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Parcel carriers transported 11 percent of the value of the U.S. Gross Domestic Product in 2000, with UPS alone handling 6 percent. But as the global economy moves from the information age to the age of the supply chain, the way commerce moves changes, too. Limited inventories and time-definite delivery cycles create more frequent and smaller shipments often on a global scale. This shift is ideal for expanding UPSs core business.
Todays UPS is more than a package delivery company, but packages remain the foundation of its business a foundation that continues to grow. In 2000, UPS domestic volume increased 4.7 percent, roughly 563,000 packages a day. In fact, 81 percent of UPSs revenue and 87 percent of its profitability were contributed by its core domestic delivery business.
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