UPS Starts European Deployment Of Its Latest Wireless Technology
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FRANKFURT, Germany, June 22, 2004 – UPS (NYSE:UPS) today announced it will begin deploying wireless technologies, including Bluetooth and Wi-Fi, to package facilities and drivers in Europe to ensure customers continue to have the most up-to-the-minute tracking information available at all times.
The first part of the deployment will occur inside UPS sorting centers and hubs. It involves pager-sized Bluetooth scanners, worn on the middle finger, which send package tracking data to small Wi-Fi (802.11b) terminals worn on the waist by package sorters. The Wi-Fi devices then send the tracking data to UPS’s computer network, where it can be accessed by customers.
“Our ultimate aim is to treat each UPS customer as if it is the only UPS customer,” said Ken Lacy, UPS’s chief information officer. “The wireless technology UPS is deploying today is laying the groundwork for the company to develop better operational software applications, which will allow us to offer new customized solutions to our customers while reducing our operational costs.”
The new global scanning system is one of the freshest technologies in UPS’s worldwide operation. When the enterprise-wide deployment is completed in 2007, UPS will have streamlined and standardized more than 55,000 ring scanners in 118 countries; integrated a number of UPS scanning applications into one, improved information flow, and decreased the cost of ownership.
By eliminating the cables that connect the ring scanners to the wearable terminals, UPS expects a 30 percent reduction in equipment and repair costs, as well as a 35 percent reduction in downtime and a 35 percent reduction in the amount of spare equipment needed.
As part of the global deployment, UPS will install as many as 12,000 Wi-Fi access points in more than 2,000 facilities. The resulting Wi-Fi network is expected to be one of the largest in the world.
The deployment of the wireless scanning systems will be further boosted by the rollout of the newest hand-held computer to UPS’s delivery drivers. The DIAD IV (Delivery Information Acquisition Device), currently in field trials in the United States, is the first handheld computer to include wireless connectivity options for personal (Bluetooth), local (Wi-Fi) and wide-area networks (GPRS or CDMA). Other innovative features include:
- A Global Positioning System (GPS) capability that will give drivers more detailed directions to customer pick-up or delivery points.
- A color screen that accommodates color coding of messages to drivers and displays information in a more attractive fashion for customers.
- An acoustical radio modem to facilitate dial-up access if necessary.
- An optical modem to enable transmission within a UPS center.
UPS began pilot testing the Bluetooth ring scanner and Wi-Fi terminal application in Europe earlier this month in Munich, Germany. The company now is launching another pilot test in Hamburg. UPS anticipates deploying the application at 73 sites in Europe by the end of 2005 and also will start deploying the DIAD IV in Germany next year. The company anticipates having 10,000 DIAD IVs deployed in Europe in 2005 and more than 70,000 worldwide by the end of 2007.
UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at UPS.com.
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Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
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