I N T E R A C T I V E S E S S I O N : T E C H N O LO GY
UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY
United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude
Ryan—two teenagers from Seattle with two bicycles and one phone—promised the “best service and lowest rates.” UPS has used this formula successfully for more than 100 years to become the world’s largest ground and air package delivery company. It’s a global enterprise with over 408,000 employees,
96,000 vehicles, and the world’s ninth largest airline.
Today, UPS delivers more than 15 million packages and documents each day in the United States and more than 200 other countries and territories.
The firm has been able to
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In June 2009, UPS launched a new Web-based
Post-Sales Order Management System (OMS) that manages global service orders and inventory for critical parts fulfillment. The system enables hightech electronics, aerospace, medical equipment, and other companies anywhere in the world that ship critical parts to quickly assess their critical parts inventory, determine the most optimal routing strategy to meet customer needs, place orders online, and track parts from the warehouse to the end user.
An automated e-mail or fax feature keeps customers informed of each shipping milestone and can provide notification of any changes to flight schedules for commercial airlines carrying their parts. Once orders
Chapter 1 Information Systems in Global Business Today
are complete, companies can print documents such as labels and bills of lading in multiple languages.
UPS is now leveraging its decades of expertise managing its own global delivery network to manage logistics and supply chain activities for other companies. It created a UPS Supply Chain Solutions division that provides a complete bundle of standardized services to subscribing companies at a fraction of what it would cost to build their own systems and infrastructure. These services include supply chain design and management, freight forwarding, customs brokerage, mail services, multimodal
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
According to a Case Study-United States Postal Service (Jan 06, 2010), retrieved from: http://www.slideshare.net/bakeursilly/usps; since 1175 when Benjamin Franklin was appointed as the first postmaster general of the United States, the agency known as the United States Postal Service (USPS) has grown to become an institution that delivers about half of the world’s mail in snow, rain, and the dark of the night. Employing about 656,000 workers and 218,684 vehicles, 36,496 total retail and delivery facilities nationwide, 599 processing facilities, 584 million pieces is the average volume per day, and a total work hour of 1,258,025 per year delivering over 200 billion items per year via air and highway.
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.
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
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.
In today’s environment, it is extremely essential for retailers to embrace technology in the course of their businesses. This is mainly because a significant number of consumers can be attracted and accessed through technological measures. It is essential to appreciate the fact that data, infrastructure and e-commerce software form the basis of United Parcel Service’s technological superiority. All these tools play a pivotal role in supporting the company’s e-commerce strategy and the company’s business strategy as a whole. One of the key attributes of United Parcel Service is its commitment to investing in researching emerging technologies. This gives it an exceptionally competitive advantage. United Parcel Service (UPS) consistently seeks to embrace technologies that that enhance the company’s efficiency (Russell Baker, 2008). The company’s commitment to technological advancement made the company appear in InternetWeek’s top 100 companies in 2004 (Russell Baker, 2008). On the other hand, InfoWorld ranked the company as the seventh company with the most significant contribution to technological infrastructure.
"Consensus building" and was focused on efficiency and execution, emphasis on customer service. It believed in continuous improvement of company. UPS has fostered strategic focus around operational excellence. It is renowned for its efficient delivery service.
Today, the world headquarters for UPS is currently located in Atlanta, Ga. UPS transport for and delivers to more than 9.4 million customers in 220 countries daily (UPS, 2014). In 2013, the company delivered over 4.3 billion packages and documents around the world (UPS, 2014). As the package distribution industry become more competitive, UPS uses cutting-edge technology, access to global resources, and an integrated network of physical, technological, and human assets to maintain their competitive advantage over other delivery companies (Company History). This competitive advantage helps UPS continue to receive new and repeat customers and help grow their business.