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Scott Davis-Driving UPS Into The Future


D. Scott Davis has served as Chairman of the Board and Chief Executive Officer of United Parcel Service Inc., since 2008. Headquartered in Sandy Springs, Georgia, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world. UPS employs approximately 425,300, with 358,400 in the U.S. and 67,300 internationally.

The history of UPS began in 1907 when 19-year-old Jim Casey and 18-year-old Claude Ryan founded the American Messenger Company in Seattle, Washington, capitalized with $100 in debt. Six years later the first delivery vehicle, a Model T Ford, was added, and Casey and Ryan merged with competitor Evert McCabe to form Merchants Parcel Delivery. Deliveries became consolidated, with packages addressed to a certain neighborhood going onto one delivery vehicle. In 1919 service started in Oakland, California, and the name United Parcel Service was adopted.

A consolidated service began in New York City in 1930, and other major cities in the East and the Midwest were added soon after. The first mechanical system for package sorting was incorporated.  All UPS vehicles were painted the familiar Pullman brown, chosen because it was considered neat, dignified, and professional. Headquarters move to New York City. In1952 Blue Label Air was established.

By 1975, UPS was servicing all of the 48 contiguous states, and established Canadian operations that year, beginning in Toronto, Ontario, with a single delivery truck. The next year UPS began European service with a domestic operation in West Germany.

In 1982, UPS Next-Day Air Service began being offered in the U.S., and Blue Label Air became UPS 2nd Day Air Service. Six years later UPS Airlines was launched.

Scott Davis joined UPS in 1986 when the company acquired an Oregon technology company, II Morrow, where he had served as the CFO and later CEO. From 1991 to 1998, Davis held positions at UPS of increasing responsibility as treasury manager, financial reports and plans manager and accounting manager. From late 1998 to early 2000, he served as chief executive officer of Overseas Partners, Ltd., a Bermuda reinsurance company. He rejoined UPS as its vice president of finance in 2000.

In 2001, UPS acquired Mail Boxes Etc. and renamed them “The UPS Store.”

UPS entered the heavy freight business in 2004 by purchasing Menlo Worldwide Forwarding, a former subsidiary of Menlo Worldwide, for $150 million. UPS renames the company “UPS Supply Chain Solutions.” The next year it acquired the less-than-truckload trucking company Overnite Transportation for $1.25 billion. After approval by the FTC and Overnite shareholders, Overnite officially becomes UPS Freight. In 2005 UPS launched the first non-stop delivery service between the U.S. and Guangzhou, China. That same year, UPS acquired the interest held by its joint venture business partner in China, giving it access to 23 cities that cover more than 80% of the country's international trade.

In 2007, United Parcel Service celebrated its 100th anniversary. Davis became Chairman and Chief Executive Officer on January 1, 2008.

Under Scott's leadership, UPS has made significant improvements in its logistics network as the company has expanded its reach and capabilities through Europe, Asia, and the Americas. He also has presided over rapid growth in international operations and supply chain and freight.

In 2010, Scott led a strategic transformation of the company's U.S. small package organizational structure. Also, he has overseen UPS's status as a sustainability leader, including improvements in the fuel efficiency of the UPS air and ground fleet, along with the deployment of the industry's largest alternative fuel fleet. Asked about the history and future of UPS, Scott said "Innovation, execution and growth capture the UPS of yesterday, today and tomorrow. It is a simple formula for our past successes and a roadmap for the future."

Phil Robertson, Editor