BPTrends ▪ September 2011
UPS Case Study
UPS Case Study: Inside Out
Dawson Wood
Business Process Manager
UPS
UPS was founded in 1907 in Seattle, Washington and is a large, pure-process company.
Essentially, everything that UPS provides is process-as-a-product. Our 406,000 employees working in 2,750 operating facilities and 62,000 retail access points must execute those processes flawlessly. The net result of our process focus is the daily movement of 15.1 million package and documents, including 2.2 million just by air and 2.3 million internationally. On an annual basis, UPS delivers 4 billion packages and documents through a fleet of approximately
100,000 package cars, vans, tractors, motorcycles and 233 UPS-owned
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Since significant change cannot occur without process creation or modification and modifications are managed through projects it seemed a logical step
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BPTrends ▪ September 2011
UPS Case Study
to combine the Process and Project centers of excellence. We change processes through projects in order to meet the needs of our customers.
Figure 3 – UPS Program and Process Center of Excellence
Approach
Inside: Have the right tools and leverage what we have, where possible. To meet our need to capture processes in a straightforward and user-friendly way, we chose the
Is/Modeler software. It captures processes as simple activities, provides for activity-based costing as an analysis tool, and is very end-user friendly for consumption purposes.
When the software’s manufacturer no longer supported the product, we made a decision to buy the source code so that we would be able to continue with their product. We are still using Is/Modeler but are evaluating Nimbus’ Control software as its eventual replacement to put us back on a supported platform with the additional benefits of data centralization (beyond our current process map library), change management/ governance, and role-specific deployment.
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BPTrends ▪ September 2011
UPS Case Study
The international brotherhood of teamsters was founded in 1907. Early on the teamster union was known for being a corrupt organization even having ties to organized crime. Union leaders and organizers were involved in illegal activities such as embezzlement, racketeering, taking bribes, assault and vandalism. This type of behavior in the organization lasted for many years prompting the government’s involvement in an attempt to expose the corruption. A committee was formed to investigate the union activities and along with its findings the Teamsters president was forced to retire and Jimmy Hoffa was elected as president even though he was as corrupt as the previous president. Teamster for a Democratic Contract and Teamsters for a Democratic
UPS had a previous attempt at entering into India. During a period of neglect, they allowed DHL to partner with Blue dart. Together, Blue dart and DHL had three times the market share of the next largest competitor. With a renewed global strategy, UPS is now trying to enter India again but faces competition. India has a lack of infrastructure which makes in hard to streamline the distribution and supply chain.There are some issues with delivering packages to India. There are second mover issues, perception of UPS, a highly regulated economy, and service to rural areas. I think UPS needs to invest in India so they create a positive presence in India. This will allow them to gain market share there
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
to make sure they are an ethical company and donating the free eyewear to the people they were intended
We need to be able to come out with solution with creativity. We need to be aggressive in what we have desire about. Do all we can do to research and try different methods. In the same time, be brief and be aggressive. Try to go straight to the top, to the decision maker, and you will be surprised about what you can get from the brief action.
The United Parcel Service is the largest package delivery company in the world. They have worked for over 108 years to gain this title. UPS.com states that the current strategy is “Create Value, Transform, and Invest to Grow”. This is a major reason that UPS currently has the competitive advantage over other shipping companies. It is also the reason that the company strives to become better at what they do every day.
What specifically spell(s) out how the organization will achieve goals through the use of specific tactics?
OUR TEAMWORK - We share a common vision, working together to reach the best possible solutions.
The way UPS started is quite the story, in 1907, James E. Casey found there was a need for a private messenger and delivery service, and so he borrowed $100 from a friend and started the American Messenger Company in Seattle, Washington. Time kept on and the company became more popular and in 1913, American Messenger Company bought their first car used for delivery, and they changed their name to Merchants Parcel Service. The company continued to grow and in 1919, they expanded their company and established a place in Oakland, CA, and they changed their name to United Parcel Service. In 1922, they expanded to Los Angeles, CA, they start changing the way they are operating. After they started up in Los Angeles, they built the first conveyor
Have a clear focus on vision and aims. Understand where the organisation/team is and wants to be.
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
DHL 31%, USPS 8%, FedEx 27%, and Amazon 3%. From these numbers Amazon is a very small player in the shipping department. Every competitor, expect DHL, are currently shipping the excess freight that Amazon cannot maintain. With Amazon 's move to acquire more of the market, these competitors need to be on the lookout because portions of their market share can be taken away. These major shipping firms only provide shipping services not offering household products like Amazon. With Amazon starting by semi-supplementing their shipping avenues, Amazon has the potential to grow even larger. The market cap numbers are not a good basis to judge market share on since FedEx and UPS have the majority of the market in the shipping industry. FedEx and UPS are the major competitors against Amazon and its new shipping department. FedEx and UPS had the most recent annual net income of $50.3 billion and $58.3 billion respectively. They represent the majority of packages delivery from individuals, businesses, and online retailers.
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.
In addition, be sure to provide inspirational vision and strong values, meaningful and challenging work, offer career opportunities, create an environment that enables people to do their best work, offer tangible rewards in both monetary and non-monetary ways and ensure work/life balance and support its importance.
Soon afterwards, UPS disbursed packages nationwide and began to increase their international services (Rodrigue, n.d.).