an innovative idea created by postal employees for their “snowbird” customers, will be available to everyone, everywhere in August. Customers will have a new forwarding option that moves all of their mail to their temporary address.

“What has been available informally in only a small number of locations will now be offered for a very affordable price to anyone who moves temporarily,” said Chief Marketing Officer Anita Bizzotto.

Bizzoto said the product was priced to be easy and convenient with a flat fee of $10 to sign up and $10 a week for shipping and handling. Under the new service the Postal Service will use Priority Mail to box and reship mail once a week for periods of at least two weeks and up to one year.

“We have streamlined Premium Forwarding Service to keep it affordable and efficient for everyone, everywhere,” said Bizzotto.

USPS: Apple a day keeps the brown truck away

Apple a day keeps the brown truck away
Priority Mail Flat-Rate boxes win business

Apple a Day and Beyond, a Greenville, SC, nutritional product supplier, switched from a USPS competitor — thanks to convenient and cost-effective Priority Mail Flat-Rate boxes.

Customers Scott and Hugh St. Clair (left and center) show Sales Account Representative Mike Hill that Priority Mail Flat-Rate boxes are perfect for their shipping needs.

Eastern Area Sales Account Representative Mike Hill knew when they were approved for a two-year test that the boxes would be perfect for the company. He convinced owners Jeanne and Scott St. Clair to try the boxes — they were impressed and now ship 100 to 150 Priority Mail packages daily.

“The Priority Mail Flat-Rate box is a great door-opener for customers like Apple a Day who were using the competition,” said Hill.

“Flat-Rate boxes were developed as a quick, easy and convenient enhancement for shippers,” said Package Services Manager Jim Cochrane. “Sales has done a terrific job of acquiring new customers with this product.”

“We’re very happy with the cost savings,” said Scott St. Clair. And what’s it worth to keep the competition away? In this case, $100,000 in Priority Mail revenue.

Tuesday, June 21, 2005

USPS Statistics

From www.usps.com

We deliver to every household and business in the United States. Every American has access to our services and pays the same postage rate regardless of geographic location. We...

Deliver mail to over 142 million homes, businesses and post office boxes in every state, city, and town in the country; including Puerto Rico, Guam, the American Virgin Islands and American Samoa

Add 1.8 million new addresses each year to our delivery network

Serve over 7 million customers daily at nearly 38,000 post offices

Have annual operating revenue of $69 billion

Deliver more than 206 billion pieces of mail a year

Collect mail from over 280,000 points—including blue street mail boxes—across the country

Pay nearly $2 billion in employee salaries and benefits every two weeks

Employ more than 700,000 career employees

Have the world's largest Intranet to communicate with our employees

Provide alternative access for our customers to purchase stamps at more than 27,500 vending machines; nearly 25,000 commercial retail outlets such as supermarkets, convenience, drug and gift stores; nearly 19,000 banking and credit union automated teller machines, and 2,500 automated postal centers located across the country

Do not receive tax dollars from the federal government for operating expenses. We use the revenue from sales of postage-related products to pay these expenses

Delivering For You.
Innovation, performance and a focus on service contributed to a record year for the United States Postal Service in 2004.


Delivering Our Best
On-time delivery of overnight-committed First-Class Mail held at a record 95% for the year—and jumped to an incredible 96% in quarter three! And service in all measured categories reached record levels.* Customers told us they saw improvements in unmeasured service categories, as well.

Satisfying Customers
We delivered for our customers, and they noticed. Independently measured customer satisfaction scores for the fourth quarter reached a new height, with 94% of residential customers rating their experience with the Postal Service as excellent, very good or good.

Staying Productive
We achieved a record fifth straight year of positive total factor productivity (TFP). These gains have provided the equivalent of $6.1 billion in cost savings. TFP includes all factors of production and measures the growth in the ratio of resources we use—the inputs—to the products and services they produce—the outputs.

Mail volume increased by 5.1% above May 2004

MAY FINANCIAL RESULTS RELEASED
Mail volume increased by 5.1% above May 2004

The Postal Service reported a mail volume increase of 800 million pieces or 5.1% over May last year, generating a 4.7% increase in revenue for the month. Despite this, a net loss of $198 million was posted for the month, as expenses increased 6.7%. May this year had one more weekday with one less Saturday than May of last year. While the number of delivery days remained the same, weekdays generate more volume and revenue.

Year to date (YTD), covering the period of October 1, 2004 through May 31, 2005, the Postal Service has posted a net income of $1.8 billion. This is $1.4 billion over plan and approximately $1.1 billion under same period last year (SPLY).

Revenue has totaled $47.4 billion YTD. This is an increase of $1.1 billion over plan or 2.6%, and is $700 million over SPLY. While expenses are $221 million under budget YTD, they are $1.8 billion over SPLY.

Total YTD mail volume of 142.8 billion pieces is 3.0% over SPLY. Standard Mail YTD has increased by 6.1% and Priority Mail is up 4.2%. First-Class volume is up two-tenths of a percent.

This performance is consistent with our recent rate case filing. Full results are posted at Financial & Operating Statements on usps.com.

Monday, June 20, 2005

USPS.COM WINS WEB AWARD

USPS.COM WINS WEB AWARD. An independent organization has cited the Postal Service as having the most consumer-friendly website, naming usps.com “The 2005 Best of the Web — Government” winner. WiredKids.com and the WiredSafety Group also gave the Postal Inspection Service its “Wired Cops Award” for aiding in the successful recovery of a kidnapped child. “We are honored to be among those recognized for this important work to improve Internet safety and ease of use,” said Acting Consumer Advocate Mike Spates.

USPS: MIAMI PASSPORT FAIR DRAWS HUNDREDS.

MIAMI PASSPORT FAIR DRAWS HUNDREDS. Miami’s first Passport Fair was a big success. More than 300 passport customers applied for or renewed passports at Snapper Creek Post Office. “The Passport Fair was put together to meet customer demand,” said Miami Postmaster Jesus Galvez. “With new travel restrictions going into effect soon, customers were in need of passports and the fair provided a convenient way for them to apply for one in their own neighborhood.”

USPS Sets the Record Straight

HOT WIRED. Public Affairs and Communications VP Azeezaly Jaffer “Set the Record Straight” for Wired News. In an article “Your Identity, Open to All,” the magazine erroneously reported that when someone fills out a change-of-address card, USPS records the date of move and new address, and sells it to information brokers. Simply not true. Jaffer explained what USPS does and doesn’t do with change-of-address information and Wired News will run Jaffer’s response in an upcoming issue.

USPS: “Use the mail, it works”

“Use the mail, it works”
PMG addresses advertisers

Postmaster General Jack Potter told more than 400 advertising professionals in Troy, MI, that mail is the fastest growing traditional marketing medium and should be included in every marketing plan — because it works.

“Mail can be personalized, tailored to the needs and interests of small groups, even individuals, in contrast to ‘one-size-fits-all’ advertising,” Potter said at a meeting of the Adcraft Club of Detroit and the Direct Marketing Association of Detroit.

Potter said mail succeeds because of its segmentation capability, citing a USPS-commissioned study that found that consumers who receive catalogs in the mail view 22% more pages on retailers’ websites, and spend 16% more money there than those who don’t.

Mail is a bargain, Potter also emphasized. “A typical piece of presorted advertising mail costs 18.2 cents — and it goes directly into the household,” Potter said. “And that happens every day in millions of households nationwide.”