CEO Global Insights Series

UPS is the world's largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions. Each business day UPS delivers packages for 1.8 million shipping customers to 6.1 million consignees in over 200 countries and territories. Additionally, UPS provides supply chain solutions to clients in over 180 countries and territories.

The following is an interview with Scott Davis, CEO of UPS.

How are UPS clients adjusting to the current worldwide economic situation?

Without question, we are in the midst of an economic situation unlike any we have seen in several decades and it’s affecting nearly every business on the planet – large and small alike. As a result, every point in the global supply chain has been impacted to some degree, from the factories that produce finished goods to the end consumers who buy them. At UPS, we’re helping our customers get through these difficult times by providing transportation and logistics solutions that can improve their efficiency and hopefully get them in a better position for growth and prosperity when the economy turns around.

Scott Davis, CEO of UPS

Do you see any particular challenges for smaller businesses?

Even in this economy there are opportunities for growth, but in order to capitalize on them, businesses need to be willing to expand their horizons a little. Going global isn’t just for big companies. We have customers who started small – some actually working out of their kitchens or garages - who took that first step into Canada or Mexico, and today they’re reaching new customers in new markets all over the world. Granted, doing business globally won’t completely insulate you from downturns in the economy, but it can certainly put you in a better competitive position than a company that focuses exclusively on its home market.

What are some of the stronger international markets right now? What are some of the more challenging ones? Do you see any “unsung” markets with great potential?

While they may not immediately come to mind, China and India, which are often identified as being the factories to the world, offer great potential for U.S. exporters. Both countries have growing consumer classes with a desire for Western goods. And of course, closer to home, Mexico and Canada are strong markets for American products. The key to success, regardless of the markets you want to pursue, is to do your home work. The U.S. Commercial Service can provide some incredible resources for even the smallest company interested in exporting. And UPS’s extensive portfolio of international services can help you reach your customers quickly and efficiently, wherever they may be.

Has anything surprised you about how exporters are dealing with the current economic situation?

Frankly, I’m inspired and amazed at their optimism. In a recent UPS survey of small business owners, 62% of those who trade internationally expressed optimism about their future economic condition compared to 39% of small companies focused exclusively on the domestic market. Unfortunately, almost 75% of those polled do not engage in international trade and have no plans to do so. Most of them cite unfamiliarity with global markets, language barriers and apprehension about preparing customs and other documents as the main reasons why they aren’t trading across borders - - but these all are barriers that the U.S. Commercial Service and UPS can help potential exporters overcome.

What’s your long-term view of the economic situation?

It may take some time to turn things around, but I am confident and optimistic about the future. UPS has been around for over a century and in that time we’ve seen world wars, recessions, a depression -- you name it. Ultimately, the economy will improve and the companies that will see the greatest opportunities for growth and prosperity are those that are expanding into new markets, just as UPS has always done. With the resources that are available to exporters today, there isn’t any reason to avoid venturing out into the global marketplace.

What’s your advice to small businesses that might be timid or wary about selling internationally right now? How about companies looking to expand existing international sales?

Start small and see where things go. You don’t have to conquer the world overnight. Consider Canada or Mexico as potential markets and do a little research. The U.S. Commercial Service can help you learn everything you need to know, and UPS offers a wide range of services that can make shipping your products across borders nearly as easy as shipping them across town. Once you get started, you’ll probably wonder why you didn’t consider exporting sooner.

What should small companies know about logistics when selling internationally? Do they have common misperceptions and if so, what are some of the things they might do wrong? What can they do to avoid potential problems?

It’s important to do your due diligence. First, you should ask yourself some questions about your shipping and logistics requirements. How fast do you need to get your products to your customers? How important is shipment visibility -- tracking and tracing -- to you and your customers? Do you prefer to have one carrier door-to-door? Whatever your needs, ultimately you want to select an established shipping partner with a reputation for reliability, good service and worldwide reach that offers a variety of freight and small package services to suit your needs. Your reputation can be won or lost by your shipping partner, so choose wisely.

 

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With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce's International Trade Administration utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information, visit www.export.gov.