The number of software developers who are embedding UPS (NYSE:UPS) shipping tools in their products has more than doubled in just the past year, in the process extending easy UPS access to thousands of additional businesses around the globe.
These software applications link many business processes, including enterprise resource planning (ERP), accounting, customer relationship management (CRM), shopping cart and e-commerce systems. Under a program known as the UPS Product Provider Program, the developers are incorporating UPS OnLine® Tools, which in turn become easily available to support shipping by end customers of any size.
At the end of 2002, 30 such applications had incorporated UPS OnLine Tools. The number stands at 57 today and will exceed 60 by the end of this year. In the process, shipping volume associated with the program rose more than 100 percent compared to the prior year.
The number of third-party applications with integrated UPS technology stood at just 17 at the end of 2001, the first year of the program.
“The Product Provider Program is an excellent real-world example of UPS’s e-commerce strategy: embedding easy-to-use, UPS-enabled e-commerce solutions to serve customers at critical points within their business practices,” said Jordan Colletta, UPS’s vice president of e-commerce marketing.
“Working with third-party vendors allows us to expand our reach while adding value to their applications,” he said. “And the vendors’ customers get more streamlined, more comprehensive, all-in-one solutions.”
Eric Ross, senior product engineer for Nexternal Solutions of Carlsbad, Calif., agrees the program certainly is paying dividends for his customers.
“By integrating UPS OnLine Tools, Nexternal has created a complete solution,” Ross said. “Both merchants and shoppers benefit from real-time rate calculation, address validation and tracking tools that Nexternal’s e-commerce solution now provides. And that has given our merchant clients and their customers a better way to do business online.”
Nexternal’s software, integrated with UPS OnLine Tools, allows Rutherford, Calif.-based Niebaum-Coppola Estate Vineyards and Winery to quote accurate shipping costs to its customers, said James Drake, e-commerce manager. That has helped boost sales, said Drake, who noted that revenues have grown more than 50 percent since the winery upgraded its online store.
Among the UPS OnLine Tools, the most popular appears to be the Rates & Service Selection, which has been integrated in nearly 90 percent of the participating third-party applications and supports more than half of the transactions. The tool allows users to compare, price and select UPS shipping services that best fit their needs and budget.
Also popular are UPS Tracking, which provides up-to-the-minute status on shipping; UPS Address Validation, which ensures that shipping addresses are correct at the time of order, and UPS Time in Transit, which enables customers to compare the speed of different UPS shipping services to anywhere UPS delivers around the world. In addition, UPS Shipping allows users to manage shipping from their desktops, including printing labels.
UPS is working with software developers across the globe, including Australia, Canada, Germany, the Netherlands, New Zealand, Spain, the United Kingdom and the United States. A few examples include:
Actinic: Actinic provides shopping cart software and e-commerce solutions for small and medium businesses, currently to about 10,000 users in more than 40 countries. About 300 stores in the U.S. currently run Actinic software with UPS Online Tools, and the next version will include OnLine Tools for the United Kingdom and Canada.
Celerant Technology: Celerant Technology has integrated UPS OnLine Tools into its Celerant Retail Management System (RMS), a point-of-sale software system for retailers. While retail organizations have typically managed shipping and retail management on separate systems, RMS uses one database to integrate the entire retail supply chain, including shipping, in real time.
NetSuite Inc.: NetSuite provides ERP and CRM application software for small and mid-sized businesses. NetSuite customer Companion Products says the integration has reduced shipping processing time by 50%.
The UPS Product Provider Program is only one component of UPS’s effort to work with world-class companies to improve business processes for customers. More than 60,000 businesses in 40 countries have licensed UPS OnLine Tools since their introduction in April 1999, integrating the tools directly into their Web sites and allowing their customers to use the tools to manage their shipping.
UPS also announced in June it has extended its relationship with eBay, the world’s largest online marketplace, integrating UPS OnLine Tools. Buyers and sellers can now calculate costs for various UPS services, track UPS shipments, review transit times and print shipping labels, all at the point of transaction.
More information on participating in the UPS Product Provider Program is available at ec.ups.com. More information on UPS OnLine Tools and other UPS e-commerce solutions is available at ec.ups.com.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at www.ups.com.
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