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UPS plans buying spree
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June 12, 2000: 5:49 a.m. ET
Report: Parcel giant aims to boost supply-chain management business
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LONDON (CNNfn) - United Parcel Service is in talks to acquire two distribution firms in Asia and Latin America, according to a report published Monday.
However, the world's largest package delivery company, best known for its boxy brown delivery vans, is looking to expand beyond its core parcels business with the $5.5 billion proceeds from last year's initial public offering.
It has hitherto used the IPO proceeds to pay for stock repurchases, but is expected to announce "a flurry of deals" over the next year, according to the Wall Street Journal. The first pair may be announced this week, said the report.
The Journal, citing sources familiar with the situation, did not identify the acquisition targets, but said that Atlanta-based UPS was focusing on building up its business in delivering spare parts and components to the manufacturing sector.
So-called "just-in-time" delivery has become a key component in increasing productivity in industries such as the auto making and computer hardware, with parts ordered from suppliers when they are needed rather than bought far in advance, reducing inventory costs.
 UPS Logistics, which provides services such as managing other corporate supply chains, was the fastest-growing part of UPS in the first quarter, posting a five-fold rise in operating earnings.
The unit has signed contracts this year expected to generate revenue of more than $1 billion over the next seven years.
UPS shares closed down 15/16 at 59-5/16 on Friday. 
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UPS
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