UPS said Monday it will shuffle some leadership roles as it shifts to a new operating model aimed at boosting its worldwide reach.
The changes come as UPS evolves from a carrier of small packages to a provider of global logistics services. This includes a recent effort in which the company reduced its lower-margin shipping with Amazon and pushed into more lucrative business lines, including healthcare and industrial logistics.
With the strategy, UPS said Monday it would standardize operational processes across geographic divisions while staying flexible to the needs of local markets.
“By combining global standardization with local market responsiveness, we will create greater efficiency, enhance customer experience, and strengthen our ability to grow around the world,” UPS CEO Carol Tomé said in a news release.
With the shift, Nando Cesarone, who served as president of the company’s U.S. operations, will now become chief global operations officer.
Cesarone will oversee the company’s global air network and gateways, surface transportation, building and engineering operations, automotive operations and sustainability functions. He will report directly to Tomé.
UPS said Cesarone would receive a restricted stock unit valued at $6 million as part of a retention agreement, according to a filing with the U.S. Securities and Exchange Commission.
Credit: web
Credit: web
Matt Guffey, who served as chief commercial and strategy officer for UPS, will become chief U.S. domestic officer. He will be responsible for the company’s U.S. businesses, including the small package business, Roadie, Happy Returns and UPS Stores. Guffey will report to Tomé.
UPS also said it is creating a new role of chief global commercial strategy officer, which will oversee global strategy, marketing and communications, product management and pricing. The company is conducting a search to fill the position.
Over a period of 18 months, UPS cut its Amazon shipping volume by more than 50%, which has led the company to reconfigure its shipping network, including cutting jobs and closing buildings.
Meanwhile, UPS has boosted its capabilities in more complex shipping transactions, and in the second quarter reported that its average revenue per piece increased 11.3% as the company delivered less packages.
UPS on Monday also announced the retirement of Kate Gutmann, president of international, healthcare and supply chain solutions, whose career spans more than 36 years with the company. Gutmann is retiring for “personal family reasons,” effective Sept. 1, though she will stay on as an adviser through March.
Wilfredo Ramos will assume her role, taking the title of chief international, healthcare and supply chain solutions officer. Ramos has worked for UPS for more than 20 years and currently leads the company’s Asia Pacific and brokerage businesses.
“Kate represents the very best of UPS,” Tomé said in the news release. “Throughout her career, she has championed our customers, strengthened our global capabilities and delivered exceptional results.”
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