UPS: Using Technology to Expedite International Shipments
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As a leader in enabling global commerce, the automated tracking system in use
at WorldPort, a US$1.1 billion facility that serves as the centerpiece in UPS’s
global package delivery operation, facilitates international shipments by allowing
U.S. Customs to process shipments through query functionality. What’s more,
the system also gives U.S. Customs officials new tools to identify and stop potentially
dangerous or illegal imports.
The Building that Wasn’t
Thanks to this innovative technology, UPS was able to save approximately US$70
million by eliminating the need for a separate U.S. Customs Service building
to be added to its WorldPort facility located in Louisville, Kentucky. How?
With a new automated system that tracks packages as they speed through the sorting
process, the entire hub qualified as the “controlled building” required by federal
law.
Here’s how it works.
Imported goods are required to be handled separately from domestic shipments.
However, with UPS’s tracking and sorting systems, which are very tightly
controlled, both can be loaded into the general sorting operation. Tracking
labels on the packages allow selected shipments to be automatically routed to
U.S. Customs inspectors for a closer look.
Previously, inspectors had to scan manually through long import reports, looking
for clues of suspect packages. A package that seemed too large for its declared
contents or a shipment from a country known as a drug haven might alert an inspector
to have the package X-rayed, sniffed by a dog, or opened for a visual search.
The problem for Customs was that the volume of packages was increasing. (For
example, WorldPort has a sorting capacity of 304,000 packages an hour.) One
apparent solution to the volume problem was to eliminate the need to scroll
through data with the naked eye. Enter UPS.
UPS’s software allows U.S. Customs inspectors to filter through shipping
manifests using any search query they choose, including the name of the shipper
or recipient, the description of the goods, or the weight or declared value
of a shipment. In addition, inspectors can set up recurring filters that constantly
scan for predetermined patterns that signal a package requires further inspection.
The automated sorting system also gives inspectors more control over package
flow, reducing the chance for human error in releasing a targeted package before
it’s been cleared.
By assisting U.S. Customs with an innovative technical solution, UPS is better
able to serve its customer. For example, UPS clears 99 percent of its routine
small package customers’ shipments within 24 hours.
Transparent to Customers
This entire process is totally transparent to UPS customers, yet the technology
is helping to ensure that the customer’s shipment is expedited and not
held up at the port of entry. While UPS customers have always enjoyed exemplary
service in this regard, the technology enables UPS to provide that service in
a more efficient and cost-effective manner.
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