Mismatch Between Supply and Demand to Continue Into 2022: UPS

The transcript discusses the challenges faced during COVID, including supply chain bottlenecks and vaccine distribution. It highlights efforts to increase capacity and adapt to changing demands, with a focus on intra-regional supply chain redesign. The company is adding capacity and adjusting pricing to manage demand surcharges. Planning and flexibility are emphasized as key strategies in navigating uncertainties, with a significant shift towards e-commerce. Future trends suggest continued growth and adaptation in logistics, with a focus on regionalization and increased demand.

What was one of the main challenges faced by the company during COVID?

• Lack of demand for products

• Manufacturing shutdowns and lockdowns in Asia

• Excess inventory levels

• Decrease in vaccine distribution

How is the company addressing supply chain bottlenecks?

• By reducing the number of facilities

• By increasing product prices

• By expanding capacity and opening new facilities

• By limiting customer orders

What is a significant factor affecting cargo capacity?

• Reduction in freighter aircraft

• Decrease in global demand

• Grounded passenger aircraft

• Increase in passenger flights

What is the expected trend for supply and demand mismatch?

• It will resolve by the end of the year

• It will continue well into next year

• It will decrease significantly

• It will not affect pricing

How has the pandemic affected online shopping behavior?

• It has decreased by three years

• It has shifted to in-store shopping

• It has accelerated by about three years

• It has remained the same

What tool is the company using to support SMBs in cross-border shipping?

• A manual tracking system

• A new logistics software

• A third-party shipping service

• An AI tool called Ikebe

What is the company's approach to handling increased demand?

• Reducing the number of aircraft

• Maintaining current capacity

• Continuing to add capacity

• Outsourcing to other companies