UNITED PARCEL SERVICE: UPS HITS THE ROAD WITH TECHNOLOGY
United Parcel Service(UPS), the world’s largest package distribution company ,transports more than 4 billion parcels and documents annually. With more than 360,000 employees, 1,750 operating facilities, 2,000 daily flights 88,000 vehicles, and the world’s largest private communication system. UPS provides service in more than 200 countries .How does UPS control such a vast and extended enterprise and still fulfill its commitment to serving the needs of the global marketplace?
In 1907, there was a great need in America for private messenger and delivery services. Only a few homes had private telephones, and luggage, packages and personal messages had to be carried by hand. The U.S. postal service did not yet have the parcel post system. To help meet this need, an enterprising 19-year-old, James E (“Jim”) Casey, borrowed 8100 from a friend and established the American Messenger Company in Seattle, Washington. Despite stiff competition , the company did well, largely because of Jim Casey’s strict policies on customer courtesy, reliability, round the –clock service , and low rates. These principles, which guide UPS even today are summarized by Jim’s slogan: “ Best Service and Lowest Rates.”
Obsessed with efficiency from the beginning ,the company pioneered the concept of consolidated delivery – combining packages addressed to certain neighborhoods onto one delivery vehicle. In this way , manpower and motorized equipment could be used more efficiently. The 1930’s brought more growth. By this time UPS provided delivery services in all major west coast cities, and a foothold had been established on the other coast with a consolidated delivery service in the New York City area. Many innovations were adopted, including the first mechanical system for package sorting. During this time, accountant George D. Smith joined the firm and helped make financial cost control the corner-stone of...
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