Big brown machine

Dan Brutto has overlooked a number of UPS developments in the Middle East, including its latest joint venture in Dubai
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Dan Brutto, president of UPS International, explains why the company will continue to invest in the Middle East market.

United Parcel Service (UPS) has prided itself on turning the ‘brown’ brand into a household name across the world. The nickname ‘the big brown machine’ was tagged onto one of the world’s leading courier companies due to its preferred hue for the easily recognisable uniforms and vehicles associated with the brand.

Servicing more than 200 countries and regions worldwide, the company even plays on its colour co-ordination with its advertising ploys – regularly asking clients “What can Brown do for you?”

Keen to captivate the Middle East with its catchy image, UPS has been determinedly drumming up business despite financial times fraught with the recession.

This summer saw an announcement for the company’s infiltration plans in the region, with a Dubai-based joint venture aimed at developing the UPS express package, freight forwarding and contract logistics services across the Middle East, Turkey and parts of Central Asia.

Having acquired the small package operations of Turkey’s Unsped, UPS hopes the joint venture will provide it with a strong position for growth across the region. Unsped itself has shown an impressive record of annual growth over the past three years, with revenues having increased over 18%.

The endeavour looks likely to be a smooth transition - Unsped’s experienced employees are set to become part of the venture and its systems are already linked up to the company’s back-end processing due to its role as one of UPS’ service agents in the region.

Being geographically based in Dubai also brings with it many advantages. “We see this region growing as a transportation bridge and near-sourcing location for Europe, Russia and Asia. With this collaboration, we more effectively leverage our network and capability,” explains Daniel Brutto, president of UPS International. “UPS management is now closer to the 21 countries that belong to the new block in order to coordinate activities with service contractors, existing joint venture partners and operations.”

The company’s meticulous forward-planning has been hugely responsible for turning the courier into a leader in the sector – and Brutto himself has played no small role in this. In the heavy-weight role of UPS International president, Brutto is responsible for all international package, freight forwarding and logistics businesses, as well as US international package services. He is also part of the UPS management committee, which runs the day-to-day management of the global company.

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Coming with 35 years of UPS experience, Brutto keenly recognises an opportunity for business growth when he sees one.

It is no wonder that the region has UPS eager about the future, with the company keen to seek new and better ways of imprinting its network firmly into the region.

“Since the Middle East has some of the largest and busiest ports in the world, we’re able to facilitate trade through the region with our ocean and air freight forwarding services, in addition to express package services,” says Brutto. “The region offers benefits to manufacturers with low-cost inputs and reduced logistics expenses if finished products are within the regional market, India or Africa.”

When it comes to developing the business, Brutto knows the score. He was president of Global Freight Forwarding for UPS prior to taking his current position, and part of the international acquisition and financial integration team in the 1990s, responsible for establishing operations in 35 countries across Europe and Asia. Not surprisingly for the experienced Brutto, conquering the Middle East is an exciting prospect, despite the current financial situation.

“Even in today’s economic environment, our share of the international market has increased due to the commitment of our people, the scope of a global network and broad product portfolio that facilitates global trade,” he emphasises. “Emerging economies are poised for increased domestic consumption, as well as production and assembly from near-sourcing that helps small and mid-sized companies enjoy growth closer to their markets. UPS is well positioned to work with trade flows both within and beyond regions.”

The joint venture is by no means the first of the company’s steps to develop the Middle Eastern market.

UPS first entered the Middle East way back in 1987 by setting up import operations in Bahrain. From this point, the company steadily grew, offering a service portfolio that combined local expertise through service contractors and joint ventures within countries. The initial service in Turkey involving Unsped was set up a year later in 1998. As Dubai became an increasingly important gateway, UPS used its geographical vantage point to link business regions and leverage its global network for more efficient sorting and bypass operations.

Last year, an additional provision was added to its express shipping services. UPS Expedited was introduced across seven countries in the Middle East, namely the United Arab Emirates, Saudi Arabia, Bahrain, Egypt, Kuwait, Oman and Qatar. The new service specifically targeted customers with less urgent shipments to major international destinations, in the courier’s attempt to continue reducing challenges to the free flow of trade in the region. UPS also announced expanded domestic express small package pickup and delivery services to cover 15 additional countries including the United Arab Emirates and Saudi Arabia.

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