Big Data Delivers Big Results

21 September , 2016

Nick CostidesVice President of Information Technology, UPS

2Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

6,689,502,913,449,135,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

3Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

4Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Big savings come from attention to detail.

1 km is worth over €25M*

1 minute is worth €13M*

1 minute of idle time is worth

€460K**Note: Figures are per driver per day across the US for a year* Small Package P/U and Delivery drivers** Small Package P/U and Delivery, Freight and Tractor / Trailer drivers

5Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Breakthrough ChangeUPS Data Infrastructur

e

CustomerAddress

Geography

(Map)

UPS Proprietar

yRegulator

y

GPS

Vehicle

Service

7Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Operations process visionuses UPS’ rich data infrastructure to:

• Analyse situation and forecast future demand

• Develop plans based on forecast• Execute the plans• Monitor, adjust, close the loop

8Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Big Data Drives Global

GDP!

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Delivery Forecasting and

PlanningEach package planned on the right vehicle for the right day

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

The Impact (so far)

135 million kilometers

driven reduced32 million liters of fuel

reduced

85,000 cubic tons of emissions reduced

95% reduction in preloader training time

Highest service levels

in history

First of their kind product offerings

>99.9% seatbelt usage 8 Billion fewer manual entries by drivers

Real World Results: E(nergy) + I(nformation) = < E

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Organizations hunger to move up the analytics hierarchy

70%DescriptiveWhat happened?

30%DiagnosticWhy did it happen?

16%Predictive

What will happen?

3%PrescriptiveWhat should we do?

Advancing Analytics

Analysis

Structured Hybrid Unstructured/Content

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

On-Road Integrated Optimization &

Navigation (ORION)

Driver’s RouteOptimizes a driver’s route using:

– Advanced mathematical models– Data from planning systems– Customized map data

Accounts for business rules, customer needs, and service commitments

Allows “what if” analysis and decision making

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.13

Approximate age of the earth (in seconds):145,065,600,000,000,000

Number of ways to deliver 120 stops:6,689,502,913,449,135,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, 000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, 000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, 000,000,000

14Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Competing in the new entrepreneurial economy

Don’t just embrace data…

Understand it

Always remain… Limitations lead to…

Innovation

Constructively dissatisfied

15Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

A powerful team can transform a business…

16Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

Expansion gives us the opportunity to exercise imagination, ingenuity, resourcefulness, initiative and leadership.

- Jim Casey, 1944

Thank you