Gateway® long ago moved from the Iowa farmhouse in which it was founded -- and is now a Fortune 250 company with over 20,000 employees worldwide. But as Gateway expanded internationally, it needed to maintain its reputation as a trusted partner – featuring products tailored to the needs of each customer. Looking to another powerful brand, UPS, it found a partner of its own.

			Together, Gateway and UPS created a package distribution network that transcends the traditional pickup and delivery of packages. From customized delivery operations to innovative financial products, as Gateway’s brand entered every market in the world, UPS was there to help it grow.

			With its vast worldwide infrastructure, broad portfolio of shipment options, and supplemental services such as customs brokerage, UPS is Gateway’s primary carrier for shipments worldwide. In the United States, where UPS reaches every address, UPS reduced Gateway’s reliance on more costly air delivery services by creating a custom delivery network. Three primary distribution facilities supply computer systems to the network so 96 percent of the U.S. population can receive new computers and peripherals in two days via UPS ground delivery. UPS’s Global Reach But UPS delivers more than computer systems to customers’ homes. In fact, over 80 percent of the 13 million packages delivered by UPS every day are business-to-business. That’s why Gateway also chose UPS to handle the movement of parts and emergency inventory stock-outs to its production facilities worldwide. These shipments from the United States to facilities in Australia, Ireland, Japan, Malaysia, and Singapore contain everything from motherboards to monitors. Improving Cash Flow Making commerce work effectively takes more than moving packages from one point to another. Each of the three pillars of commerce – the movement of goods, information, and funds – must move in one seamless flow. Recognizing this, Gateway was the first to use a service offered by UPS Capital, a financial services subsidiary, called C.O.D. Direct DepositSM. Taking funds received from collect-on-delivery shipments and depositing them directly into Gateway’s account has improved cash flow on this significant amount of revenue.		GLOBAL DELIVERY OPTIONS As Gateway has grown into a global company, UPS has been by its side. UPS people, like Thangadurai Manickam, ensure that customers in Malaysia receive the highest level of service.

		GATEWAY DISTRIBUTION FACILITY UPS technology is present throughout the Gateway production process. UPS Maxi-Code allows high speed, automated sortation, while a UPS designed optimization model allows Gateway to balance production fluctuations at all facilities.		Virtual Solutions, Real Results In 1999, more than 200 Gateway Country retail outlets adopted UPS Internet Shipping. Eliminating handwritten pickup records, the move consolidates shipping information from each location, reducing paperwork, improving billing, and increasing the efficiency with which packages flow through the UPS system. As Gateway has blossomed into a premier brand globally, UPS has provided the wings, the wheels, and the Web sites supporting that growth. UPS CUSTOM GROUND NETWORK The creation of a custom ground network allows 96 percent of the U.S. population to receive their Gateway products in two days using UPS ground delivery.
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Special note regarding forward-looking statements. © 2000 United Parcel Service of America, Inc.