Total Quality Management in UPS

The key success to UPS was efficiency. Every route is time down to the traffic light. Each vehicle was engineered to exacting specifications. The drivers endured a daily routine calibrated down to the minute. This demand for machinelike precision met with resistance by UPS heavily unionized labor force.

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

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

As the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services, UPS, continues to develop the frontiers of logistics, supply chain management and e-commerce combing the flow of goods, information and funds. This past October UPS Logistics Solutions was voted #1 logistics provider by Logistics Solutions. When conducting an industry analysis, it is important to explain the competitive forces model (CFM) of UPS. The first component of competitive forces model are the customers. Their customers consist of business organizations, and the general public. The second CFM component is competition. UPS have a lot of competition in its field, but the most competitive company is FedEx. Since FedEx provides the same services as UPS; both are neck to neck in competition, but UPS has an established history, and because of that, they have more loyal customers, and they are worldly known. They have established them-selves as the elite, with their commercial on television. Showing how they can deliver from one place to another with same day delivery and

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)

The evolution of the express mail industry had become a quick on-time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies could deliver on these guaranteed promises 96-99% of the time. But, delivery services were only a portion of the services being offered to their customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the route of their package, and assisted in billing using both via carrier provided software or the Internet.

Volunteers received an email or a mobile phone text message as soon as their paper mail has been opened, scanned and sent as an electronic image to a secure digital mailbox, to which only the intended recipient has access. The staff is bound by strict confidentiality obligations. The service had 100,000 users in 2007 and has more than 300,000 users in 2011(Post&Parcel/Itella Group, 2011). Similarly, the Swiss Post from Switzerland lets its customers choose if they want their mail delivered at home in hard copy or scanned and sent to their preferred Internet connected device. Swiss Post also allows its customers to tell them if they would rather not receive items such as junk mail. And finally, the New Zealand Post has signed a licensing deal with digital postal mail provider Zumbox. The company’s software, which is said to be the world’s first platform for digital postal mail, enables the creation of electronic facsimiles of paper mail that are delivered online to users, based on street addresses (Jackson, 2011).

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

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

UPS offers discounted stock option plans for front-line staff, various incentive programs for management, and the long-term incentive programs for team members (Soupata, 2005). Such stock and incentive programs are what motivates the workforce to increase performance outputs in a manner that elevate the firm. Team members develop strong work ethics, are more engaged, and increase performance efficiency that produce higher returns to shareowners. UPS relies on building trusted, committed relationships between management and its team members that create an atmosphere of trust. Such workplace culture can become contagious and inviting to newcomers that equate to organizational success.

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.”

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,

 *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.

UPS is a global leader in logistics, offering a broad range of supply chain solutions including transporting packages and freight, facilitating international trade, and deploying advanced technology to more efficiently