United Parcel Service (UPS) is a U.S. based company that specializes in international package delivery. The company was developed from a small messenger service which was created in Seattle in 1907 (Brewster & Dalzell, 2007). A 19-year-old man called James E. Casey, together with his friend Claude Ryan, established the messenger service with only two bicycles, a phone within a small office in a basement, and $100 which were borrowed from Ryan 's uncle. From this messenger service, the two young men laid the foundation for the growth of an international multi-billion dollar organization which is involved in the worldwide movement of goods, finances, and general information (Brewster & Dalzell, 2007). From its inception, UPS has grown to be the world 's biggest parcel delivery company. It is estimated that the Atlanta-based company delivers approximately three billion items in more than two hundred countries and territories per annum. The company owns an enormous fleet of vehicles, approximately around 88,000 in total. Also, UPS owns and operates the 9th largest airline business in North America. In regards to this, it has about 600 aircraft which are company-owned and chartered (Brewster & Dalzell, 2007). The global penetration of UPS has been observed to be gradually increasing raising its market share in many countries. However, the company’s U.S. operations have made the most significant impact on the overall business transactions. It has employed a door-to-door delivery
United Parcel Service, a logistics company has established itself through its strong corporate culture, continuous ability to innovate, and its far-reaching global network. The company has maintained a competitive advantage over the years by implementing continuous growth strategies—the first was geographic expansion, next the early adaptation of electronic tracking technologies, and then came a series of acquisitions. Although UPS is financially strong and is able to maintain its role in the courier and delivery industry—it is vital that UPS continue to act strategically as to strive for long-term success. UPS is heavily dependent on the U.S. economy and it is important that it find greater and more profitable ventures
During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management
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
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
UPS still relies on its chocolate-colored trucks, but United Parcel Service (UPS) aims to be more than a plain-vanilla delivery business. Seattle teens, Jim Casey and Claude Ryan started American Messenger Company, a phone message service, in 1907. They were soon making small-parcel deliveries for local department stores and in 1913 changed the company's name to Merchants Parcel Delivery. Service expanded outside of Seattle in 1919 when Merchants Parcel bought Oakland, California-based Motor Parcel Delivery. By 1930, the company, which had been renamed United Parcel Service, served residents in New York City (its headquarters from 1930 to 1975); Newark, New Jersey; and Greenwich, Connecticut.
Studying FedEx, UPS and their competitive relationship in the decade from mid - 80's to mid - 90's gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit" and its core business is the two-day ground delivery. However, by 1981, the two companies started to have a strong sense
United Parcel Service (UPS) was founded in 1907 as a messenger company. It has grown into a multi-billion dollar corporation. Today UPS is a global company and one of the most admired and recognized brands in the world. UPS has become the largest delivery package company and leading provider of specialized transportation and logistics services in the world.
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), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service.
UPS has been in the package delivery business for 95 years, providing services to businesses and consumers worldwide in more than 200 countries. In 1994, UPS began to investigate the potential of e-commerce and started an internal group focused on enabling e-commerce. UPS redefined its core business and found ways to change its structure and processes, forming new businesses to take advantage of new opportunities. UPS was interested in finding ways to leverage their extensive infrastructure and expertise in basic transportation of goods, services, and
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management,
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.
United Parcel Service (UPS) founded in 1907 is the largest transportation company and the largest air freight carrier in the world. In 1987 due to rapidly changing external environment UPS faced serious challenges to its long-established policies of on-the-job training and promotion from within. With the increase in competition UPS realized that it is lagging in computerization and it thought of seeking technical expertise which it could not get from within. The concerns they had are how to hire new talent, how to assimilate, and to what extent new people would conform to UPS culture.
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