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Ups Hp Case

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UPS and HP: Value Creation through Supply Chain Partnerships Executive Summary United Parcel Service (UPS) and Hewlett Packard (HP), both global leaders in their industries, strategically aligned themselves to capitalize on their ability to competitively provide superior services to their customers. UPS, a global distribution company and HP an information technology firm signed a contract solidifying a three year partnership in the early 2000s enabling them to capitalize on both company’s core competitive competencies already in place. UPS and HP recognized their competitive strengths and abilities in domestic and international territories as they continued to seek …show more content…

Second, both companies wanted to play an active role in understanding what domestic and international consumers demanded from UPS and HP and finally HP recognized UPS’s current systems were efficient, but were deficient in generating sustainable value. Analysis and Application Long-Term Business Growth 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) HP, an expert in the hi-tech industry understands the fiercely competitive environment where technological and innovative advancements could create turbulent

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