Lessons from the Pandemic

Delivering what matters

By UPS Poland

During a period of unparalleled activity, when the pandemic spread leaving national economies and businesses counting the costs, UPS has been a proud and trusted partner of governments and business alike as we continue to deliver what matters in a safe and reliable manner. Whether that is lifesaving vaccines, or Christmas gifts, UPS is continually investing in its smart global logistics network to provide choice, convenience and control in an uncertain business environment.

What we have learnt

The pandemic has acceleration of a number of global trends. The first mega trend accelerated by Covid is the shift to B2C, which has packed three years’ growth into a little over 18 months. PwC's analysis Prospects for development of e-commerce market in Poland 2021-2026 shows that the gross value of the Polish e-commerce market will increase to 162 billion złotys in 2026, an average yearly growth of 12%. Compared to many Western markets, there are still relatively few online stores, which presents a huge opportunity for Poland. The second mega trend is the globalisation of healthcare. A case that perfectly reflects this process is the delivery of vaccines. So far UPS has delivered 600 million vaccines at 99.999% on-time delivery in over a 100 countries and we will deliver a billion by the end of the year. The third megatrend is the regionalisation of supply chains. Due to stock-outs caused by Covid, there was a need for infrastructure closer to consumption.

Delivering what matters

Looking to the future, we have an essential role to play in Europe’s sustainable post-pandemic recovery. The world-class healthcare network used today for the movement of the Covid-19 vaccine is the network that will be used tomorrow to service the growing biopharmaceutical market. The need for technology-driven and temperature-controlled supply chains will only grow and we have shown how quickly we scale to accommodate special needs in this growing sector. New cell and gene therapies are among the most complex and sensitive in our industry and we are planning on a best-in-class level of performance. We will continue to invest in our capabilities and maintain a leadership position in the clinical-trial logistics industry.

In September 2021, we opened a new healthcare facility in Ostrava, Czechia. Located in the heart of Central and Eastern Europe, this new facility offers access to this fast-growing market and supports hospital and pharmacy distribution domestically and to Slovakia, Poland, and Hungary. The state-of-the-art 3,800m² GDP (good distribution practice)-compliant space includes multiple validated controlled-temperature environments.

One of UPS Healthcare’s latest investments in Europe is a warehouse in Błonie, Poland, which is planned to open in December 2021. The 24,500m² facility based close to Warsaw, is ideally located to provide active air- and ground transportation with domestic and cross-border services across Europe. It will offer extensive services addressing a full range of logistics needs from healthcare-licensed distribution space, to supply chain management.

Sustainability as a key to thrive

The time of the pandemic has shaped the new consumer trends we will face this year and in the years to come. These trends have been identified by Euromonitor as a trend towards a more sustainable world – consumers expect companies not to be solely concerned with their own revenues and profit. In their actions they should show concern for consumers' health, social interests and the welfare of the planet. Consumer expectations in terms of sustainable development are not only already high, but will continue to grow. According to the UPS Smart E-commerce report 2021, Polish consumers are of the opinion that companies should take care of the environmental impact of their offer and become more involved in ecological activities. Half of Poles declare taking ecological principles into account when making purchases – we are ready to give up buying a product if the manufacturer has a negative impact on the environment.

At UPS, we recognise corporate social responsibility or sustainability as the business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting and enhancing the human and natural resources that will be needed in the future. For UPS, sustainability is not just a corporate programme. It’s personal. Responsible business practices require everyone to diligently seek new ways to provide excellent service while also making a positive impact on the world. In our sustainability efforts, UPS focuses specifically on economic and global literacy, environmental sustainability, nonprofit effectiveness, diversity, and community safety. All of our activities build on the long-held belief that our success is dependent on the balance of social, economic, and environmental aspects of our business, and time has proven that our efforts in these areas give us improved efficiencies, employee pride, customer loyalty, and brand equity. In June 2021, UPS has announced a new set of company-wide ESG targets, including its pledge to be carbon neutral across Scope 1, 2, and 3 emissions* in its global operations by 2050. Interim 2035 environmental sustainability targets include a 50% reduction in CO₂ per package delivered for its global small package operations (2020 base year), 100% of company facilities powered by renewable electricity, and 30% of the fuel used in its global air fleet be sustainable aviation fuel.

Investing to support SMEs

Continuing to accelerate the digitalisation of businesses, building resilience in global supply chains, and creating a truly low-carbon economy sit at the core of helping our customers not only recover but prosper. To improve our efficiency in September 2021, UPS opened its expanded air-hub at East Midlands Airport (EMA) in the UK. The £138 million investment strengthens the connection between the Midlands region and businesses throughout the country to UPS’s global smart logistics network. Regional SMEs can benefit from the six daily flights that connect EMA to key markets, including Germany and vital trans-Atlantic opportunities in the US. The expanded EMA air hub is 36,000m² and can now sort up to 22,500 packages per hour – more than twice the capacity of the previous facility and is fitted with the latest package sorting technology that further increases efficiency, reliability, and speed. We also opened our new Prague package sorting and delivery facility in Tuchoměřice, Czechia. The new facility, which represents UPS’s largest-ever investment in the country, has an operating area of 9,000m² and is fitted with the latest package sorting technology, allowing us to sort up to 5,000 packages per hour. UPS also opened two airways in Poland, a key growth market, at Gdańsk airport and Copernicus airport in Wrocław. All these investments add to what is already one of Europe’s fastest trans-border networks, offering greater flexibility and opportunities for Polish businesses.

To go further

The demands in front of the world are unprecedented, but not undeliverable. UPS stands ready to offer service, expertise, and resources to assist in bringing the Covid-19 pandemic to an end. Moving our world forward by delivering what matters, UPS looks forward to working with governments in accomplishing the tasks ahead and bringing an end to the pandemic.

*Scopes for carbon neutrality

Scope 1	Scope 2	Scope 3
Fuel combustion Company vehicles Fugitive emissions	Purchased electricity, heat and steam	Purchased goods and services Business travel Employee commuting Waste disposal Use of sold products Transportation and distribution (up- and downstream) Investments Leased assets and franchises

Scope 1

Scope 2

Scope 3

Fuel combustion

Company vehicles

Fugitive emissions

Purchased electricity, heat and steam

Purchased goods and services

Business travel

Employee commuting
Waste disposal
Use of sold products

Transportation and distribution (up- and downstream)

Investments

Leased assets and franchises

Source: Carbon Trust

For more information and cooperation with UPS Poland please contact Anna Stefanowicz at astefanowicz@ups.com

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