UPS Canada

A PEEK INSIDE CANADA’S PREMIER PACKAGE COMPANY

UPS CANADA SUPPLY CHAIN

T H E U LT I M AT E JOURNEY

As trusted trendsetters in end-to-end package delivery solutions, we unwrap what makes UPS Canada stand out in a competitive market with its President, Stephanie Dexter Writer: Rachel Carr | Project Manager: Scarlett Burke

2 | North America Outlook Issue 22

I

n a global logistics industry that is expected to exceed $16 trillion by 2032, UPS’s iconic brown trucks have become a familiar sight on streets worldwide.

UPS’s Customer First, People Led, and Innovation Driven business strategy helps to move the world forward by delivering what matters across more than 200 countries and territories.

From its humble beginnings in 1907, UPS has grown to become the world’s largest package delivery company. Innovation has been central to the UPS fabric for more than a century, and today, it is foundational to the company’s business strategy.

In 1975, UPS made its first international expansion into Canada.

It is now an integrated provider of

air and ground pick-up and delivery services throughout the country, with Stephanie Dexter, its first female President, leading a team of about 13,000 employees across 67 facilities and seven air hubs.

UPS Canada offers a wide range of domestic and international shipping and logistics services, including freight forwarding, customs brokerage, supply chain solutions, North America Outlook Issue 22 | 3

UPS CANADA SUPPLY CHAIN

and healthcare logistics. Its advanced global logistics system provides ground, air, and ocean services, utilizing a ground fleet of over 3,000 vehicles.

It serves clients of all sizes in various industries, such as healthcare, manufacturing, retail, and automotive.

Its diverse client base includes large enterprises, big retailers, small and medium-sized businesses (SMBs), and micro-businesses selling on eBay, Shopify, and Amazon.

A RAPIDLY CHANGING CANADIAN COURIER INDUSTRY The courier industry in Canada has been experiencing rapid growth with urbanization, population growth, and the rise of e-commerce and online shopping.

The COVID-19 pandemic accelerated an already rising trend, putting even greater pressure on the logistics and courier industry

to offer fast and free deliveries.

However, UPS remained agile and resilient, challenging the status quo and reimagining how logistics can bolster businesses of all sizes during challenging times.

“Fluctuations in the economy, such as rising inflation and reduced purchasing power, can significantly affect the industry. Nevertheless, UPS Canada has proactively positioned itself through strategic investments, a diverse product portfolio, and a robust network to effectively navigate these turbulent times,” introduces Dexter.

“In a time when our economy is slowing, what keeps businesses competitive in today’s evolving environment are free trade agreements that strengthen economic integration and robust supply chains.

“With the ratification of the Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTPP) and CanadaUnited States-Mexico Agreement (CUSMA), and thanks to the Government of Canada, Canadian businesses are seeing major wins,” Dexter emphasizes.

Since these agreements were established, we’ve seen more opportunities for businesses to expand internationally, less red tape at the border, and more efficient customs procedures to keep trade flowing and packages moving across borders.

The upcoming scheduled joint review of CUSMA in 2026 offers an opportunity for the three trading partners to maximize business competitiveness across North America.

“This is an exciting time for transportation and logistics. Overall, I would say there is still much potential for growth and innovation in our sector. We are constantly evolving

and adapting to find new ways to improve for the future,” she notes.

Around 95,000 small businesses open in Canada each year, which all rely upon logistics, supply chain, mapping, and delivery and return solutions. Therefore, partners such as UPS are needed to help them get started, succeed, grow, and reach international markets.

“The market is ever-changing, and consumers have spoken – they want more choice, convenience, and speed. We also see e-commerce sales in Canada continue to grow, and meeting the weekend delivery expectations of customers has become an essential part of our retail business strategy,” Dexter observes.

UPS LEADS THE WAY In a busy and changing world, UPS Canada and international business operations have evolved to introduce new services to satisfy customer

“ W E A R E P R O U D O F O U R CO M M I T M E N T TO D I V E R S I T Y, E Q U A L I T Y, A N D I N C L U S I O N .

W E B E L I E V E T H AT B Y P R O V I D I N G E Q U A L O P P O R T U N I T I E S F O R A L L E M P LOY E E S , R E G A R D L E S S O F G E N D E R , W E C A N C R E AT E A MORE INCLUSIVE AND SUCCESSFUL WO R K P L AC E ” – S T E P H A N I E D E X T E R , P R E S I D E N T, U P S C A N A D A

expectations that were advanced by e-commerce.

In 2024, UPS in Canada introduced residential ground delivery on Saturdays in major Canadian cities through its UPS Standard service, which offers economical, day-to-day shipping.

Launched in the Greater Toronto Area, customers who normally receive their residential deliveries on a Monday will now receive them

on Saturday. As of March 2024, the service is available in Montréal, Laval, Calgary, and Greater Vancouver. Once fully implemented, the majority of Canadian addresses in metropolitan cities will be eligible to have packages delivered on Saturday.

“This service is an industry first in Canada; we are the first globally integrated national carrier in the country to offer Saturday residential ground delivery as a general service North America Outlook Issue 22 | 5

Building Relationships A.I. Unified Security, Structured Cabling and Electrical-integration Alive

Firstly, please introduce me to iAlive with an overview of your main products and services, locations, and client base?

Providing UPS, ELLIS DON, CINEPLEX, ArcelorMittal, Martinrea Automotive, distribution centers, manufacturing, and correctional infrastructure, we also white label our services for larger IT and security companies. Our pragmatic approach is to make buildings intelligent, intuitive, and Alive. iAlive is an integration company based in Toronto that serves Canada nationwide.

AI based security/alarm systems, access control, CCTV, facial recognition, AV systems, and network rack configurations.

Of course, we bring all these together under one roof, including the design and installation of copper and fiber optic cables for infrastructure. iAlive provides and adheres to UPSapproved and preferred product

manufacturers such as CommScope, which provides all network hardware, including branded fiber, copper cables, jacks, and patch panels. Our long-term relationships with various vendors benefit all of our clients with the latest technology solutions and services.

The operational benefit of a unified security operations platform is situational awareness – knowing what is happening and where, at any given moment, to notify operators immediately of potential security threats by combining innovative integrated solutions. iAlive includes nature’s organic principles in its business model - backed by millions of years of substantiated proof - and adapts it to suit an ever-evolving use of technology in our world. By mimicking a system that has brought our existence this far, we can continue to grow and evolve without depleting ourselves. This inorganic technology learns with us and caters to our

comforts while protecting our environment, sustainability, and pocketbooks. At iAlive, we carry life into the future.

We are incorporating GREEN technology and LEEDS-approved, environmentsensitive, low-emission footprint products for our solutions to improve quality of life through social responsibility. At the same time, we will be conscientious of safeguarding both our natural resources and our environmental heritage by integrating the “4Rs” - reduce, reuse, recycle, and recover – in our solutions.

Could you outline iAlive’s mission, values, and ethos that underlie your digital transformation strategy?

We aim to be recognized as a leader in intelligent and innovative networked physical security products, services, and solutions by delivering outstanding value and quality to our clients and earning their respect and loyalty. We also strive to be a company that

is a great place to work and to grow as a team and a family with long-term goals.

Our core values for the recognition we receive from our clients include: • Quality products and support for our clients and partners.

• AI-infused building self-awareness, wellbeing, and development of our teams.

• Conducting ourselves and our business practices with integrity and loyalty.

• AI integrated with innovation and cuttingedge information technology.

We strive to collaborate with you to provide custom and innovative solutions. iAlive was created with the belief that technology can break down barriers and improve users’ day-to-day lives. With over 36 years of experience in the PSIM industry, we formed iAlive in 2014. We’re always embracing and integrating new technologies to push boundaries to meet your physical security and communication infrastructure needs

and provide our clients with the tools to stay ahead in a complex, ever-changing world.

We firmly believe that you get back what you give to this universe. We try to be fair with our clients, and we focus on building relationships instead of trying to make a quick buck.

I understand that iAlive is a company that prides itself on being at the forefront of technology, improving continuously, and taking initiative.

Could you tell us more about this? iAlive turnkey solutions • AI unified security • Situational awareness and notification • AI face recognition, crowd detection, indoor outdoor people, and vehicle tracking • AI CCTV analytics for quick and accurate response • AI PSIM off-site alarm video verification with two-way audio

• • • • • • • •

AI CCTV guard tours ULC intrusion, fire, and medical alarm monitoring Cloud backup and redundant servers 24/7 online support and remote management Structure cabling and fibre Wireless PTP, PTMP, MESH, and last-mile connectivity One company, one phone number Consulting and design services

What makes iAlive stand out from the competition?

The power of AI and unified systems.

Unified solutions are our core development focus. It empowers advancements in how our clients embrace AI and new technologies for their physical security operations.

Unified systems provide all physical security activities, functions, and data accumulated

within the same system; you can harness data flow across your security activities. iAlive makes securing people, buildings, and assets more accessible whilst supporting operational efficiencies. iAlive’s approach for stitching multiple systems onto one platform.

Our vision is to eliminate the redundancy and duplication that come with having many different security solutions. Our clients wanted a seamless, unified system for each security product, meaning a lot of time, cost, and effort in maintenance and upgrades to each product individually. Because of our clients, we created a physical security platform that would enable multiple products by numerous manufacturers to be unified to work as one.

How unification is different from integration.

The core goal for unified security is a suite of products developed as one unit.

Different modules can be controlled on a seamless system according to changing environments. Integration is when you connect one system to another; it has its benefits, but upgrading and maintaining multiple systems isn’t one of them.

Our approach. iAlive provides secured operations and intelligent systems, and we are always looking at new technologies to make digital systems more innovative and informative to protect our clients, assets, people, and organizations from physical and cybersecurity threats. iAlive is committed to building secure and compliant solutions; our approach emphasizes risk identification and mitigation, transparent and open communications, and working with a network of trusted partners.

Our dedicated core team is experienced and highly skilled in the industry. Our team has become a family over the years.

We offer competitive pricing while maintaining the highest standards of quality.

We have the knowledge and experience to custom-fit the solution for small to enterprise-level clients. Most importantly, we are committed to looking out for clients and focusing on future requirements and expansions in a fast-changing technology environment.

Finally, could you tell us more about your relationship with UPS Canada and what role the company’s digital transformation capabilities play in this relationship?

We have worked closely with UPS Canada to provide various services and solutions.

The project included a complete network upgrade for the central HUB in Vaughan, replacing all Cat6A and fibre cables, including 195 Access Points throughout the 460,000 Square feet (sqft) warehouse.

During the holiday season 2023, we provided UPS Canada with temporary sites and expanded the Scanner capabilities at existing sites.

Other UPS Canada projects include new CCTV installation, sorting line status monitors, and complete audio-video media stations, alongside the supply and installation of cradles for backup internet.

We provide a bridge between UPS and UPSpreferred manufacturers of fibre, cabling, network infrastructure and we work with the UPS IT team to assist in any capacity to provide solutions for new projects, keeping everyone informed on any new technologies or products.

+1-877-858-0777 iAliveCorp.com

UPS CANADA SUPPLY CHAIN

offering. Canadian and US businesses have a great new way to create growth by serving customers with our Saturday residential delivery service.

“It is available to all customers of eligible origins without an extra charge or special contract,” explains Dexter.

The development is a gamechanger for businesses and consumers, as those who would otherwise receive their delivery on a Monday will now get it two days sooner. This means packages addressed to residential addresses and shipped within one or two days of transit from a designated Saturday delivery area will be eligible.

This is true for transborder packages as well, with select US transborder shipments into Canada

also eligible for Saturday delivery.

“We are excited to see the positive impact this service will have on our customers’ growth,” says Dexter.

It is an exciting time for UPS in Canada as the company is working on several projects to improve its customer service and enhance its operational efficiency and network in major cities across the country.

“In 2020, we opened Canada’s largest sorting and delivery facility.

Our flagship 850,000 square foot (sqft) facility in Caledon, Ontario, features advanced scanning and sortation technology that increases efficiency and reliability for our customers in one of the country’s fastest-growing provinces,” details Dexter.

THE UPS FOUNDATION Since 1951, the UPS Foundation’s mission and purpose has been to lead the organization’s global citizenship efforts and philanthropy, centered around four focus areas: • Health and humanitarian relief – Leveraging partnerships and innovative logistical expertise to deliver health and humanitarian solutions to underserved and impacted communities.

• Equity and economic empowerment – Investing in organizations that address systemic education barriers and create economic opportunities for underrepresented women, youth, and marginalized communities.

• Local community engagement – Empowering people to inspire and mobilize volunteers and organizations to deliver systemic solutions and positively impact their local communities.

• Planet protection – Fostering a greener and more sustainable world.

PHILANTHROPY IN FIGURES • 26 million volunteer recorded hours since 2011.

• 30+ disasters responded to globally.

• $69.4 million gifted in grants and sponsorships worldwide.

• $1 billion invested in alternative fuel & advanced technology.

• 31 million trees planted.

Veritably, The UPS Foundation invests in global communities with cash grants, in-kind support, and passionate volunteers. It has given more than $3 billion to communities worldwide.

10 | North America Outlook Issue 22

The fully automated Caledon facility sorts up to 35,000 packages per hour and houses a fleet of more than 240 cars, including 10 electric vehicles (EVs). Paired with the Caledon hub, UPS Canada opened its 187,000 sqft facility in Ajax, Ontario, which will be fully operational by the summer of 2025, with 140 package cars servicing the area.

Both facilities will provide additional processing and service capacity in the Greater Toronto Area.

“In addition to our expansion in Ontario, we are set to open another facility in Surrey, British Columbia (BC), in the summer of 2025. It will be a fully automated facility powered by state-of-the-art sorting and scanning technology,” reveals Dexter.

The 370,000 sqft facility will be capable of sorting 20,000 packages an hour and will have 240 local delivery vehicles.

“These investments and expansions are a testament to our company’s purpose of keeping the world moving forward by delivering what matters,” she states.

EXCEEDING EXPECTATIONS Outperforming and excelling require an exceptional team. When paired with significant investments to create seamless customer experiences and expand its network into high-growth areas like healthcare and innovative technology, UPS Canada customers take notice and the efforts are paying off.

“Our trusted Net Promoter Score – a metric that measures customer satisfaction – is improving at a faster pace than any of our key competitors for the most trusted brand in the industry in Canada,” voices Dexter.

What sets the company apart is a highly trained workforce that oils the wheels of a reliable integrated global network.

“Whether it is a local delivery or an international shipment, we have services that cater to businesses of all

sizes across every industry, including healthcare.

“UPS has been in the healthcare business for more than 20 years, and we’re doubling down on our capabilities to meet the evolving needs of healthcare companies. We work with our healthcare customers to make their operations more precise, productive, scalable, and smart,” highlights Dexter.

UPS Healthcare is a leading healthcare logistics company, which offers full end-to-end logistics support to customers around the world. Its globally connected network of healthcare-dedicated facilities, powered by state-of-the-art digital solutions, ensures time and temperature-sensitive shipments are delivered with the utmost care.

They also provide clinical trial logistics support and end-to-end lab logistics for kitting, distribution, and delivery, as well as temperaturesensitive storage and transportation worldwide.

UPS HEALTHCARE IN NUMBERS 199 healthcare distribution and transportation facilities 150,000+ healthcare customers 1,100+ cold chain ground vehicles in Europe and Latin America 10,000+ healthcare logistics professionals 420 MILLION global healthcare shipments 8.7 MILLION sqft controlled room temperature 200,000+ direct-to-patient shipments 11,000+ home healthcare visits completed 1.5 MILLION clinical trial shipments 300 quality assurance professionals

UPS CANADA SUPPLY CHAIN

When UPS Premier was launched in Canada, this enabled customers to have end-to-end visibility for critical packages such as insulin. The technology utilizes priority lanes throughout the UPS network, which is crucial to ensure patient-critical products are delivered where they need to be, at the right time and at the right temperature.

“Healthcare expands beyond our small package business to UPS Supply Chain Solutions in Canada and supports the delivery of complex healthcare through cold-chain and temperature-controlled deliveries,” she tells us.

When you look at the future of healthcare, it’s all about innovations in biologics, specialty pharmaceuticals, and personalized medicine. These products make up most of the new products in development and are driving significant demand for precision logistics. UPS has and can support treatments from clinical trials right to the patient.

“We’ve been investing to meet those needs for a long time, building out a ‘network within a network’ to ensure we provide the best quality, end-to-end service on the market. We are continuing to aggressively expand into some of the largest and quickestgrowing healthcare markets in the world,” she sets out.

When the COVID-19 pandemic first hit in 2020, it was no surprise that UPS had the network and capabilities to deliver vaccines throughout Canada.

The company proudly delivered all supplies of the leading vaccine manufacturer COVID-19 vaccine in the country.

UPS customers are reaping the benefits of strategic investments that help streamline operations and increase efficiency, resulting in an enhanced experience.

“We continue to improve the digital experience and deliver the solutions our customers expect. We have several new products that will 12 | North America Outlook Issue 22

help improve customer satisfaction,” Dexter divulges.

SUPERCHARGING DIGITAL TRANSFORMATION At UPS, customers are reaping the benefits through strategic investments that are helping to streamline operations and increase efficiency, resulting in an enhanced experience for anyone using the service.

Technology, in particular, is revolutionizing many industries, and the package delivery services sector is no exception.

“As an organization, we combine digital solutions with our global integrated network to create more value for our customers and new revenue opportunities for UPS,” Dexter imparts.

In 2022, UPS introduced the International Dispatch Optimization (IDO) technology, a game-changer

that serves as the foundation for future enhancements in package delivery.

It has deskilled sorting operations and driver navigation features. IDO offers new features for customers that we are currently testing, such as time of delivery windows and Follow My Delivery – which is near real-time visibility of where their package is on a map, taking their experience to the next level.

“In Canada, we have utilized radio frequency identification (RFID) and smart package labels to provide real-time visibility of packages in our facilities,” she details.

This proactive approach allows the operation teams to quickly identify and resolve any issues, improving accuracy and efficiency in their operations.

“Our next-generation brokerage services are another innovative

INTERESTING FACTS ABOUT UPS • UPS stands for United Parcel Service.

• Beginning its journey as American Messenger Company, it changed its name to United Parcel Service in 1919.

• In 2003, the organization officially changed its name to UPS. • The iconic brown color synonymous with UPS’s trucks and uniforms is called ‘Pullman Brown’, after the luxury railroad cars of the Pullman Company, and it represents class, sophistication, and professionalism.

• While brown is the distinguishing feature of UPS vehicles, it has been reduced to a secondary color for UPS planes next to white to reduce heat absorption and save weight

solution that simplifies the brokerage and export process. By applying machine learning (ML) and artificial intelligence (AI), we save time, reduce errors, and improve the overall customer experience.”

UPS’s advanced brokerage services, including UPS Paperless Invoice, enable customers to electronically submit trade and customs documents, making life easier for customers exporting goods.

This paperless approach reduces the need for manual processing and minimizes customs holds.

Additionally, it eliminates millions of paper documents from the shipping process, delivering a positive impact on the environment.

Constantly innovating and leading the way with digital customs solutions, such as UPS Paperless Invoice, the organization is simplifying the clearance process in a

labor-saving manner.

“With technology as our ally, we are confident in our ability to upgrade and enhance our services to benefit our customers and deliver seamless high-visibility shipping and tracking,” Dexter points out.

in the air.

• In 1975, UPS became the first package delivery company to serve every address in the continental US, giving it an epic nickname – the ‘Golden Link’. In the same year, the organization went international and offered

MOVING TOWARDS A CARBON-NEUTRAL WORLD Fleets, whether operating by land, air, or sea, are essential to the supply chain and logistics industry. With a global footprint in over 200 countries and territories, UPS has seen how climate change, air quality, and other socioeconomic challenges intersect.

The organization is committed to lowering its carbon footprint financially and socially responsibly. Indeed, it has committed to achieving 100 percent carbon neutrality by 2050, with clear goals and plans to reduce emissions across its operations.

its services to Toronto.

• There is a no-left-turn policy for UPS drivers unless it is unavoidable. By favoring righthand turns, the trucks save millions of gallons of fuel each year, thereby avoiding emissions equivalent to over 20,000 passenger cars.

• Chicago became the first city outside California where UPS began serving commercial and residential shippers.

North America Outlook Issue 22 | 13

WAREHOUSE - LED LIGHTING RETROFITS

InLight provides Canadian warehouse operators with a trusted, turnkey LED lighting retrofit partner!

InLight is committed to reducing your energy costs, modernizing your facility, and providing a safe workplace for all employees.

WAREHOUSE BUSINESS CASE STUDY: A SUCCESSFUL RETROFIT

An LED lighting retrofit will reduce your warehouse energy efficient overhead costs dramatically!

Our experienced team of employees and certified electricians make the retrofitting process painless and hassle free. The following is an example of one of our successful retrofit projects:

FACILITY SQUARE FOOTAGE: 98,500 sq.ft.

INSTALLATION DURATION: Seven days PROJECT CAPTIAL COST: $100,000 GOVERNMENT REBATE AMOUNT: $25,250 ENERGY/ MAINT. SAVINGS PER ANNUM: $26,000 NET CAPITAL COST SIMPLE PAYBACK: 35 months

“Your trusted partner for energy efficient LED lighting retrofits”

KEY BENEFITS OF A RETROFIT ENERGY REDUCTION LED Lighting reduces energy consumption by 50 percent to 75 percent

NO MAINTENANCE Eliminates maintenance and replacement costs for five to 10 years

BRIGHTER Provides a brighter, more employee friendly work environment

REDESIGN Opportunity to redesign and optimize the lighting layout of your faciltiy

WARRANTY Five year manufacture warranty

REBATE Most products qualify for government rebates of up to 50 percent of capital project cost

ROI A 12 to 60 month Return On Investment

PROGRAMABLE A variety of programmable motion sensor options minimize energy usage throughout the facility.

To learn more about our company visit us at www.inLightsolutions.ca or neil@inLightsolutions.ca (416) 400-0714 | 2 HOLLAND DRIVE, UNIT 10, BOLTON ON L7E 1E1

Sustainable, Efficient, Responsible Stefan Pacula, President, InLight Solutions North America Outlook (NAO): Please introduce us to InLight Solutions, e.g., an overview of your main products, services, solutions, and locations.

Stefan Pacula, President, InLight Solutions (SP): ‘‘InLight Solutions is a “turnkey” B2B electrical contracting business specializing in LED lighting retrofits. Our “turnkey” service includes an initial lighting assessment, LED lighting solution report, rebate administration, design, fixture purchasing, project management, and installation. We are a onestop shop!’’

NAO: Can you elaborate on what it means to be one of the few companies that offers a national turnkey lighting retrofit service and how this helps to distinguish you from the competition?

SP:‘‘Geographically, Canada is the second largest country in the world; therefore, most electrical contractors are only regional players. Our national clientele want a standardized lighting solution for multiple facilities along with a single point of contact, which only a national company can provide. InLight has completed over a thousand

retrofits from Victoria, BC, to Cornerbrook, Newfoundland.’’

NAO: Are there any recent projects that you would like to highlight?

SP:‘‘The transformation of UPS’s Hamilton Airport warehouse retrofit was amazing! The light level increase has provided the employees with a safe, and productive work environment for many years to come!’’

NAO: I understand that you offer LED retrofitting to your clients, can you expand on the benefits this service offers and why potential clients should be interested?

SP:‘‘The first major benefit to retrofitting facilities with LED lighting is energy savings, as LEDs use up to 70 percent less energy than older technologies like metal halide and fluorescent.

The second major benefit is durability, as LEDs last three to five times longer drastically reducing maintenance costs. Also, LEDs provide a brighter, safer, and more productive work environment for our client’s employees. The bottom line is that LED retrofits are sustainable and generally pay for themselves in less than five years.”

NAO: Could you elaborate on your partnership with UPS Canada? How do the two companies mutually benefit each other, and what complementary strengths do you bring?

SP:‘‘InLight completed LED lighting retrofits for 11 UPS facilities across Canada in 2023.

Before

After UPS had precise engineering standards for light levels and design that InLight was able to meet and replicate across multiple locations.

InLight’s expertise in provincial rebate applications reduced capital costs and increased ROI for many of these projects.’’

NAO: Looking ahead, what are InLight Solutions’ key priorities?

SP: ‘‘InLight will continue to engage with its clients to further reduce energy consumption, modernize their workplaces, and provide state-of-the-art long term lighting solutions.’’

InLight Solutions Inc. (905) 857-7705 sales@inlightsolutions.ca www.inLightsolutions.ca

UPS CANADA SUPPLY CHAIN

Overall, UPS strives to reduce its CO2 per package delivered by 50 percent by 2035 (2020 base year).

To date, UPS has driven more than three billion miles using alternative fuel worldwide and aims to achieve 40 percent alternative fuel in its global ground operations by 2025.

Meeting this goal includes a mix of EVs on the road and electric shifters to move trailers within their yards.

Other targets include achieving 30 percent sustainable aviation fuel in its air network by 2035, reaching 25 percent renewable electricity in facilities by 2025, and 100 percent by 2035.

“We have a strong focus on renewable and biofuel solutions as we see these low-carbon fuels as a bridging solution that will reduce greenhouse gas (GHG) emissions as we transition our fleet to zeroemission vehicles.

“Our company has been investing in alternative fuels for over 20 years, and currently, approximately 24 percent of our Canadian ground fleet runs on alternative fuels, including 133 compressed natural gas (CNG) vehicles, with 76 more arriving this year,” Dexter confirms.

UPS Canada understands the importance of reducing its carbon footprint and has prioritized incorporating alternative fuel and EVs into company operations, continuously expanding its fleets yearly.

“We constantly explore innovative solutions and collaborate with stakeholders in pursuit of our global goal of carbon neutrality by 2050.

We are excited to welcome 20 new EVs to our hubs in Ontario and BC this year.

“By prioritizing alternative fuels and investing in advanced technology, we can significantly impact environmental sustainability in the transportation industry,” says Dexter optimistically.

16 | North America Outlook Issue 22

PAVING THE WAY FOR FUTURE LEADERS As a traditionally male-dominated industry, logistics and delivery companies are recruiting more women to occupy executive positions and operational roles.

Women have made significant strides in UPS’s 117-year history.

Although the organization was founded by two men, it is now under the leadership of its first female CEO, Carol Tomé.

During World War II, women were actively recruited to fill vacant jobs in the company’s operations, from sorting parcels to loading and cleaning vehicles. Indeed, in 1943, Mazie Lanham became UPS’s first female delivery van driver.

‘Brown Betty’ was the term used for any woman working outside the office during World War II, derived from the nickname ‘Brown Buddies’ given to

male UPS drivers and helpers.

Continuously progressive and ahead of its time, UPS employed Arlene Westermeyer as its first female pilot for its newly founded airline in 1988.

Today, three members of UPS’s C-suite are women; furthermore, the UPS Board of Directors is currently comprised of 42 percent women. This ratio is far above that of any other Fortune 50 company.

Among UPS’s many prestigious awards and recognitions, Financial Times added Tomé to its annual Woman of the Year list, recognizing the world’s most influential women.

Delving deeper into how UPS supports women, in 2022, it launched its Proudly Unstoppable initiative, which was designed to empower female-owned small businesses worldwide.

Financial exclusion can be

NORTH AMERICA OUTLOOK: IN A HIGHLY COMPETITIVE MARKET, WHAT DIFFERENTIATES UPS CANADA FROM OTHER COMPANIES IN THE INDUSTRY? Stephanie Dexter, President: “We have UPS MyChoice, an industry-leading inbound and outbound shipment visibility and delivery control app. This gives customers more control over their shipments, including when and where they will receive them. On the flip side, flexible returns are an option, allowing customers to streamline and elevate their experience. Furthermore, with UPS Delivery Photo, customers no longer have to guess when and where their packages were delivered – they can receive photo confirmation for added peace of mind.

“Another convenient service we offer is the UPS Access Point Network, which provides customers with over 1,200 secure pick-up and drop-off locations in Canada, including The UPS Store. This allows customers to easily access their delivery at a location that is safe for their package and convenient for them.

“In 2024, we are also testing new services like UPS Follow My Delivery, which provides customers with pre-delivery notifications and map-based tracking. This level of transparency and communication helps customers plan with confidence and eliminates any uncertainty about the status of their package.”

Another notable achievement within the organization was the announcement that appointed Kate Gutmann to a newly created role as Executive Vice President and President of International, Healthcare, and Supply Chain Solutions in 2022.

AN EMPOWERING APPROACH Before Dexter became the first female President of UPS Canada, her journey with UPS began in 1989 when she started as a package handler in Southeast California. Through hard work and determination, she took on various roles in industrial engineering, human resources, and operations, eventually earning the title of Laguna Package Division Manager in 2007.

Dexter continued to grow within the company, taking on different assignments in hub, air, and package operations in South and Central California.

In 2015, she was promoted to package operations manager for the South California District, but her ambition didn’t stop there.

In 2016, she took on a new challenge as the UK, Ireland, and Nordics District Package Operations Manager.

After gaining valuable international experience, she returned to the US in 2018 and became the president of the Northern Plains District.

challenging for women entrepreneurs who are trying to access capital to start, operate, or expand their businesses. The Proudly Unstoppable campaign strived to negate the obstacles posed to women by partnering with WeConnect International, an organization that provides financial assistance to female-owned small businesses.

Through the partnership, UPS ended up awarding 10 grants in each country to women-owned small businesses. Support was also squareshaped, in the form of specially designed, limited edition UPS Express

Boxes featuring the work of three female artists from Canada, China, and Germany.

Additionally, since 2018, UPS has supported over 17,000 female small business owners around the world to scale globally through the Women Exporters Program. At the same time, the UPS Ignite Program gave out $100,000 in grants in 2022.

Unquestionably, the organization is doing its utmost to ensure that gender disparity is addressed and rectified in the logistics industry and business community.

UPS CANADA SUPPLY CHAIN

Dexter’s impressive resume includes a bachelor’s degree in political science with a minor in economics from San Diego State University and an MBA with a concentration in finance from Louisiana State University, Shreveport. She has also completed the Executive Development program at Emory University and the International Executive Development program at INSEAD in France.

Dexter’s journey with UPS is an inspiration to all, especially to young women looking to break barriers and achieve their professional goals.

It was an honor for UPS to be recognized as the top transportation company for women by the Women in Trucking Association (WIT).

The non-profit organization (NPO) aims to encourage female employment in the trucking industry, promote their accomplishments, and minimize obstacles.

Furthermore, WIT welcomed UPS as its newest Gold Level Partner last year, aiding its mission to empower more women to pursue careers in transportation.

UPS Canada is also providing opportunities, facilitating career advancement, and promoting gender diversity.

“We are proud of our commitment to diversity, equality, and inclusion.

We believe that by providing equal opportunities for all employees, regardless of gender, we can create a more inclusive and successful workplace. Our Women’s Leadership Development (WLD) group is just one of the many ways we are working towards this goal,” Dexter prides.

The WLD program at UPS is dedicated to empowering women and promoting their advancement within the company. With a presence in over 30 countries, WLD serves as a platform for women to voice their ideas and contribute to business innovation and growth. Through 18 | North America Outlook Issue 22

“A S A N O R G A N I Z AT I O N , W E C O M B I N E D I G I TA L S O L U T I O N S W I T H O U R G L O B A L I N T E G R AT E D N E T W O R K T O C R E AT E M O R E VA L U E F O R O U R C U S T O M E R S A N D N E W REVENUE OPPORTUNITIES FOR UPS” – S T E P H A N I E D E X T E R , P R E S I D E N T, U P S C A N A D A

various initiatives such as workshops, mentoring, and networking, the program equips women with the necessary skills and support to excel in their careers.

This emphasis on female leadership is crucial, as it allows women starting their careers at UPS to envision themselves in traditionally maledominated roles and realize their potential for growth within the organization.

“We have a strong commitment to our people-led initiatives, which is one of our core values. This means that all management at UPS Canada has a role in identifying potential leaders and building talent within the organization.

“Our leadership model is built on these principles, and we practice them daily to ensure that all employees have equal opportunities for career advancement,” Dexter asserts.

INVESTING IN WOMEN-OWNED BUSINESSES UPS and The UPS Foundation launched the Women Exporters Program (WEP) in 2018 to address the disparity between men and women regarding education and workforce participation. The program provides targeted assistance to female-owned SMBs worldwide.

Women-owned businesses account for almost one-fifth of all private sector businesses in

UPS CANADA SUPPLY CHAIN

Canada. However, they are still underrepresented in terms of export activity, which creates a huge opportunity for growth.

“We saw a need to help bridge the gender gap in education and export participation, so we’ve partnered with Startup Canada, an independent NPO, to expand and provide the tools and training to assist women-owned businesses grow globally,” Dexter highlights.

THE UPS STORE – THERE’S ONE NEAR YOU! The concept of The UPS Store was introduced in 1980 as Mail Boxes Etc. At the time, it was a convenient alternative to the post office. In 2001, UPS acquired the company, and two years later, the brand as we know it today was launched. The

Stephanie Dexter provides opening remarks at Startup Canada’s Startup Day in Ottawa, Ontario

centers remain locally owned and operated and continue to offer a variety of world-class services.

With 370 convenient locations across Canada, The UPS Store provides convenient and value-added services for small businesses and customers, which include shipping, packaging, printing, shredding, passport photos, notary services, and postal services for individual consumers and small businesses.

Additionally, many The UPS Store locations offer computer rental workstations and graphic design services.

Indeed, small business owners can expect a one-stop shop that provides services such as a street address with 24-hour access for package acceptance from all carriers, package and mail receipt confirmation, mail forwarding and holding, and Call-In MailCheck for quick and easy delivery updates.

Throughout its evolution, The UPS Store has continued to define and lead the business services category it has created.

20 | North America Outlook Issue 22

As of January 2023, WEP has trained over 107,000 female SMB owners all over the world.

“WEP provides tools, training, and networks to help womenowned SMBs connect with potential customers globally through international trade and e-commerce.”

As part of the program, women gain valuable knowledge about exporting, from market access to regulatory considerations. Furthermore, they receive advisory support from small business associations, UPS partners, and Startup Canada mentors and advisors, connect with UPS ambassadors, and are eligible for in-kind shipping credits and special shipping discounts from the company.

“So far, we have had 150 participants from across the country attending webinars addressing the ‘why’ and ‘how’ of exporting, including a walk through the process. We want to change the narrative that you must be a big business to export your products when you just need the correct tools,” she outlines.

UPS’s partnership with Startup Canada goes beyond WEP, as through the affiliation, it reaches over 100,000 entrepreneurs across the country.

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The courier company works with Startup Canada on its Startup Women, Startup Canada Tour, and Startup Gov programs. Participants in WEP additionally have access to connect and engage with Startup Women and Startup Global leaders.

“We are focused on helping small businesses succeed and grow; therefore, our partnership with Startup Canada has been invaluable in enabling us to reach more SMBs,” expresses Dexter.

Startup Canada supports the various needs of SMBs, including connecting them with partners like UPS that have the resources and infrastructure to help them succeed.

“We love to help train, empower, and deliver services to SMBs that give them a competitive edge. Our superior standing in the US market, for example, enables SMBs to expand their footprint outside of Canada with the assurance of visibility tools and excellent service,” Dexter elaborates.

UPS AIRLINES For UPS, the origin of transporting packages by air dates to 1929, and similar to the US Postal Service (USPS), packages were treated as baggage on commercial flights. However, the service was discontinued after Black Tuesday and the beginning of the Great Depression.

Picking up again after World War II, UPS offered a two-day delivery on coast-tocoast packages. Beginning in 1953, the service was called Blue Label Air. Just as they were previously, packages were transported on commercial flights. Initially

DELIVERING WHAT MATTERS

unprofitable, it became popular as its speed created demand.

By October 2020, over 40 percent of Black-owned small businesses were forced to close due to the COVID-19 pandemic. In response, UPS launched a campaign in 2021 to celebrate the power and uniqueness of minorityowned SMBs. UPS strongly believes in the vital role played by SMBs in shaping local communities and driving the global economy. In line with this belief, Proudly Unstoppable was incepted to showcase UPS’s unwavering support for SMBs. Through this initiative, UPS aims to demonstrate that it is not solely focused on serving large businesses, but actively seeks to empower and support SMBs. The Proudly Unstoppable initiative reached Canada, China, and Germany to support diverse-owned businesses disproportionately affected by the COVID-19 pandemic. It was designed to empower women-owned SMBs around the world, helping them grow and thrive.

However, it wasn’t until 1988 that UPS established its airline, winning approval

22 | North America Outlook Issue 22

from the Federal Aviation Administration (FAA) to operate its aircraft, launching UPS Airlines. The cargo air hub is based in Louisville, Kentucky, and is one of the largest freight airlines in the world, flying to 815 destinations worldwide.

The 5.2 million sqft facility at Louisville International Airport is the primary hub, known as UPS Worldport. Additionally, the organization has several secondary hubs across the US, Canada, Europe, and the Asia Pacific region. UPS Canada has 88 daily flights and seven air hubs.

UPS Next Day Air became the first air delivery network to reach every address in the 48 contiguous states, as well as Hawaii and Puerto Rico, in 1985. The organization also began its first intercontinental air service between the US and Europe.

Today, the fleet comprises aircraft including the Boeing 757-200F, 767-300F, 747-400F, and 747-8F, the Airbus A300-600F, and the McDonnell Douglas MD-11F, serving more than 220 countries using a combination of over 500 UPS and chartered aircraft.

Furthermore, every aircraft in UPS’s fleet meets the strictest noise reduction standards both domestically and internationally. It was the first major airline in North America to reach full compliance with the new noise rules. In line with passenger airlines, UPS operates under the hub-and-spoke model for its distribution network.

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Specially designed, limited edition UPS Express Boxes feature the artwork of three female artists from each country the initiative reached. It was the first time UPS has displayed art on its boxes in over 118 years of business.

After shining a light on Black-owned SMBs, the Proudly Unstoppable campaign was expanded to support SMBs with LGBTQIA+, Latinx, and Asian American and Pacific Islander (AAPI) ownership.

The company ran a campaign aimed at supporting SMBs owned by minorities, showing them how they could succeed and thrive in their chosen market with the help of UPS’s expertise and their own passion. The campaign featured online videos encouraging SMB owners to be bold, be brave, and be unstoppable.

Financial exclusion presents a significant challenge for female entrepreneurs as they try to access capital to start, operate, or expand their businesses. Through efforts 24 | North America Outlook Issue 22

such as Proudly Unstoppable, UPS continues to help women obtain resources as the campaign strives to make a tangible impact.

The artists were offered essential information to effectively illustrate the power of women supporting and lifting each other up. For instance, Marian Bantjes, a Canadian artist, boldly portrayed a pattern of women holding hands, symbolizing the undeniably strong values of connectivity, unity, and community.

Meanwhile, Chen Peng, an artist from China, shows the vital role of Chinese women in society, with SMB owners from different professions helping and supporting each other, whilst German artist Dani Pollehn rendered the hero in a confident and charismatic manner, wearing a vibrant coat which embodies her success.

UPS is a driving force in promoting diversity and inclusivity and is committed to creating a world where everyone is valued and respected.

By prioritizing these values, UPS is not only positively impacting its employees and customers but also setting an example for other companies to follow. There is no doubt that UPS is moving the world forward towards a brighter and more equitable future.

THE FUTURE IS BRIGHT UPS Canada looks to improve its customer value proposition each year, increasing talent development and employee engagement and leveraging its physical network with a digital platform to drive logistics as a service.

“We are focused on driving growth and creating value for our customers across the Canadian network to stay ahead of the ever-changing logistics landscape. We will achieve this through new digital products and expanded service offerings, including Saturday delivery, adding capacity to our network, increasing

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As leading package and freight logistics service providers are seeing growing flows of goods and parcels, automation is becoming a necessity to keep up. And SICK is a triedand-true partner for many logistics providers as they work to keep up with the pace of an evolving industry. If you work with SICK, you may see things like: • An increase in the throughput of your sorting center: this is accomplished with read systems that deliver reliable data, even at very high conveyor speeds

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UPS CANADA SUPPLY CHAIN

UPS Canada’s vehicle fleet includes 10 EVs

efficiencies through automation, and growing our volume of packages to create more jobs,” Dexter reveals.

Currently, it is an exciting time for UPS Canada as the company is working on several ongoing and upcoming projects to improve its customer service and enhance its operational efficiency across the country.

Guided by its values and driven by innovative strategies, the future of UPS Canada is as promising as ever.

“We will continue to lean into the parts of the market that value UPS’s integrated end-to-end network, focusing on speed, service, and customer experience. These are areas that do and will continue to differentiate UPS Canada and the wider organization from the competition,” concludes Dexter.

With nearly 50 years of delivering quality service in Canada, the company has much to look forward to in the future, with sustainability initiatives, women in business 26 | North America Outlook Issue 22

“ W I T H T E C H N O L O G Y A S O U R A L LY, W E A R E CO N F I D E N T I N O U R A B I L I T Y TO U P G R A D E A N D E N H A N C E O U R S E RV I C E S TO B E N E F I T O U R C U STO M E R S A N D D E L I V E R S E A M L E SS H I G H -V I S I B I L I T Y S H I P P I N G A N D T R AC K I N G ” – S T E P H A N I E D E X T E R , P R E S I D E N T, U P S C A N A D A

programs, and the implementation of its new Saturday residential deliveries with its UPS Standard service.

UPS Canada is strategy-driven and people-led, and as customers want a trustworthy and reliable courier service, the company will continue to innovate and uphold its standards.

A BRIEF HISTORY OF UPS UPS Founder, Jim Casey, left school at age 11 in 1899 due to his family’s financial struggles and began working as a delivery boy in Seattle.

He worked for a department store before moving on to a tea store. After two years, he decided to work as an

American District Telegraph (A.D.T.) messenger boy while returning to school. With his younger brothers also working, they were able to support their family after their father fell ill and died. Their mother managed the household alone with prudence and frugality, providing them with clean clothes and warm meals despite their varying schedules. Inspired by his mother’s ethics and encouragement, Casey returned to seventh grade with ambitions of attending Yale or Harvard like President Theodore Roosevelt; however, he only made it halfway through high school while still working long hours at A.D.T., including

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During his time at A.D.T., Casey worked under Frank Edwards, who later became Mayor of Seattle. His first job was to carry a heavy bag for a lady to a suburban car terminal.

As an A.D.T. messenger boy, Casey had many experiences dealing with different people and circumstances.

His tasks varied greatly: delivering telegrams; waking up engineers and firemen in the middle of the night for emergency railroad runs; carrying trays of food from restaurants to hotels; delivering written messages before the extensive use of telephones; collecting mail from post offices; running errands for retail stores; fetching bail money for prisoners in jail; transporting pitchers of beer from saloons to homes (“rushing the growler”); and even babysitting in hotel rooms while parents attended theater shows.

During the gold rush era, Seattle was the main port for Alaska-bound miners who spent winters there due

to harsh mining conditions. These miners often carried bags of gold dust and nuggets which they spent freely while waiting for spring. As Jim walked through rainy streets on his errands, he envied these men sitting comfortably in hotel lobbies dreaming that one day he could do the same.

Casey, along with two fellow messengers, left A.D.T. and started their own messenger business.

They relied on telephones for communication as they were becoming more common at that time. After nearly two years in this business, they sold it to seek fortunes in Nevada’s gold fields. In Goldfield, Nevada, instead of finding gold, they established a messenger service where they did all the work themselves. This venture lasted over a year despite interruptions and changes in partnership. After leaving Goldfield without any fortune, Casey returned to Seattle where he was invited to establish another messenger service due to his

experience. At 19 years old, he had to start anew.

In August 1907, Casey and his partners started the American Messenger Company in Seattle.

They rented a small space under a sidewalk next to a saloon for $25 per month (later reduced to $15) and equipped it with an old counter, two telephones, and a bench for their five or six messenger boys.

The company advertised as offering the “Best Service - Lowest Rates”, which was challenging given the competition. They carefully selected reliable boys who lived at home with their parents and provided them with uniform caps. Instead of promising immediate service when they couldn’t deliver, they gave honest estimates of delivery times. Despite few calls initially, they stayed open all night and on Sundays to ensure reliability. The rate for short trips was 15 cents, but they established zone rates up to 65 cents for distant trips. Large customers were offered North America Outlook Issue 22 | 27

UPS CANADA SUPPLY CHAIN

UPS Canada facility at Ajax, Ontario

monthly discounts based on volume.

To reduce costs further and attract more business from retail stores, they began consolidating deliveries on regular schedules in 1913 using one Ford car and several motorcycles.

Their corporate name changed to Merchants Parcel Delivery, reflecting this shift in focus, and later became United Parcel Service. After realizing that there were only a few successful parcel delivery businesses across the US, Casey concluded that success would require innovative ideas beyond what others had done before.

Preceding the creation of UPS is the rich history of the courier industry, 28 | North America Outlook Issue 22

which dates back all the way to ancient Egypt when letters would be sent in a box down the River Nile, escorted by a guard.

The world’s first sophisticated postal service can be traced back to 521 BCE when Cyrus the Great is believed to have set up roads to transport general mail between his citizens and neighboring cities.

The word ‘courier’ originates from the Latin ‘currere’, which means ‘to run’, and marathon refers to the Greek messenger Pheidippides, who ran 26 miles to Athens after the Battle of Marathon to announce their defeat of the Persians. After promptly dying

on arrival, he was memorialized in marathon events we see today.

Horses eventually replaced couriers on foot, with Greeks and Romans making deliveries by horse and chariot the most common method.

Nevertheless, being a courier is one of the oldest professions in the world. It became a vocation in the Middle Ages and evolved as royal courts began to pay messengers to deliver letters.

Today, communication via mail is disappearing, with modern technology connecting people globally, quickly, and efficiently.

Still, being a courier wasn’t for the faint-hearted. During the US Civil

UPS CANADA SUPPLY CHAIN

War and the Louisiana Purchase, the California Gold Rush brought 300,000 people from throughout the country and overseas to the Sierra Nevada mountain range.

At this time, The Pony Express was incepted, shipping packages from the East to the West Coast in just 10 days by horseback rather than stagecoach, transforming the courier industry.

Although the service was credited for its speed and efficiency, technological advancement soon replaced it.

Before the mid-1800s, there weren’t any actual courier companies with a broader network in the US. The first nationwide and international

delivery business established in the country was Wells Fargo in 1852, who transported payments and valuables by steamboat and stagecoach, which, by today’s standards, weren’t very timely or reliable.

In 1918, the first shipment was transported by air from the US at a time when packages were mostly sent via train, truck, or motorcycle. In the same year, the first official airmail flight was made in Canada from Montréal to Toronto.

Leading the way, Winnipeg installed equipment that automatically segregates, stacks, and cancels mail – the first of its kind in North America.

Meanwhile, in the UK, between 1927 and 2003, the London Underground was used as a courier service called ‘Mail Rail’. Although it had a long run, it was eventually phased out as it became much more expensive than modern courier services.

No matter how mail and packages are delivered, couriers hold a special place in US history. Spanning from 1775, when Paul Revere, known for his Midnight Ride, rode through the towns of Lexington and Concorde on horseback to warn residents of the approach of the British militia, to the current integrated technology that is key to a modern-day, efficient delivery system.

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North America Outlook Issue 22 | 29

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