The QuarterlyThe Quarterlyfor UPS Preferred for UPS Customers C mpass® compass.ups.com

VOL. 2, NO. 3 | Fall 2008

Ice cold comforts Dippin’ Dots CEO Curt Jones knows even tiny innovations can add up to something big. Read how UPS has helped this ice cream trailblazer and two other companies save money and improve customer service.

Plus: Peak shipping season is around the corner. Plan ahead with our tear-out holiday schedule.

Break the paper habit and get three times more UPS news, how-tos and customer stories delivered straight to your e-mail inbox. Sign up for Compass Online now at compass.ups.com/gogreen What’s New at UPS

Inside Compass ® Right now @ Compass Online

Finding a decent cheesesteak sandwich outside of Philadelphia used to be no Welcome to Compass! Here are some of the easy feat. But that was before Joe Kubicky, owner of Philly Food, discovered fresh insights, best practices and UPS updates how to ship his hometown’s signature dish anywhere in the United States, you’ll find in this issue. using UPS air services. His success story is one of more than 60 that you can read at Compass Online, right now.

Cover Story Plus: What can Brown do n Learn about the latest products, for you?® Learn how services and upgrades from UPS. 4 three customers saved n Get practical business tips and money and enhanced suggestions for running your customer service. company more efficiently. n Find Step by Step instructions for advanced functions in your Sitting at the Top shipping system. Entrepreneur Genevieve Thiers took baby-sitting n View videos and online demos. and pet-sitting to new levels with Sittercity.com. n Read the UPS Expert’s answers 6 Her innovative thinking won top honors in a UPS to customers’ questions. small business contest. Plus: At UPS Integrad,SM a new generation of UPS drivers is put to the test. Check it out at compass.ups.com.

Peak Planning Take control of the busiest shipping Promise makes perfect 7 season with UPS’s ® year-end operations The folks at The UPS Store know new packaging materials by one schedule. just how important your packages of their certified packing experts. are to you. Now, if an item packed In addition to shipping services, at The UPS Store is damaged or The UPS Store is a one-stop shop Departure Points lost, they will reimburse you. for all your document service- China is a fascinating mix of the old and the new – It’s called the Pack & Ship related needs: digital printing and and that’s true of its UPS ties, too. What’s new? An Promise. copying, document finishing and 8 intra-Asia air hub is coming to the Pearl River Delta. What’s old? An army of warriors made of terra-cotta The offer is available at all custom printing services. And be before 200 B.C. has arrived in America. participating locations of The UPS sure to visit in October for The UPS Store and covers any item packed with Store’s document services sale.

Get information faster, online For more information and to find a location of The UPS Store near you, visit theupsstore.com Visit Compass Online at compass.ups.com for exclusive news, best practices and success stories. Find the latest product information and new ways to ship smarter with UPS demos, videos and pod- casts. You can even download a PDF of the current print issue!

And if access 24/7 to all this information appeals to you, then why not make a permanent switch to Compass Online? Simply visit compass.ups.com/ gogreen. You’ll need the code that appears above your name on the back of this issue of Compass.

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2 Compass Fall 2008 LTL guarantee includes Canada

The UPS Freight® on-time performance available to less-than-truckload (LTL) guarantee has been expanded to cover customers on both sides of the border shipments between the United States who ship using the current UPS Freight and Canada. Now, customers can UPGF525 tariff. (Detailed terms about request a waiver of charges if such a the guarantee can be found in the tariff.) shipment does not arrive as scheduled. Since the 1940s, the United States Offered at no additional cost, and Canada have been each other’s the guarantee applies to shipments largest trading partners. UPS Freight’s Whatever speed you need moving within the 48 contiguous states, on-time performance can help you enter as well as those served by UPS Freight the Canadian market with confidence. UPS gives you both the speed and cost options you service centers in Calgary, Edmonton, need to handle any shipping situation. Whatever SM Halifax, Moncton, Montreal, Toronto, For more information, speed you need, UPS will get your package there Vancouver, Windsor and Winnipeg. It is visit upsfreight.com on time – guaranteed. Here are your six options:

n UPS Express Critical® for same-day service of urgent deliveries, using the best available flight, 24 hours a day, every day of the year. Call 1-800-714-8779. n UPS Early A.M.® for next business day delivery as early as 8 a.m. to major cities in the contiguous 48 states. Saturday service available by 9 a.m. n UPS Next Day Air® for next business day service coast to coast, typically by 10:30 a.m. (or noon, depending on destination). Overnight service to Hawaii, Alaska and Puerto Rico by end of day. Saturday service available. n UPS Next Day Air Saver® for next business day delivery by 3 p.m. (or 4:30 p.m., depending on destination) to business addresses in the 48 contigu- ous states. Residential deliveries by end of day. n UPS 2nd Day Air A.M.® for second business day delivery by 10:30 a.m. (or noon) to commercial addresses in the 48 contiguous states. n UPS 2nd Day Air® for second business day delivery. Economical, guaranteed delivery to every address Less-than-truckload (LTL) shipments now include an on-time guarantee within the throughout the United States and Puerto Rico by end 48 contiguous states and Canada. of day. Saturday service is an option for packages shipped on Thursdays. Taking charge of battery safety

Shipping batteries or battery-powered (Please refer to the Service Update at Department of Transportation’s devices requires special care because ups.com for details.) Hazardous Materials Regulations. many batteries contain dangerous Taking the following steps before Batteries powered by lithium, such as chemicals or hazardous materials. Also, shipping can prevent short-circuiting: those in many household electronics, Read the UPS common AA or 9-volt batteries can n Cover the battery terminals with an can explode, though such occurrences guide to shipping short-circuit and overheat during insulating cap or tape, or remove the are rare. hazardous materials at shipping. Short circuits can lead to fires batteries and place them individually ups.com/hazmat in aircraft, vehicles or sorting facilities. in plastic bags. On Oct. 1, a significant change goes n Protect switches on power tools into effect for the “medium” category or high-intensity flashlights. of lithium ion batteries, when they Lithium batteries require special become fully regulated for air shipment. consideration under the federal

Fall 2008 Compass 3 Cover Story Saving money, serving customers These successful businesses have three things in common: They all improved efficiency, cut costs and enhanced service with help from UPS.

Dots on the spot some way to make this creamier company had to come up with a new by freezing it faster,’” Jones recalls. solution to get the smaller shipments Curt Jones loves to experiment. “Then I said, ‘Wait, there is a way.’” to their destinations, overnight, The microbiologist turned CEO of About three weeks later, Jones took at a constant 20 degrees below zero. a $40-million company that makes a pint of ice cream to the lab and, using In 2007, Dippin’ Dots began using pearl-sized beads of ice cream, Jones tiny glass pipettes, dripped some of it UPS’s dry ice shipping service – is always looking for innovations that into a vat of liquid nitrogen. and ended up saving a cool $50,000, will improve service and business. In “We made a few beads and according to Dominic Fontana, vice fact, Jones got the idea for his com- popped some in our mouths,” he president of operations. pany from an unlikely experiment. explains. “Of course, it was still 200 “UPS had a plan that worked like In the summer of 1987, Jones and [degrees] below zero so it burned, but clockwork, and our customers are a friend were sitting on the back steps once it warmed up it was real creamy ecstatic,” Fontana says. of his house cranking up a batch of and good.” homemade ice cream. Six months later, Jones left the field “I said to him, ‘I wish there was of microbiology to establish Dippin’ Million-dollar answers Dots (dippindots.com). The Paducah, Ky.-based company began selling Blue Cross & Blue Shield of Michigan beads of ice cream to theme parks (BCBSM) covers more than 4.7 million and ballparks, and the never-before- people across the Wolverine State and seen product was a hit. sends out more than 75 million pieces Four years ago, Jones had yet of mail annually. another idea: offer party packs of So it’s not surprising that the 30, 60 or 90 servings for home and insurer’s shipping operations – at office parties. Customers could order least before the company turned party packs online and have them to UPS – were stretched thin. delivered overnight. “We had a manual process in But there was one small challenge. place,” says Daniel P. Hackett, While the larger shipments travel in BCBSM’s manager of document distri-

what’s called a pallet reefer system, the bution services. “It was not standard (BOTTOM) STEWART SCOTT (TOP), SINNOTT JOSEPH PAGE: OPPOSITE TRUGLIA; SAVERIO PAGE: THIS PHOTOS,

Cool new features for dry ice shipping

Temperature-sensitive shipments are easier additional weight restrictions on dry than ever with UPS. UPS now accepts dry ice packages. (UPS accepts boxes up to Tiny beads of ice cream add ice domestic air shipments under more 150 pounds.) Best of all, some red tape up to big taste as Brandon flexible regulations (IATA and 49 CFR), disappears. When shipping dry ice, you Powers packs bags of banana which makes the process simpler, faster do not have to sign a UPS hazmat contract split-flavored Dippin’ Dots at the company’s Kentucky and sometimes less costly for you. or prepare a Shipper’s Declaration for production facility. Under IATA regulations, there are no Dangerous Goods.

For more information about shipments with dry ice, visit ups.com and search for key term “dry ice.”

4 Compass Fall 2008 Goldspeed.com founder Neil Kugelman says UPS Delivery Intercept saves money by Saving money, serving customers disrupting fraud.

across the organization. In many cases the mail for the postal service, and we didn’t even use the same courier. delivers it to a postal facility near It was much more complicated.” the destination. In 2007, Hackett and Senior “UPS absolutely simplifies the Analyst Yvette Hendricks asked UPS to process for us and makes it very easy create a plan to simplify their shipping. to use,” says Hackett of the alliance. UPS technology solutions con- vinced Hackett, says Ria Karnavas, address while a package is en route and a director of strategic accounts for Gold rush in reverse also helps Kugelman stop a thief – UPS. The solutions included UPS and bring a package right back to his CampusShip,® which allows desktop Neil Kugelman’s Goldspeed.com Lynbrook, N.Y.-based firm. shipping from multiple users within started selling diamond rings, emerald “Sometimes an order will go out, an organization; UPS Billing Data, bracelets and earrings online in 1998. and after it gets shipped but before it online billing and analysis; and His first order for a diamond ring is delivered, we determine there might UPS Mail Innovations,® a unique brought excitement – for a few hours. be credit card fraud, and UPS will collaboration between UPS and the When the shipping address didn’t bring it back to us,” says Kugelman. U.S. Postal Service. match the credit card, the customer’s That’s particularly important because “The collaborative effort of phone number didn’t work and an the merchant incurs the cost of credit sitting down and saying, ‘What are e-mail to the customer bounced back, card fraud, not the bank. your short-term goals, what are your Kugelman canceled the order, sensing “Delivery Intercept has proved to be long-term goals and how do we get it was fraudulent. He was right. invaluable,” says Kugelman. “Some of there?’ was crucial,” says Karnavas. “Fraud is a huge problem in the those saves were pretty large orders.” The move to UPS paid off. BCBSM online retail world,” Kugelman says. (bcbsm.com) saved $1 million “And it has worsened over time.” using Mail Innovations and about That’s one reason Kugelman $100,000 using CampusShip in one loves UPS Delivery Intercept,SM Delivery Intercept year. Customers are served better which, by his estimate, has helped adds new play because documents get to their his company save “into six figures” destinations faster, Hackett says. in the 1½ years it has been available. UPS Delivery InterceptSM has saved the day for With UPS Mail Innovations, Delivery Intercept, now accessible thousands of UPS customers by intercepting pack- UPS picks up packages of mail, delivers through UPS shipping systems and ages with incorrect addresses or – as in the case of them to one of several UPS processing Quantum View® Manage, allows Goldspeed – that are involved in credit card fraud. facilities nationwide, labels and sorts Goldspeed.com to change a delivery Now, the money-saving and problem-solving service is available in Quantum View® Manage. While customers are viewing their package status in Quantum View Manage, they can easily request that a package be held for pickup, redirected or returned – all before the package is delivered. “This is a natural combination of two great services,” says Mark Sauer, a marketing manager at UPS. “This makes intercepting a package very, very simple.” As always, shippers can still reroute a package with a phone call or through one of UPS’s shipping Yvette Hendricks and systems such as UPS WorldShip.® Dan Hackett of BCBSM worked with UPS’s Ria Karnavas (far right). For more information about Delivery Intercept, visit ups.com/deliveryintercept

Fall 2008 Compass 5 UPS Insider

Winning combo: Big idea, little kids

During her senior year at Boston College in 2001, Genevieve Thiers gazed out her dorm room window Read about other and pondered her future. She saw a out-of-the-box pregnant woman struggling to post thinkers and fliers seeking a baby sitter, and she savvy business ran outside to help. Genevieve Thiers people at knew that parents compass.ups.com “That’s how I got the idea,” says needed a better Thiers, founder and chief executive way to find sitters. officer of Sittercity.com, a web-based business that provides a database for nannies, baby sitters, tutors, elder care- work,” says Thiers, the oldest of seven and speaking to mothers’ groups. givers, pet sitters and house sitters to kids, who baby-sat her way through The strategy worked, and the business more than a half-million users nation- school by working for 30 families. went national in 2004. Sittercity.com wide. “I realized parents were desperate “Part of being an entrepreneur is is now based in Chicago, where Thiers to find child care, but I didn’t know knowing and not wavering.” runs the company with her husband, until that moment there was something That didn’t make it easy. Thiers Dan Ratner. I could do,” she says. begged her father (they agreed not To promote her business, Thiers Indeed, Thiers met a need for baby to tell Mom) for a loan to register sends out about 400 press kits twice

sitters and other caregivers and, in the Sittercity.com. She soon was armed a year, and she relies on UPS to make z (BOTTOM) at

process, created an award-winning busi- with a backpack full of sitter-soliciting it happen. “The first time we did it, I y K art ness with $3 million in revenue in 2007. fliers to post around Boston. Within six thought, ‘There’s no way we’re getting For such success and initiative, months, Sittercity.com had spread these boxes out of here,’” she says. “But Sittercity.com was cited by UPS as to New York and Cleveland. we came back from a meeting, and they an “Out-of-the-Box” small business. Thiers took on her own public were gone. It was the first time I’d seen

“I’ve always known the idea would relations, papering Boston with fliers UPS in action, and I was awed!” PHOTOS: JIM LUNING (TOP), M

played on rookies, but part of the the company’s more important tools at training that goes on at UPS Integrad.SM the 11,500-square-foot, movie-set-style The facility, which opened a year ago, facility. A trainee climbs into a harness is UPS’s answer to an industry challenge: slung from a nine-foot frame and begins how to train a new generation of drivers walking. Once she gets her bearings, a to succeed at a physically challenging job. trainer lets go a pail of soapy water. It’s This device helps drivers see the impact When researchers determined that new at this point – when the trainee’s body is of a proper exit. drivers weren’t prepared for the rigors flailing – that she is taught how to adjust of the position, the company spent four her body so that she lands safely. years – and $34 million – to develop a Thurmon Lockhart, director of the more vigorous approach. Locomotion Laboratory at Virginia Tech Innovative training At Integrad, trainees get to experi- and the person responsible for design- ence, hands-on, the demands of the ing the slip-and-fall simulator, says he is for a new generation position of driver service provider. With a impressed with the work UPS is doing. variety of training aids, they learn about “They’re forerunners,” Lockhart says. In a rather nondescript warehouse in efficiency and injury prevention – “Research to reality, I call it.” Landover, Md., the next wave of UPS skills that add up to cost-effectiveness To read Fortune magazine’s article on drivers is learning how not to fall. and better customer service. Integrad and UPS driver training, go to The lesson is not some odd trick The slip-and-fall simulator is one of pressroom.ups.com/inthenews

6 Compass fall 2008 Resources

Spread the word Want to share this schedule with your co-workers? You can access it online 2008 UPS year-end and forward it at compass.ups.com. Look holiday schedule in the Resource Center.

Thanksgiving and Christmas will be here before you know it. Many customers are already planning for the hectic year-end holiday season. UPS plans for this all year long. This “peak season” schedule will also be available online at compass.ups.com through December.

THANKSGIVING Christmas New Year’s

Tuesday, Nov. 25 Tuesday, Dec. 23 Tuesday, Dec. 30 n Normal pickup and delivery service for air, n Normal pickup and delivery service for air, n Normal pickup and delivery service for air, international and ground packages. UPS international and ground packages. Next international and ground packages. (Next 2nd Day Air® packages picked up today will Day Air packages picked up today will Day Air packages picked up today will be delivered on Friday, Nov. 28. arrive on Wednesday, Dec. 24. 2nd Day Air arrive on Wednesday, Dec. 31. 2nd Day Air packages picked up today will arrive on packages picked up today will be delivered Wednesday, Nov. 26 Friday, Dec. 26. on Friday, Jan. 2.) n Normal pickup and delivery service. UPS Next Day Air® packages picked up today Wednesday, Dec. 24, Wednesday, Dec. 31, will be delivered on Friday, Nov. 28. UPS Christmas Eve New Year’s Eve 2nd Day Air packages picked up today will n Normal delivery service for air, ground n Delivery of air and international be delivered on Monday, Dec. 1 (except and international packages. packages only. those processed and labeled for delivery n No UPS Ground pickup service today. n No UPS Ground pickups or deliveries today. on Saturday, Nov. 29). n Pickup service provided for air and n Pickup available for air and international Thursday, Nov. 27, international shipments if prearranged by shipments if prearranged by Tuesday, Thanksgiving Day Tuesday, Dec. 23, via UPS On-Call Pickup Dec. 30, or via UPS On-Call Pickup service service or at all UPS Drop Boxes. (Next and at all UPS Drop Boxes. (Next Day Air n No UPS pickup or delivery service. (UPS Day Air packages picked up today will be packages picked up today will be delivered Express Critical® service is available for delivered on Friday, Dec. 26. 2nd Day Air on Friday, Jan. 2.) urgent packages. Call 1-800-714-8779 packages picked up today will be delivered or visit upsexpresscritical.com.) on Monday, Dec. 29.) Thursday, Jan. 1, 2009, Friday, Nov. 28 New Year’s Day n Delivery of UPS air and international Thursday, Dec. 25, Christmas Day n No UPS pickup or delivery. (UPS Express ® packages only. n No UPS pickup or delivery. (UPS Express Critical service is available for urgent ® packages. Call 1-800-714-8779 or visit n No UPS Ground pickups or deliveries today. Critical service is available for urgent packages. Call 1-800-714-8779 or visit upsexpresscritical.com.) n Pickup service provided for air and upsexpresscritical.com.) international shipments if prearranged Friday, Jan. 2, 2009 by Wednesday, Nov. 26, via UPS On-Call Friday, Dec. 26 n Normal pickup and delivery service for air, Pickup® service or at all UPS Drop Boxes. n Normal pickup and delivery service for international and ground packages. Saturday, Nov. 29 air, international and ground packages. n Delivery of UPS Worldwide Express,® Next Day Air and 2nd Day Air packages pro- cessed and labeled for Saturday Delivery. n Pickup of air and international packages for regular Saturday pickup customers or via UPS On-Call Pickup service.

“UPS air and international packages” in the schedule above refer to the following UPS service options: UPS Next Day Air® Early A.M.,® UPS Next Day Air,® UPS Next Day Air Saver,® UPS 2nd Day Air A.M.,® UPS 2nd Day Air,® UPS Worldwide Express Plus,® UPS Worldwide Express,® UPS Worldwide SaverSM and UPS Worldwide Expedited.® Time-in-transit notes: On UPS holidays – Nov. 27, Dec. 25 and Jan. 1 – there is no movement of any packages tendered to UPS. Also, Nov. 28, Dec. 24 and Dec. 31 are transit days for “UPS air and international packages” only. The UPS Service Guarantee is in effect throughout the holiday season with the following exceptions: The delivery commitment time for all International Services and Air Services shipments to be delivered within the U.S. and Puerto Rico will be extended by 90 minutes on Nov. 28, on Dec. 18 through Dec. 26, and on Dec. 31. Refunds or credits will not be issued for UPS Ground and UPS Standard to Canada shipments picked up or scheduled to be delivered on Dec. 1 through Dec. 31; and for Air Services shipments, including UPS 3 Day Select ® shipments, picked up in the U.S. and Puerto Rico on Dec. 22 through

tear along perforation and save for future reference. for and save perforation along tear Dec. 24. For further details on the UPS Service Guarantee, visit ups.com for UPS Tariff/Terms and Conditions. j fall 2008 Compass 7 Departure Points

Intra-Asia hub to relocate Delivering feats of clay

UPS’s intra-Asia air hub will be moving from the A terra-cotta army of life-sized replicas of warriors Philippines to Shenzhen in China’s thriving Pearl River who fought for China’s first emperor, Qin Shi Huang, was Delta to reduce transit times across Asia. buried with the emperor in 210 B.C. Unearthed in the UPS will relocate the new hub to Shenzhen Airport, 1970s, a portion of the army now has come to the near Hong Kong, in 2010. This will slash at least a day off United States for a multi-city museum tour. shipment transit times for Asian customers while offering The exhibit was packed in 42 customized a new level of service to nearby manufacturing regions. crates and loaded onto a UPS 747-400 air In fact, almost 200 city pairs will see faster transit times. freighter, the newest in UPS’s fleet. UPS flew With both financial and manufacturing centers, the warriors to the Ontario, Calif., air hub. China’s Pearl River Delta district is viewed as a terrific They were then loaded onto three opportunity for foreign investments. It will be UPS’s UPS Freight® trucks for the trek to second air hub in China, with the Shanghai hub open- the Bowers Museum in Santa Ana. ing later this year. The UPS hubs will be conveniently The meticulously detailed figures located near China’s two biggest seaports. have sculpted faces, body armor and even soles on their shoes. After leaving For more information on business opportunities in the Pearl River Delta, visit Southern California, they will continue buyusa.gov/hongkong/en/pearlriverdelta.html their U.S. tour to Houston, Atlanta and Washington, D.C., and UPS will ensure See how UPS moved these priceless but fragile pieces at that these ancient treasures

compass.ups.com/warrior receive the care they deserve. DA-GANG WANG PHOTO:

Buy books for needy children at The UPS Store

The national network of The UPS Boxes Etc., Inc. (franchisor of The Store® and Mail Boxes Etc.® is serving UPS Store and Mail Boxes Etc. brands) as the exclusive sponsor of the Toys and The UPS Foundation donated for Tots Literacy Program. This new $225,000. Participating store locations initiative offers economically disad- will continue fundraising activities vantaged children in the United throughout the year. States direct access to books and other educational resources. To learn more about the program, To kick off the program, Mail visit theupsstore.com

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