United Parcel Service

1. United Parcel Service Crisis Management

2. United Parcel ServiceWorldwide Facts • Founded: August 28, 1907, in Seattle, Wash., USA • World Headquarters: Atlanta, Ga., USA • World Wide Web Address: www.ups.com • Chairman & CEO: Scott Davis • 2009 Revenue: $45.3 billion • Employees: 408,000 Worldwide (340,000 U.S.; 68,000 International) • 2009 Revenue: $37.9 billion • 2009 Delivery Volume: 3.8 billion packages and documents (15.1 million per day) • Service Area: More than 200 countries and territories; Every address in North America and Europe • Operating Facilities: 1,801 • Delivery Fleet: 96,105 package cars, vans, tractors, motorcycles, including 2,060 alt-fuel vehicles • UPS Jet Aircraft Fleet: 214 in service (253 aircraft total; among Top 9 in the world) UPS Network Planning Group

3. United Parcel ServiceCrisis Management • Crisis Management Mission Statement • We seek to maintain a constant state of readiness should UPS become exposed to an unexpected act of a critical magnitude • We maintain a crisis management strategy model to assist us in the prevention, response and restoration of our business • We strive to protect the reputation and interests of UPS, Our People, Our Customers, Our Shareowners, and Our Communities • We will conduct ourselves responsibly, sincerely, honestly and with the utmost integrity to ensure the safety, security and well-being of all of our stakeholders UPS Network Planning Group

4. United Parcel ServiceCrisis Management • Crisis Management • Corporate team to address needs of company during crisis situations • Cross functional team to insure minimal disruption and visibility to our customers • Department heads or designee from each function • Designated members from function to provide detailed planning for all levels • Operations, Human Resources, Communications, etc. • The following slides will address the transportation portion of the Crisis Management structure at UPS UPS Network Planning Group

5. United Parcel ServiceCrisis Management - Transportation • Contingency • Short term • Usually weather related • Alternate Ops • Long term • Disaster situation UPS Network Planning Group

6. United Parcel ServiceCrisis Management - Transportation • Contingency • Short term operating disruption • Winter storms, hurricanes, etc • Diversion of volume • Alternate locations • Minimize service impact • Alternative modes of transportation • Delay movement into affected area • Rail vs Ground • Ground vs Air • Temporary, ad-hoc changes • Customer notification • Service impact UPS Network Planning Group

7. United Parcel ServiceCrisis Management - Transportation • Contingency • Planning handled locally • District implementation • Support from Regions/Corporate • Scope of situation will determine support requirements • Return to normal operating plans UPS Network Planning Group

8. United Parcel ServiceCrisis Management - Transportation • Contingency - Consequences • Staffing • During disruption (individuals affected) • Post disruption (catching up) • Cost • Transportation around affected area • Staffed operations with no work • Insufficient staffing when “catching up” • Service • Local delays during disruption are expected • Network delays due to disruption are not expected UPS Network Planning Group

9. United Parcel ServiceCrisis Management - Transportation • Contingency – Keys to Success • Communication • Our people • Our customers • Managing expectations • Our people • Our customers UPS Network Planning Group

10. United Parcel ServiceCrisis Management - Transportation • Alternate Ops • Long term operating disruption • Loss of facility (catastrophe, pandemic, etc) • Diversion of volume • Alternate locations • Minimize service impact • Alternative modes of transportation • New trains • Re-routing of ground feeds • Re-routing aircraft • Permanent, long-term changes • Transparent to customer • Service impact UPS Network Planning Group

11. United Parcel ServiceCrisis Management - Transportation • Alternate Ops • Planning handled through Corporate • Pre-determined plans • Corporate/region team implementation • Plan becomes the “norm” UPS Network Planning Group

12. United Parcel ServiceCrisis Management - Transportation • Alternate Ops - Consequences • Staffing • Available workers are not in area where recovery operations exist • Existing workers not available due to disaster (Pandemic) • Cost • Initial contingency operation until Alternate Op in place • Alternate Op typically a more expensive plan • Service • Initial contingency will cause temporary service issues • Cost vs maintaining existing service levels • Alternate Ops are planned at current service levels • Operating costs could be reduced with change of service UPS Network Planning Group

13. United Parcel ServiceCrisis Management - Transportation • Alternate Ops – Keys to Success • Communication • Our people • Our customers • Managing expectations • Our people • Our customers UPS Network Planning Group

14. United Parcel ServiceCrisis Management - Transportation • SUMMARY • Maintain good Contingency and Alternate Op plans • Update as necessary when operating conditions change • Make sure employees understand the plan • Role play scenarios to ensure actions are sound • Make sure everyone knows their role • Hope that you never have to use plans, but if you do, communicate clearly with the people and the customers UPS Network Planning Group

15. United Parcel Service Thank you!