UPS Extends Green Approach to its Operations by Adopting HP Paperless Printing Solution

Atlanta, November 13, 2008

UPS (NYSE:UPS) today announced it is deploying a new combination scanner and paperless printing device from HP that will print millions of sorting labels directly on packages, helping the world's largest delivery company reduce operational costs while slashing its consumption of paper.

"Leveraging technology innovation is critical in today's tough, competitive economy," said Dave Barnes, senior vice president and CIO of UPS. "The new HP handheld device means increased efficiency and effectiveness at a lower cost, with less waste. This is a perfect example of how technology helps to drive business solutions at UPS."

UPS and HP collaborated for 18 months to develop a mobile, wireless printing/scanning solution called the HP Handheld sp400 All-in-One. UPS then built a custom business application to support the device.

"Building upon HP's experience in reliable, high-quality printing solutions, we've created offerings that improve our customers' individual workflow requirements," said Bruce Dahlgren, senior vice president, Worldwide Sales and Services, Imaging and Printing Group, HP. "Acting as a trusted advisor to UPS, we worked with them to develop a practical solution that improves processing time and reduces the rate of mislabeled packages to virtually zero."

The HP printing device will save UPS capital costs as well as costs for paper and ink and will increase the productivity and effectiveness of UPS package center employees. By eliminating paper labels, it will save 1,338 tons of paper each year once the imprinter is fully deployed and millions of dollars in annual operating costs.

UPS already has deployed HP Handheld sp400 All-in-One devices in 41 U.S. package centers and plans to expand the deployment to a total of 850 imprinters in 55 centers by the end of this year. The company expects to use the device to process 1.5 million packages per business day by mid-2009 and to increase that to 3.1 million by 2010.

How It Works

The wireless, wearable HP device is being used in conjunction with UPS's award-winning Package Flow Technology (PFT) system for route planning. PFT not only designs delivery routes that minimize left-hand turns, but also generates specific handling instructions for each package that tell loaders the exact position in which truck to place a package for delivery the next day.

As a package enters a UPS center for sorting, a UPS employee uses the HP device to scan the shipping label. The device obtains the proper sorting information from a UPS database via a WiFi network inside the facility, then prints those instructions directly onto the package using a specially formulated, fast-drying HP ink.

Employees can take the HP printing device to packages rather than having to bring packages to the device. It replaces and simplifies the current fixed solution, which includes a large thermal printer, PC, monitor and scanner.

In addition to replacing the current bulky set up, the HP solution also improves processing time and reduces the rate of mislabeled packages to virtually zero. Training employees to use the new device is fast and easy since the training "manual" is a single page.