Financial benefit of the transition to UPS
Technology is a major part of these changes and UPS spent huge amount of money on technological upgrades each year (Ross et al., 2002). UPS always find new and improved technology which the company is able to maintain competitive in their pricing (Clinton, 2008). Fuel is a major expense for the company, their operations also helps UPS reduce costs. As they always put efforts to increase their achievement, UPS became more efficient and developed company compare to before by the UPS transition. As below chart shows Financial Data of UPS from 2007 to 2012. Million of us $
| Total revenue
| Net profits
In terms of company financial performance, this chart indicates that the total revenue from 2007 to 2012 is in a strong financial position. UPS has been able to make strategic investments which have maximized profits, as well as increased share earnings for shareholders. In this chart shows the net profits in 2008 prove that it has increased sharply from year 2007. However, like so many other global firms, UPS did suffer as a result of the 2008/2009 global financial crisis (GFC). Even year 2009, the revenue went down, It has reached to 53.10 Million in 2010. The financial result, UPS is generally maximizing profits. In my point of view, there are several reasons that UPS could gain financial benefits from its transition. First benefit is UPS use advanced technologies which make the company more efficient and it helps to reduce more employment resources and the major fuel cost as well. Another benefit is cost perspective. For example, UPS reduced warehousing expenditures as well as extracting savings from streamlined supply chain overall. Moreover, as UPS is a logistics service provider, UPS will benefits its customers by providing services. I will also benefits heir financial positions such as...
Please join StudyMode to read the full document