Smart LogiSticS To Grow Your BuSineSS Compass.ups FaLL .

exporting beyond canada: four markets to considerSmart Logistics to grow your businesspage 6compass.ups.com FALL 2012Unlockhiddenvalue7 untappedopportunities foryour companyto add to thebottom line 4PlusTake our reader surveyand you could win! 2Learn what onlineshoppers really expect 10The 2012 UPS year-endholiday schedule 11

[ first stop ][ 3 REASONS TO ] Enrollin My UPSMy UPS, a customizable workspaceat ups.com , is your one-stop hub forshipping tools. You can access upto 17 modules featuring new andpopular functions, such as tracking,shipping, history and much more.With My UPS, you can:123Find tools you need.Shipping managers willlove the quick access toTracking and QuantumView Manage . Accountingdepartments will appreciate Billing at a Glance.Customize your view.Rearrange the modules bypositioning the functionsyou need at the top andhiding those you don’t use.Save time. Get shortcutsto your favorite shippingfunctions in the at-a-glancedashboard view.get startedAt ups.com, select the MyUPS tab. Log in with your userID and password, or select “RegisterNow” if you’re a new user. Find step-bystep directions on customizing My UPSat compass.ups.com/myups.[ UPS ticker ]2COMPASS F A L L 2 0 1 2[ NEW WORLDSHIP RELEASE ]Build brand awarenesswith every packageWhen UPS releases its latest version of WorldShip in January, you’ll be able tocustomize your UPS shippinglabels with your companylogo and promotional marketing messages. Here are threemore reasons to upgrade toWorldShip 2013:l You’ll have access to allUPS package, LTL freightand air freight servicelevels and 2013 rates.l You’ll be able to printshipment labels remotelyto network printers.l With UPS Paperless Invoice enhancements,you can upload your own trade documents for customs clearance.If you are currently using WorldShip 2012, you will be able to upgradeautomatically without installing from CDs. If you have an earlier version ofWorldShip, you can download WorldShip 2013 from ups.com/worldshipsupportor from the CD that will be distributed, beginning in January. For more information, visit ups.com/worldshipsupport.[ SURVEY SAYS ]Help us make Compassbetter – and win!We want to know what you thinkabout Compass magazine. Fill outour reader survey at Compass Onlineand you’ll be entered for a chance towin one of 10 Bose QuietComfort 3 Acoustic Noise Cancelling headphones! Plus, 100 respondents willreceive a UPS travel mug.Take the survey today at compass.ups.com/survey.8: UPS ranked No. 8 on the latest InformationWeek 500 list of the most innovative users of business technology, the highest amongcompanies. 59 million: Number of sheets of paper UPS saves by having drivers use the handheld delivery information acquisition

[ KEY INDICATOR ]Using advanced route-planningtechnology, UPS avoided drivingmillionmileswhich equates to saving8.4 milliongallons of fuel.[ first person ]Signed, sealed,delivered[ New from UPS ]Jeff McDaniel: john SchweikertA seamless U.S.-Mexicotrade solutionA growing number of U.S. manufacturers have operations inMexico. But the challenges of cross-border trade can quicklyturn a cost advantage into a costly problem. Moving product onboth sides of the border and clearing customs requires seamlessintegration. Multiple handoffs can compromise security andcompliance, risking delays and unnecessary fees at the border.UPS CrossBorder Connect bundles transportationnorth and south of the border with UPS’s brokeragecapabilities, providing an end-to-end solution forpalletized freight through eight major border crossingsfrom California to Texas.With UPS CrossBorder Connect, you have onereliable contact. And this service is less expensivethan air freight and faster than standard groundtransportation. In fact, transit times between mostMexican and U.S. cities are typically two to three days.When our patients sign up for ourservice, we need to get their signatureso we can bill Medicare. Even thoughthey want the service, they don’talways sign the form immediatelyand stick it back in the mail. We’dhave to follow up with a phonecall. With UPS Returns Exchange,the driver delivers the form andwaits for the signature. We usedto get 50 percent back, andnow we’re looking at a 78to 80 percentreturn rate.— Jeff McDaniel,marketing directorof Nashvillebased MedicalDirect Clublogistics and transportation companies. 99: UPS’s near-perfect score in the 2012 Carbon Disclosure Project’s “Carbon Disclosure Leadership Index” of S&Pdevice (DIAD), which is the equivalent of 5,187 trees per year. 1975: UPS became the first package delivery company to serve every address in the continental U.S.FA L L 2 0 1 2COMPASS3

Unl ckIn business operations,finding value can be anelusive thing. Even afteryou’ve addressed corechallenges such as pricing, payroll and marketing, there often is stillhidden value trappedinside your business. But it’slocked behind untapped technology, customer attrition and little,daily inefficiencies that let productivity seep away.You can unlock some of thatvalue by taking a closer look atyour logistics.Here are seven ways to identifysavings, improve customer serviceand discover hidden value in yourbusiness.4COMPASS F A L L 2 0 1 2No managerwants to haveemployees idle.By keeping a closeeye on incomingshipments withQuantum ViewManage , customers like C.F.Martin Co., a sixthgeneration, familyowned guitar makerin Nazareth, Pa., knowexactly which materialswill arrive when, so theycan staff appropriately.“Logistics is an integralpart of dovetailing theschedule and the craftsmanwith the raw materials,”CEO Chris Martin says. ups.com/qvmanage2. Createan easy-to-usereturnsprogramWhen your returns processis unnecessarily complicated or time-consuming,three things can happen:Your employees lose valuable time, your customerslose patience and thenyou lose customers. That’swhy it’s important to makeyour returns process – orC.F. MartinCo. plansfor busierdays usingQuantum ViewManage.MARTIN GUITARS: MITCH GORDON1. Get ahandle Onstaffing

The valuehidden inyour businessany reverse logistics – asconvenient as possible.When San Diego shoerepair company NuShoestopped requiring customers to request a specialshipment bag and insteadenabled them to print theirown UPS shipping labelonline to affix to any package, it saw savings in thetens of thousands of dollarsin just the first year. ups.com/returns3. Take Controlof incomingshipmentsSure, you need timelyshipments from your suppliers. But do you needeach shipment sent overnight? Probably not. Youcan take control of howsuppliers ship to you – andget the credit for the overallshipping volume – by asking your vendors to shipon your UPS account. It’sa simple step that can addup to significant savings.4. Keep pickupinterruptionsto a minimumEven if each interactionwith a carrier’s drivertakes only a few minutes,those minutes add upover weeks and months –especially during yourpeak shipping season.White Flower Farm President Lorraine Calder estimates that her Connecticutnursery saves at least 1,200 a year simply byrelying on UPS to handlepickups for all shipments –whether ground, air orinternational.5. StreamlinepackagingIdeal packaging uses theleast amount of materialto keep products safe during transit. UPS PackageDesign & Test Lab canhelp you find that perfectbalance point by testingyour current packagingand making suggestions forgreater efficiency.With help from thepackage lab, SeattleSutton’s Healthy Eating –an Illinois company thatprepares ready-to-eat mealsto meet specific dietaryrestrictions – found that itcould ship meals in smallercontainers without compromising food quality orsafety. And smaller boxescost less to ship.It’s right there: untapped opportunityfor your company to make moremoney. The key? These 7 strategiesthat save time, cut costs and keepcustomers happy.By Deborah GeeringTake our OnlineLogistics CheckUpWant to know where yourbusiness should get started?Take our five-question quiz atups.com/value.6. Make yoursystems ‘talk’When Todd and StevenMessineo realized that anoutdated order processingsystem was holding backBudget Golf, their onlinegolf supply store, they calledin the UPS experts. UPSrecommended a vendorpartner to integrate theirordering, inventory and shipping systems, and that madeall the difference.“We now move 10 timesthe amount of packageswith the same number ofpeople – with no increasein labor costs,” ToddMessineo says. Every littlecost-saver adds up. worldship.ups.com7. Turncustomersinto repeatcustomersHappy customers return totheir preferred businessesagain and again, and theyrefer new business, too.Keep your customerscoming back for more byenhancing service. Whenyou process a package,always request e-mail notifications. At no additionalcharge, your customer canreceive a Quantum ViewNotify message from UPSwith the tracking number and expected deliverydate. You can choose tohave UPS notify up to fivepeople when that packageis shipped, if there is anunexpected delay and whenit is delivered.In addition to improvingyour customers’ purchaseexperience, Quantum Viewnotification alerts alsocan dramatically reduceWISMO (“Where is myorder?”) calls, saving yourstaff time – and your company valuable resources. ups.com/qvnotifyFA L L 2 0 1 2COMPASS5

[ going global ]In today’sglobal economy,companies of all sizesare looking beyond ourneighbor to the north andeyeing markets abroadto boost revenue.By Charles SlackBeyondCanadaWith easy logistics across a shared border andsimilarities in culture, language and spendinghabits, the United States and Canada representthe largest two-country trading partnership inthe world. No wonder it’s considered the perfect first stepinto exporting for American companies.Yet there’s a much larger world of customers beyondNorth America. Emerging economies are developing millionsof newly affluent consumers. Meanwhile, trade to both developed and emerging countries has never been easier. All ofwhich means it’s not just feasible but also necessary for evensmall businesses to cast a more global net.“Companies that go beyond exporting to a single marketgrow 2.8 times faster than those that export just to one country,” says Joey Rosenberg, international marketing analystfor UPS. She says over the next 25 years, 1 billion middleclass consumers are expected to enter the global market,representing 14 trillion in spending capability. “If you’renot thinking about those potential customers, you’re missingout on an opportunity to position yourself for long-termgrowth,” she says.Here are four global markets to consider for your nextoverseas destination.Australia: No Language barrierWhile its remoteness and sparse populationof 22 million people spread across nearly6COMPASS F A L L 2 0 1 23 million square miles may seem like barriers for U.S.exporters, Australia also boasts a sophisticated, affluentpopulation of English-speaking consumers. “In a jam, thatperson can call you and discuss a problem in English,”says Justin Christopher, sales and marketing director forCalifornia-based Jenson USA, a high-end bicycle productsretailer. Plus, Australians share Americans’ enthusiasmfor sports and the outdoors – an excellent customer basefor Jenson’s products.Another advantage: “Shipments under 1,000 in valueare not subject to tax and duty,” making an exporter’s products that much more competitive, says John Cadogan, aUPS international account manager.In today’s world, though, even in remote locations“people care about the speed of delivery. It’s becomingincreasingly important,” Christopher says. To shrink thedistances between the U.S. and Australia, “UPS gives yousome good choices.” Christopher cites UPS WorldwideExpress , which guarantees delivery to most Australiancities in three business days.Export lesson: A common language between you andyour customer can ease your entry into a new country.