UPS was founded in the United States in 1907. Today, UPS is a multi-billion-dollar company, the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. Every day, UPS manages the flow of goods and information in more than 200 locations worldwide.
The PlutonLogistics portal had the privilege of talking with Jevgenija Salmane, ASC Managing Director for Europe East District UPS.
PL: Tell us more about UPS Serbia.
– UPS has been offering its services, including package and freight delivery, as well as logistics and distribution services, through its authorized service contractor Express Courier d.o.o since 1997. It has been active in the Serbian market since 1997. Express Courier d.o.o was founded in 1996. It has facilities in two locations. A third facility is currently under construction. Express Courier d.o.o. has 50 employees and dedicated partners, who have contributed to the company’s consecutive years of double-digit growth in Serbia.
PL: Are you satisfied with the business results in 2018? What are your projections for 2019?
– UPS was very happy with its performance in Europe in 2018. In 2018, we were able to grow our export volume in Europe more than 5% when compared to the previous year.
Europe is a key market for UPS and the company remains bullish on Europe. Businesses of all sizes are and will be looking to continue to trade internationally and they will need a reliable partner to help them to successfully reach their customers.
UPS is optimistic when it comes to Europe and our business prospects here. We are in an excellent position to help businesses of all sizes in countries across Europe navigate the complexities of global trade and achieve success in the global marketplace. In other words, we are in an excellent position to help our customers to reliably transport their valuable goods to the right destination, at the right time, in the right physical condition, and at the right price.
PL: Which companies do you mostly work with? In which industry do you see an opportunity for development?
– UPS has customers from a wide spectrum of industries. Customers choose UPS for its global shipping capabilities, its comprehensive service portfolio and renowned reliability, speed, and ease of use.
Megatrends – like e-commerce, new delivery models, tech innovations, urbanization, shifting trade lanes – are changing markets fundamentally, as well as everyday life. These trends are impacting where and how UPS must focus its future growth.
UPS has defined four strategic imperatives where we believe we’re well-positioned for profitable growth in the future:
- The continued expansion of high-growth international markets where we can efficiently connect domestic and export customers through our smart global logistics network. The global package market is on track to grow from $300 billion to $480 billion by 2022, with roughly two-thirds of that growth coming from outside the U.S.
- Expansion through both B2B and B2C e-commerce. Global e-commerce sales are projected to hit $3.3 trillion in 2019 and more than double that amount – $6.7 trillion – in 2025. While cross-border e-commerce is expected to grow 25% in both 2019 and 2020. We are in a unique position to link retailers and consumers through our smart global logistics network that balances speed and cost.
- Further penetration into the Healthcare and Life Sciences markets, given the increasing shift towards home healthcare, where our end-to-end supply chain solutions and trusted residential delivery network will provide new value for healthcare companies and consumers.
Enhancing services and value for small and medium-sized businesses, as we reposition our commercial and service strategies to help this growing economic segment in reducing logistics complexity and costs, and take advantage of UPS-offered technology platforms for growth.
PL: How do you implement global UPS standards in a local market?
– UPS runs a global interconnected transportation network that offers the same high-quality service levels throughout its network. Our partners in Serbia operate in the same way as our partners in other countries – we ensure UPS service standards are maintained through specific KPIs which local operations must strive for.
PL: Although online shopping is a big trend in the world, it still isn’t fully implemented in Serbia. With your huge experience, at a global level,in this field, what changes will the popularity of online shopping bring in relation to the transport and logistics in this market?
– E-commerce continues to radically reshape how B2C and B2B companies serve their customers. Demand remains strong for B2C delivery. We see great opportunities with B2B, both small-sized and medium-sized businesses, and cross-border shipping. While Serbia is late in its expansion into the e-commerce space, its social media and e-commerce culture has evolved in recent times. With the advancement of online payment options and tools, as well as a steadily rising GDP per capita, the impact of social media on the market will consequently increase, which in turn will have a positive effect on export volume growth.
UPS is the e-commerce provider of choice. We’re building innovative solutions and partnering with e-commerce leaders to serve small, medium, and large businesses around the world.
PL: Which new technologies do you utilize in business? By using these solutions, what do users of your services get?
– Technology powers virtually every service we offer and every operation we perform. Our technology initiatives are driven by our customers’ needs. UPS is a global leader in developing technology that helps our customers optimize their shipping and logistics business processes to lower costs, improve service, and increase efficiency. For example, we offer a variety of online service options that make it possible for our customers to integrate UPS functionality into their own businesses – not only to conveniently send, manage and track their shipments, but to provide better information services to their customers. Technology is also the foundation for process improvements within UPS which enhance productivity, improve reliability and efficiency, and reduce costs.
PL: Digitalization, AI and the internet of things are trending in the field of logistics and distribution. Does your company follow these trends?
– We live in an era where many aspects of the business are being transformed by cutting-edge technologies and innovative ways of thinking – such as 3D printing, big data, and crowd-sourcing. For many companies, these disruptive forces require new ways of doing business – new work models, new alliances, and in many instances, new logistics solutions.
UPS is well-positioned to benefit from the opportunities that arise today and in the years ahead. The strength, flexibility, and reach of our worldwide network serves as the backbone of the global economy, and these technologies will enable the global economy to continue to grow.
At UPS, we invest $1 billion a year in technology. As part of this investment, we have launched a new innovative technology in the US called ORION (On-Road Integrated Optimization and Navigation) that raises the bar on efficiency and customer service.
Using package-level detail and customized online map data, ORION creates the most efficient delivery route for drivers. The tool uses expansive fleet telematics and advanced algorithms to take route optimization to a whole new level. While this technology isn’t currently available in Europe, we’ve seen remarkable success in the U.S. and will think about expanding it to new markets.
PL: Migration of logistics employees is a trend. How you deal with this in your company? What are you doing to keep your staff?
– UPS currently has the staff that it needs in order to continue providing the high-level services which our customers expect from us. The company offers a competitive salary and benefits package to the employees, as well as training and growth opportunities. As a global company, employees can take advantage of opportunities to advance their careers in different parts of the world and gain experience in a wide variety of functions within the company. A number of senior executives, including our CEO and head of UPS International, began their careers as part-time package handlers. This shows the opportunities that are available to UPS employees.
Interview published in collaboration with Bojan Grk, Business Development Manager Express Courier d.o.o. ASC for UPS