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Intermodal Transportation Curriculum for Secondary Education – Pilot Study
MODULE 5: Successful Handling of Intermodal Operations at UPS
WORKSHOP
October 22 & 23, 2012 - Trent Lott Center, University of Southern Mississippi
Prepared By:
Ms. Jennifer Steele, Manager, UPS Mr. Stuart McAvoy, Customer Solution, UPS
Logistics Keeps the World Moving
Intermodal Transportation
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Agenda
• Intermodal Evolution
• Package Services
• Innovative Technology
• Freight Services
• Shipment Consolidation
• Customs Brokerage
• Sustainability
• Region Profiles
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What is Wikipedia’s Definition of Intermodal Freight?
• Intermodal freight transport involves the transportation of freight in an
intermodal container or vehicle, using multiple modes of transportation (rail,
ship, and truck), without any handling of the freight itself when changing
modes. The method reduces cargo handling, and so improves security,
reduces damage and loss, and allows freight to be transported faster. Reduced
costs over road trucking is the key benefit for intracontinental use, as well as
reduced greenhouse gas emissions 1. This may be offset by reduced timings
for road transport over shorter distances.
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Wikipedia’s Definition of the Origin of Intermodal?
• Jack Purcell McLean (born “Jack”; but late in life he changed his given name to its historic traditional Scottish spelling) (September 27 1734 – September 27, 1735), he was born in Maxton, North Carolina, was an American entrepreneur, often — albeit inaccurately — called "the father of containerization" — inaccurate since the concept was developed more than 100 years previously on the railways of Britain (following even earlier attempts on the canals). In 1956, McLean developed the metal shipping container, which replaced the traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. He later founded Sea-Land Service, Inc., one of the pioneers in the intermodal cargo transport business.1 McLean was named "Man of the Century" by the International Maritime Hall of Fame. He and his sister, Clara McLean, and brother, Jim McLean, founded McLean Trucking Co.
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Supply Chain Evolution
SupplierManufacturer
DistributorRetailer/E-tailer
EndConsumer
Supplier Manufacturer Distributor RetailerEnd
Consumer
InformationGoods
Funds
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Global Sourcing / Distribution Model (1990’s)
O1990’s
NAFTA
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Global Sourcing / Distribution Model (2000 – 2008)
O2000-2008
Slow boat from China – causing large warehouses
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Global Sourcing / Distribution Model (2009 - 2012)
O2009-2012
JIT reintroduced – excess warehouse space / consumer demand down
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Map out Existing Network to Visually Understand
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Package• Express
• Deferred
• Day-Definite
Freight• Air
• Cargo
• Ocean
• Road
Contract Logistics• Warehousing
• Distribution
• Service Parts Logistics
• Supply Chain Management and Consulting
The new logistics model from UPS
Intermodal CapabilitiesWorld’s Largest Transportation Company
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The Most Powerful Forcein Business Today
• Business grows more global daily
• Old markets change, new markets appear
• Customers expect more — in less time, for less money
• How do businesses gain a competitive advantage?
• Logistics — the most powerful force in business today
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Expand Business Global Reach
• Large business or small, logistics helps businesses
reach
220 countries and territories
─ Access more markets, spur greater growth
• Large coverage with the world’s largest
transportation company
• World’s largest customs brokerage network optimizes
clearance
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Balance Speed with Cost
• When counting minutes or counting costs, logistics gives
more flexibility
─ Multiple transportation modes allow for multiple delivery
options
─ Shipments arrive at the right time at the right cost with
Intermodal Options
• Packages or pallets
• Import or export
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Streamline Daily Processes
• Driving greater efficiency, logistics opens up more
possibilities for international business
─ Innovative software and Web-based technologies
help businesses get more done with less, inside and outside
the office
• One system for shipping package and freight saves
time and money
• Easy access and distribution of critical data improves
visibility and compliance
• Enhanced reporting and quick delivery confirmations
simplify invoicing and speed cash flow
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Package Services
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A Package Service for Every Need
• UPS delivers more guaranteed packages on time
around the world than any other carrier
─ That’s logistics opening up more opportunities
for business worldwide
• Three time-definite express options to more
international locations than anyone
─ Balance budgets with deadlines to get the service
you and customers need
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Get More Done Faster
• When speed is a priority, UPS’s international time-definite express portfolio
offers the best options
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Business Starts Early Worldwide
• UPS delivers to more countries from the U.S.
by 9:00 a.m. and before noon than any major carrier
• Earlier deliveries provide a faster start to the day
for business
• Allows business to meet challenging deadlines
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Flexible Deadlines, Cost-Effective Deliveries
• Guaranteed choices for both overseas deliveries and within North America
when speed isn’t the top priority
SERVICES FEATURES
UPS Worldwide
Expedited®
Customs-cleared delivery within 2-5 business days
to and from 70 countries and territories
UPS Standard
Guaranteed ground delivery within 2-7 business
days to and from the U.S. with coverage of:
• Every Canadian province
• All of Mexico, and the industry’s only
U.S.-to-Mexico ground package service
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When Shipments are UrgentUPS Express Critical®
• UPS Express Critical gives a next-flight-out option
24/7/365 for shipping anytime, anywhere*
─ Secure solutions include bonded couriers, armored cars
and special packaging to control high-value shipments
─ Full, online visibility for tracking and delivery confirmation
for peace of mind
─ Specialized equipment available to handle a broad range
of requirements
─ Import/customs clearance services for expedited processing
* For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.
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Business Can Take Control of Imports
• Import Freight Collect
─ Billed with rates fixed in U.S. dollars*
─ Protects from currency fluctuations
─ Keeps import costs in check
• UPS Import Control®
─ Allows Business to take charge of the shipping process
with the most comprehensive import delivery solutions
─ Initiate shipments from another country
─ Complete paperwork “in house” to ensure compliance
─ Use option to remove commercial invoice prior
to third-party delivery so value of goods is not revealed
*Rates are fixed relative to currency fluctuations, but are subject to periodic review by UPS.
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Act as Importer and ExporterNon-Resident Importer (NRI) to Canada
• Act as both U.S. exporter and Canadian importer
of record
• Export to Canada without the expense of a physical
location
• Offer customers seamless service with an all-in-one
price
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Innovative Technology
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Advanced Technology Maximizes Daily Efficiency
• Logistics keeps business moving without leaving
your desk
• UPS software and Web-based solutions:
─ Expedite shipment processing
─ Enhance visibility
─ Improve compliance
─ Simplify billing and accounting
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Streamline the Shipping Room and Beyond
• Integrate UPS technology tools into business systems
and processes to better manage shipments —
inbound and outbound, package and freight
• Enhance productivity by better managing delivery
information in the shipping room and in departments
such as:
─ Customer Service
─ Finance and Accounting
─ Inventory and Production Management
─ Information Technology
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One System for Package and FreightUPS WorldShip®
• Use one technology platform to simplify shipping
across all international locations
• WorldShip software processes both package
and freight, saving time and money
• The single automated system makes it easier
to ship, track, train personnel and integrate
information with business systems
• Displays UPS published rates or customized rates
with a built-in calculator
• Supports 129 countries in 16 languages
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Reduce Holds Up to 56 PercentUPS Paperless® Invoice
• Helps reduce the chance of errors, improving compliance
to expedite customs clearance, while saving paper:
─ UPS Paperless Invoice, an industry first, transmits
commercial invoice data on package and air freight
shipments to customs offices around the globe
• Can reduce customs holds 56 percent, minimizing
costly delays and increasing timely deliveries
• Begins the customs clearance process earlier
• Cuts processing hours and paper waste
• Does not reveal commercial invoice and shipment
value to consignee
• Is available for package and freight in multiple
automated shipping systems
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Complete VisibilityQuantum View® Manage
• Complete visibility for both package and freight makes
business more productive – inbound and outbound:
─ Quantum View Manage provides up-to-date information
on all shipments via e-mail notification
• Imports view offers access to customs brokerage data
to facilitate clearance and compliance
• Monitor multiple shipments across multiple accounts
without tracking numbers
• Available worldwide in multiple languages
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Complete Visibility – Package/FreightFlex® Global View
• Complete visibility for both package and freight
makes business more productive:
─ Flex Global View provides an integrated view of
supply chain 24/7
• Event-management and visibility tool lets business
react faster to orders and inventory levels
• Proactive e-mail alerts notify business of events and
exceptions to meet customer needs quicker
• Standard and customized reports streamline
data analysis
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Simplify and Improve Compliance UPS TradeAbility®
• Gives business a competitive advantage with resources
that help facilitate compliance for fast clearance when
crossing borders:
─ UPS TradeAbility offers a suite of free information-
based services
• Access the latest regulations and forms to improve
compliance
• Review estimates of landed costs before shipments
leave dock to control expenses
• Stay current on the latest security requirements
to help eliminate surprises
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Reverse LogisticsUPS Returns®
• An industry first, UPS Returns expands reach with service
to 110 countries and territories:
─ Helps reduce costs and the hassle of processing international returns
─ Simplifies customer experience by providing return labels and commercial invoices
in outbound packages or by e-mail
─ Can coordinate return even when UPS wasn’t the original shipper
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A Comprehensive Portfolio of UPS Returns® Service Options
• UPS will help business accommodate the needs of all their customers,
making returns as easy as possible, even overseas
• Options vary based on origin and destination countries
UPS Returns Service Options
Print Return Label Business prints a label that is included on the
outbound shipment.
Electronic Return Label UPS e-mails the return label to the customer.
Print and Mail Return Label UPS prints and mails the return label
to the customer.
Web-based Label Business prints a Web-based label, which
enables their customer self-service.
3 UPS Pickup Attempts UPS makes three attempts to deliver return
label and pick up the package.
1 UPS Pickup Attempt UPS leaves the return label at the pickup location after one attempt.
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Freight Services
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Moving Freight Efficiently
• UPS offers a full range of freight options
from critical to routine freight services
─ As the world’s largest transportation company and with
one of the largest airlines, UPS’s global presence and
access to preferred carriers is dynamic
─ Benefit from cost alternatives and adaptability with
the speed of air freight and the economy of ocean
─ Logistics offers freight customers UPS reliability
and flexibility on a larger scale
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Delivering a Global Advantage
• A leader in international air freight forwarding
• Complete end-to-end solutions available, including
door-to-door delivery and customs brokerage
• Customers can combine package and freight services
for greater supply chain efficiency and cost-effectiveness
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Easily Meet Market and Customer Demands
• UPS offers day-definite and time-definite
International Air Freight delivery options
DESTINATIONSSERVICES
Transit days and times depend on destination
FEATURES
To Africa,
Asia Pacific,
Europe,
Latin America,
Middle East
UPS Express® Freight 1-3 business days
Guaranteed door-to-door
delivery to most major metro
areas worldwide; pickup,
delivery and routine customs
clearance included
UPS Air Freight Direct®
1-3 business days Airport-to-airport delivery
included; pickup, delivery
and customs clearance
optionalUPS Air Freight
Consolidated®
3-5 business days
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UPS Air Freight Service Options to and from Destinations WorldwideMultiple Options to Meet Many Demands
SERVICESTransit days and times depend on destination
FEATURES
UPS Express Critical®*Next flight out
Within North America and between major metro
areas worldwide, available 24/7/365
UPS Express® Freight1-3 business days
Guaranteed door-to-door delivery to most major
metro areas worldwide; pickup, delivery and
routine customs clearance included
UPS Air Freight Direct®
1-3 business days
Airport-to-airport delivery included with day-
specific scheduling; pickup, delivery and customs
clearance optional
UPS Air Freight Consolidated®
3-5 business days
Airport-to-airport delivery included with day-
specific scheduling; pickup, delivery and customs
clearance optional
* For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.
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Easily Meet Market and Customer Demands• UPS offers day-definite and time-definite
International Air Freight delivery options
DESTINATIONSSERVICES
Transit days and times depend on destination
FEATURES
To Canada,
Puerto Rico,
within the U.S.
UPS Next Day Air® Freight Noon or 5:00 p.m.
Guaranteed to most major
metro areas in U.S. 48, Canada
(excluding intra-Canada) and
Puerto Rico; non-guaranteed
service (NGS) to most areas
in U.S. 50, Canada and
Puerto Rico
UPS 2nd Day Air® Freight
Noon or 5:00 p.m.
UPS 3 Day Freight®
5:00 p.m.
Guaranteed and non-
guaranteed service (NGS)
within 3-4 business days
to most areas in U.S. 48,
Canada and Puerto Rico
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UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto RicoMultiple Options to Meet Many Demands
SERVICESTransit days and times depend on destination
FEATURES
UPS Express Critical®*Next flight out
Within North America and between major metro
areas worldwide, available 24/7/365
UPS Next Day Air® FreightNoon or 5:00 p.m.
Guaranteed to most major metro areas in U.S.
48, Canada and Puerto Rico
UPS Next Day Air® Freight NGS**Noon or 5:00 p.m.
Delivery to most areas in U.S. 50, Canada and
Puerto Rico
• For more information, please contact us via e-mail at [email protected], or call 1-800-714-8779 within the U.S. and Canada or 1-913-693-6205 from outside the U.S. and Canada. See Terms and Conditions for additional information, conditions and limitations.
**Non-Guaranteed Service
continued
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UPS Air Freight Service Options Within and Between the U.S., Canada and Puerto RicoMultiple Options to Meet Many Demands
SERVICESTransit days and times depend on destination
FEATURES
UPS 2nd Day Air® FreightNoon or 5:00 p.m.
Guaranteed to most major metro areas in U.S.
48, Canada and Puerto Rico
UPS 2nd Day Air® Freight NGS*Noon or 5:00 p.m.
Delivery to most areas in U.S. 50, Canada and
Puerto Rico
UPS 3 Day Freight®
5:00 p.m.
Guaranteed delivery within 3-4 days to most
areas in U.S. 48, Canada and Puerto Rico
UPS 3 Day Freight® NGS*5:00 p.m.
Delivery within 3-4 days to most areas in U.S. 48,
Canada and Puerto Rico
*Non-Guaranteed Service
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Single Source for Global Ocean Freight
• A leading Non-Vessel Operating Common Carrier
(NVOCC) and freight forwarder
• Offers more buying power and the flexibility
to choose based on timing, cargo size
and routing needs
• Handling more than 600,000 TEUs annually including:
─ Less-than-container loads
─ Full containers
─ Special equipment
─ Oversized cargo
• UPS Preferred LCL can increase speed to market
up to 40 percent while minimizing cost
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Shipment Consolidation
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Consolidate Shipments, Shorten Supply Chains
• Logistics has business covered end to end
• Streamline supply chain and customs clearance
whether shipping packages, freight or a combination
─ Individual shipments to same destination country
or European Union grouped as one shipment
─ UPS handles pickup, transportation, deconsolidation
and delivery
─ Reduce time to market and eliminate need for
distribution centers
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Consolidated Clearance of PackagesWorld Ease®
• Send packages to multiple recipients in same country
or the European Union
• Ship and clear customs as a single transaction
• Extends global reach without start-up costs and
international warehousing
• One shipment with one customs entry simplifies
processing and managing shipments
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World Ease® — Streamlines Package Supply Chain – True Intermodal
• Consolidates customs clearance to help cross borders with ease
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Consolidated Clearance of Freight and PackageUPS Trade Direct®
• Consolidates multiple package and freight shipments
to the same destination
• Clears as one shipment with one contact, one bill to pay
• Streamlines supply chain and customs clearance
• Reduces time to market, eliminates need for
distribution centers
• A choice of three services in three modes:
─ UPS Trade Direct® Cross Border – For North America
─ UPS Trade Direct® Ocean – From 70 ports worldwide
─ UPS Trade Direct® Air – For time-sensitive, high-value
air freight from select airports worldwide
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UPS Trade Direct® — Streamlines Freight and Package Supply Chain - Intermodal
• Serves as business rolling, floating and flying warehouse to get goods
to market efficiently
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Customs Brokerage
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Global Customs Broker
• The world’s largest customs broker
─ Over 75 years of experience, helps reduce delays
and red tape
─ Offices in more than 60 countries, provides vital
knowledge of local customs processes
• Customs Network includes transportation,
as well as trade professionals and integrated
technologies
• Routine clearance included in most international
package delivery rates
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Access International Support and Resources
• Added security — UPS was first major carrier
to become certified C-TPAT participant
• Added information — Easily access information
to facilitate global trade, often free of charge, with
UPS TradeAbility® and UPS TradeSense®
• Added guidance — Working relationship with U.S.
Commercial Service provides proven resource
and support conducting business worldwide
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Expand Exports to Grow Business Globally
• UPS’s partnership with the U.S. Commercial Service
enables business to:
─ Consult with a trade specialist
• Uncover new opportunities in international markets
• Develop export expansion strategy
─ Take advantage of resources in 107 U.S. cities
and 78 countries
• Trade counseling
• Market intelligence
• Business matchmaking
• Commercial diplomacy
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Sustainability
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Greening Your Shipping and Business Processes
• Logistics lets you grow green without sacrificing growth
─ UPS carbon neutral shipping option to conveniently offset
climate impact on a per-shipment or contract basis
─ UPS Smart Pickup® to schedule a pickup only when needed,
saving fuel, reducing equivalent carbon (CO2e) emissions
─ Eco Responsible Packaging Program to reduce the
possibility of damage and help ensure sustainable materials
─ UPS Express® Reusable Envelopes to reduce waste,
enabling two shipments using the same envelope
─ Alternative-fuel/technology fleet of more than 2,500
vehicles to reduce our emissions and yours
─ Analysis of driver behavior and package car mechanics
to reduce idling time and avoid unnecessary mileage,
saving more than 186,000 gallons of fuel in 2010
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Leading by Example
• UPS ranked first in 2011 FORTUNE “World’s Most
Admired” survey for the delivery industry, as well as
first in the industry in Social Responsibility
• Scored 99 out of 100 in the S&P 500 and Global 500
2011 Carbon Disclosure Leadership Indexes
• Scored 81 in the 2011 Dow Jones Sustainability
Index (DJSI) North America
• Scored highest in Climate Counts consumer shipping
category and 11th highest among all ranked companies
Sources:World’s Most Admired Companies. UPS. FORTUNE. March 21, 2011. Web. August 19, 2011 < http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/2071.html>. CDP S&P 500 Report 2011, PricewaterhouseCoopers, pgs. 22, 23; CDP Global 500 Report 2011, PricewaterhouseCoopers, pgs. 23, 24.
Company Benchmarking Scorecard, Corporate Sustainability Assessment 2011. United Parcel Service, Inc. SAM Research AG. <http://www.sam-group.com/int/sustainability-services/company-benchmarking-report.jsp>.Scorecard Sectors – Consumer Shipping. Climate Scores – Scorecard Overview.ClimateCounts.org. n.d. Web. December 7, 2011. <http://www.climatecounts.org/>.
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Region Profiles
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Asia Pacific Capabilities
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Canada Capabilities
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Europe Capabilities
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Latin America Capabilities
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Thank You