United Parcel Service ( Ups )

UPS's primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended its service portfolio

The United Parcel Service (UPS) adopted a business strategy of mostly hiring part-time workers – attractive to young workers who were given work at off-time shifts earning union-negotiated wages and benefits. However, part-time work presented almost no opportunity for advancement. By 1996, this part-time UPS’s workforce grew to 182,000 part-time employees, working approximately 26-28 hours/week. The Teamster Union, handling the bargaining negotiations for UPS worker-members, researched the rights of the part-time worker and analyzed the disparities in salaries, retirement fund benefits and limited opportunities for full-time hiring between the part-time and full-time workers. The Teamster Union members’ called for strike after presenting this picture of UPS had exploited part-time workers to cut costs. This 1997 strike against UPS was as successful as it was disruptive. The strike was disruptive to the businesses across the country because it upset the shipping patterns. Yet, the strikers had gained large general public support over the company. The strike was led Teamsters president Ron Carey successfully because of its strategic execution. Namely, Carey made good use of media and generated public sentiment to pressure UPS to settle in his favor. From the first, the Teamsters had the high ground given the nature of the dispute and the fact that the public was also concerned about the issue of part-time work and the way companies were using part-time workers to avoid paying

Researching the market landscapes and competitive environment was difficult but UPS has reports that they have to do yearly in which I found very helpful with this part of my paper. UPS’s main competitors in the United States are FedEx and the United States Postal Service. Some of their competitive advantages are in the departments involved in freight and ground shipping. FedEx is known for next-day air service deliveries and USPS is residential mail and small

Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery

Operation leaders are tasked to identify the critical success factors and core competencies of their business functions and objectives in order to generate sustainable long-term growth. Critical success factors are actions essential for a business to reach its objectives. (Heizer & Render, p. 42, 2009). UPS’s key success factors are its efficiencies in scheduling, integrating the stream of goods, its ability to provide multiple solutions such as “harmonizing the flow of goods, information and funds across customer supply chains” while enabling consumers to “evolve in new and necessary ways” (Lewis, Forquer & Quinter, pg. 2, 2007). UPS’s environmental factors include their supply chain design and planning, competitors in logistics such as FedEx, distribution services, diversification in the global environment and focusing on differentiation. UPS is also an expert in its industry because the strategy is globally focused and is centered on diversification of its systems (See Appendix1.1)

UPS system is based on traditional ABC in that it takes detailed functional cost and maps it to the products based on the activities that the products drive (ups.com). UPS is a cross functional discipline, in that it identifies activities within a function or process, measures the cost associated with the activity and then assigns the cost to a product. UPS responded to technology, the market and changing times by developing new business strategies to focus on customer needs. The new change in the business environment demands the organizations to gather the relevant data and information about the customers, costs, procedures, services, products and activities (Danish, Hasan & Abid, 2013). They needed a better understanding of specific segments of their business. UPS operations are extremely complex with a wide variety of service options, operating conditions and support activities (ups.com). UPS’s ABC system is unique in that it leverages our database of work measurement and package movement detail

The United Parcel Services share of the marketplace commands attention: -400,000 (+) employees -$51.5 billion earned 2008 -14% profit margin -90,000 vehicles and 268 jets -Operations in over 200 countries (Thomas, Linder, & Dutra, 2006). Organization has allowed UPS to operate in financial, retail, technology and nonprofit markets as well as logistics. Management Leads with the philosophy of talent cultivation through long-term employment relationships, developing committed, aligned and experienced partners. 54% of full-time drivers started as part-time. 68% of management was promoted from within. 78% of Vice-presidents once held non-management positions with UPS (Thomas et al., 2006). Controlling within UPS develops around the standard of constructive dissatisfaction, the belief that all process can be improved on and all parameters may be extended. Constructive dissatisfaction, a culture of ownership along with continual training and market awareness keep UPS a pioneer. External Factors Globalization has empowered UPS to update their strategy to synchronizing global commerce: of goods, information and funds (Thomas et al., 2006). Once a local delivery service, now UPS is recognized globally, embracing diversity with owners and customers in from every nation. Concerned with environmental impact of big business, UPS has cut carbon emissions, from airliners, 22% since 1990, and plans to cut

UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management,

UPS is a global package delivery business that specializes in not only managing the movement of goods, but the information and funds that moves with those goods in more than 200 countries and territories worldwide. UPS’s target market is primarily U.S. companies that ship business to business via ground delivery and whose delivery time is not

United Parcel Service (UPS) was founded in 1907 as a messenger company, and has built upon that core service offering for the last 105 years. The company describes its business as "enabling commerce around the globe" (UPS.com, 2012). They are the world's largest package delivery company, managing the flow of goods, funds and information. UPS operates in more than 200 countries around the globe.

This research paper is written to explain the importance of globalization and supply chain management of the United Parcel Service (UPS). In this document, the reader will obtain the history and development of UPS as well as the supply chain strategy and strategic network optimization developed for their business. In addition, this report will also discuss the distribution network of UPS and how it operates to deliver packages to their destinations around the

Since 2013, UPS has updated their mission statement and core goals. Although the company addressed aspects of employee ownership, long-term growth, and social responsibility, the firm has since expanded on their commitment to sustainability and their importance on a caring corporate culture for employees and shareholders. The proposed vision statement emphasizes UPS’s strategic position to create a competitive advantage through the globalization of trade and the development of

 *New Products,ServicesandBusiness Models- The information systems of UPS created new way on how to offer delivery service. It has transformed the way the company gathers information, creating routes etc.

Trends and opportunities of the parcel service industry include globalization, e-commerce, and supply-chain management. Internet logistics was FedEx and UPS’s fastest growing business. The internet enabled customers to link directly to retailers and their manufacturers. In 2001, parcel carriers served almost all of the online market. They were able to provide information on packages to customers through tracking systems on the web. This allowed customers to plan ahead and decrease delays in deliveries. It also allowed for faster transactions and lower communication costs. Parcel companies created partnerships with large Internet retailers. These partnerships allowed parcel service companies to expand its overall delivery volume. Parcel companies improved tracking by implementing several technological innovations. These included “laser scanners and bar codes, state of the art software programs, satellite and cell phone communication equipment, electronic information interchanges, and the Internet.”

FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)