Essay on Fedex V. Ups

4614 Words May 7th, 2013 19 Pages
The Success of FedEx vs. United Parcel Service (UPS)

Executive Summary

In today’s ever advancing world, shipping services are an essential part of our everyday lives. The two largest companies’ in the shipping industry today are Federal Express Corporation (FedEx) and the United Parcel Service (UPS). FedEx is an international company that believes in quality customer service. With its consistently high quality and innovative services, FedEx has achieved a relatively high market share in the global package delivery market. FedEx is currently the global leader in the express package delivery market, and it offers delivery services in over 220 countries and territories. The biggest competition that FedEx faces today is UPS. UPS
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United Parcel Service (UPS)

Introduction
Transporting packaged commodities from one place to another is an operation that occurs daily. Millions of shipments ranging in different sizes, weights, and shapes are being delivered manually and/or mechanically. Different modes of transportation such as truck, rail, air, and sea have been employed by carrier companies to fulfill people and companies' need. Service commitments include rapid and efficient movement of shipments, reliable and cost-effective services. However, with the increasing number of goods that are shipped and handled, the logistical networks are rather complex.
Many delivery services have adapted hub-and-spoke system in the complex distribution network covering a global, national, and regional level. The hub-and-spoke system generally consists of hubs as well as local facilities. Hubs are major sorting facilities that act as an exchange point for packages traveling long distances. Local facilities play a role as a bridge point to receive or deliver packages according to their geographic area. The two are tied together to achieve a greater flexibility within the transportation system. In each hub, the package often travels through the sorting system in one of the three ways, depending on how the packages are categorized. Packages can be classified as a small, regular or an irregular shipping unit. Smalls are defined as a volume less than 13,000 cm (800 in ), and a longest

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