United Parcel Service (a) Case

2178 WordsJun 25, 20139 Pages
United Parcel Service Case Study United Parcel Service Case Study United Parcel Service, Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in Seattle, Washington.UPS is the world 's largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions. UPS deliver packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 200 countries and territories. In 2011, UPS delivered an average of 16.3 million pieces per day worldwide - or 4.1 billion for the year. In addition, UPS’s supply chain solutions capabilities are available to clients in 220 countries and territories. UPS is a global leader in logistics, and UPS…show more content…
In 1980s U.S. Postal Service implement changes in its marketing and operating strategy which becomes a threat to UPS’s market share and with these implementations U.S. Postal service is able to reduce rated of low-weight packages. United Postal Service also increases its package traffic in Express Mail Service from 7.7 million to 40 million. FedEx is the other major competitor of UPS which is established in 1971 as an air freight business specializes in to overnight delivery. Instead of reducing costs like U.S. Postal Service, FedEx invested on technology to compete with UPS. Hire talented information technology professionals and develop software and hardwires to schedule, track, sort package and documents rapidly and accurately. These software’s and hardwares make package tracking and controlling package from pickup to delivery possible. Also one of the senior manager of FedEx describe this harmony as a “the absolute bedrock of this company’s success.” FedEx was handling about 537.000 packages and documents per day in 1986 and increased net income by 74% form previous year. On the other hand Airbone Freight Inc focused on corporate customer and expertise on morning deliveries. Airbone’s package traffic about 105.000 pieces per day. Emery Air Freight follows up Airbone with 42.000 pieces per day in air freight services. Purolator is ground package delivery and its traffic about 68.000 per day and

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