UPS: A Leading-Edge Logistics Solution

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JAMES COOK UNIVERSITY SINGAPORE
BX2062 OPERATION MANAGEMENT
M. SADANAND VARMA

CASE STUDY
UPS:
A Leading-Edge Logistics Solution

Spring semester 2012
Submission date: Monday 15th of May 2012

TABLE OF CONTENTS

1 – EXECUTIVE SUMMARY.........................................................................................Page 03

2 – UPS’s background…..........................................................................................Page 04

3 – recent history and evolution of logistics..................................Page 04
A – milestones of logistics maturity...........................................Page 04
B – logistics model prior to 2011.......................................................Page 05

4 – THE TRANSITION AT UPS ....................................................................................Page 06
A – Identify the key drivers for logistic
transformation in the company......................................................Page 06
B – PROCESS UNDERTAKEN ..........................................................................Page 07
C – KEY MILESTONES OF THE TRANSFORMATION..............................Page 08
D – IMPACT ON BUSINESS MODEL AND STRATEGY AT UPS...............Page 08 E – FINANCIAL BENEFITS OF THE TRANSITION TO
BOTH UPS AND CUSTOMERS.........................................................................Page 09

5 – SUSTAINABLE LOGISTICS AT UPS.....................................................................Page 10 A – LOGISTICS IS SUSTAINABLE..................................................................Page 10

B – THE SUSTAINABLE LOGISTICS DIRECTION OF
THE COMPANY...................................................................................................Page 12

6 – CONCLUSION............................................................................................................Page 13

7 – APPENDIXes..............................................................................................................Page 14

8 – References ...........................................................................................................Page 16

1 – EXECUTIVE SUMMARY

United Parcel Service (UPS) is an international shipping company, UPS appears in Seattle in 1907 by the entrepreneur Jim Casey. They start by delivering with bicycles, a phone and very simple office. Few years after Casey become multibillionaire and the company is now employing 400 000 people all around the world and 8.8 millions clients everyday. Logistic providers has known lot of changes due to the consumer behavior’s evolution and obliged the delivery professionals to adapt the service to new environment thanks to the technological progress. The globalization and the liberalization of the markets enable the opening of the entire economies and changes UPS task from simple to difficult, however UPS are managing very well with a real logistic structure.

Then, the case focuses on the transition that has occurred and how it affected the company. Indeed, UPS pushed by the willing to adapt to and to grow in the global market environment, successively invested on its capabilities, IT and healthcare and facilities with developing countries (South America and South- East Asia). Moreover, Ups also wanted to focus on the costumer’s needs and create value for their business costumers. Thus, they have developed a complete service activity for the costumer (electronic monitoring, personalized logistic process). These improvements help them to increase their competitive advantage in the market.

Finally, the case study treats on the crucial preoccupation for companies nowadays: the sustainability Ups have developed sustainable solutions for the future (adapted to their offer) and contribute to sustainable practices. We saw in this part, how logistic can be sustainable. We explained the different changes that can be operated in...
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