United Parcel Service

Topics: United Parcel Service, Supply chain management, Inventory Pages: 16 (4233 words) Published: January 26, 2013
Table of Content
1. Executive Summary 2. Introduction to UPS 3. History of UPS 4. SWOT Analysis and Porter’s five forces 5. UPS distribution network 6. Competitors of UPS 7. UPS trade direct portfolio of services 8. Importance of supply chain management 9. The way UPS interacts with its supply chain partners to improve the outcomes for customers. 10. Limitations 11. Features of the company’s operations which clearly reflect common practice in supply chain management. 12. UPS Sustainability Concept Analysis 13. Technologies and information systems used at UPS 14. Asset Recovery and Recycling Management 15. UPS inventory management system 16. Conclusion

United parcel service is a company which was in progress from 28th of August 1907 United States of America. This company consists of air-cargo, aviation technologies, Tele services and consulting. There had been 10 chief executives in the company from the launch and the current chief executive is Mr. Scott Davis.

In UPS, they operate centers that feed parcels to hubs where parcels are moved to their requested target (Spoke & Hub Model).

United Parcel Service can be identified as a very competitive organization because it competes with many other international companies like FedEx and DHL. When it comes to supply chain management of the companies, UPS has a competitive edge over companies. Supply Chain plays a vital role in UPS.

UPS has a shared IT policy, which connect multi client distribution centers where it gives a benefit to the customer in limiting the capital investment of the distribution network. Also UPS practices a asset recovery and recycling management system. UPS have always interacted with its supply chain partners to improve the outcomes of customers.

As a company UPS is having few limitations when it comes to confidence in United Parcel Service, package delivery times, unstable fuel prices, speed of package delivery etc. UPS is searching for solutions to these issues and limitations and they have already implemented new practices in order to minimize the difficulties that are faced.

UPS is applying new technologies such as Flex Global view, Tradesence, Myfreight to manage the goods accurately from source to destination. On discussing the UPS’s inventory management system, we can see that, it comprises 55% of its total cost. And further they have developed their IT system to attain their objectives in bringing down cost.

2.1 Key Facts of United Parcel Service  Founded: August 28, 1907, in Seattle, USA  Logistics Services Revenue: US$49.6 billion (2010)  Operating income: US$5.874 billion (2010)  Net income: US$3.488 billion (2010)  Employees: 400,600 (2010)  2010 Delivery Volume: 4.0 billion packages and documents  Daily Delivery Volume: 15.8 million packages and documents  Daily U.S. Air Volume: 2.3 million packages and documents  Daily International Volume: 1.9 million packages and documents  Service Area: 200+ countries and territories; every address in North America and Europe  Customers: 7.9 million daily (1.8 million pick-ups, 6.1 million delivery)  UPS.com: Average 18.5 million daily on-line tracking requests  Retail Access: The UPS Store;4647, Mail Boxes;1306, UPS Customer Centers;1000, Authorized outlets;17000, UPS Drop Boxes; 40000  Operating Facilities: 1801  Delivery Fleet: 93637 package cars, vans, tractors, motorcycles  UPS Jet Aircraft Fleet: 268(9th largest airline in the world)  Chartered Aircraft: 311  Daily Flight Segments: Domestic – 1130; International - 796  Airports Served: Domestic - 424; International - 389  Some of the Air Hubs: United States: Louisville etc, In Europe: Cologne, Germany etc. In Asia Pacific: Taipei, Taiwan; Pampanga, Philippines, Hong Kong, Singapore etc.  Supply Chain and Freight 2010 Revenue: $8.3 billion  Facilities: 1033 facilities in more than 120 countries; 38000000 square feet  UPS Freight Key services: Leading provider of less...

References: 1. www.ups.com 2. www.ups-scs.com 3. www.ups-scs.com/logistics/supplier.html 4. www.ups-scs.com/consulting/ 5. http://www.ups-scs.com/consulting/demand.html 6. http://www.weconnectinternational.org 7. http://www.baft.org 8. http://www.illinoistech.org 9. http://www.globalservicesmedia.com 10. www.investor.shareholder.com 11. http://en.wikipedia.org/wiki/United_Parcel_Service
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