...(Pockell, 2009). James Casey at age 19 years old founded what is known today as United Parcel Service (UPS). Casey, along with three of his friends joined him in his mission and another invested $100.00 into the fund in Seattle, Washington to develop American Messenger Company. This would develop over the years into the world’s largest shipping company. “The Men in Brown” as they are sometime referred to received their color 1918 from a friend and the firm grew from there. In about 1919 “United” was a word that made the customers know they were apart of each cities growth “Parcel” let you know the kind of business and “Service” let the customers know that was what they were about, now known as “United Parcel Service”, UPS. The next 100 years or so have seen unbelievable growth and development of the company and its management. There is no limit to the technology needed to move the packages nor the company and the leaders of the company. There is no limit to the future growth of the company. After interviewing a 25 year driver for UPS he explained to me that he believes that the care, training, and technology that he has gained continues to make his job easier. The work load over the years has increased but the Company continues to develop and design new equipment to make the delivery easier and faster. C. Edwards my UPS interviewee also believes that the Union keeps his pay and benefits moving up. He noted several times during our conversation that he does not miss the funds...
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...Systems (TMS) have changed the way companies do business. Handling transportation planning, TMS transformed the way United Parcel Service (UPS) executes their delivery business. Enabling what once was a small business by providing assistance in managing the shipping and receiving of retailers, manufacturers and suppliers goods, United Parcel Service (UPS) is now an international servicing company. The conjoined efforts of UPS and its TMS have allowed brick-and-mortar businesses to focus on core competencies and customer service by eliminating the shipping and receiving responsibility. In this composition basic uses of the TMS within UPS will be discussed. Addressing the factors that influenced the need for a developed transportation system, this article will cover the influences involved in the growth of a TMS system within companies such as UPS. IDENTIFIYING TRANSPORTATION MANAGEMENT SYSTEMS Transportation management system is a subset of supply chain management (SCM) software focused on transportation logistics. Connecting cities, manufactures, retailers and consumers, this system consolidates shipping and plans destination or travel routes. TMS was introduced to the supply chain process in the 1980s (McCrea, 2012). The sole intention of the system creation is to make the distribution of products from manufacturers to consumers efficient and affordable. This system is available to companies such as United Parcel Service (UPS) in many forms; standalone software packages...
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...Systems (TMS) have changed the way companies do business. Handling transportation planning, TMS transformed the way United Parcel Service (UPS) executes their delivery business. Enabling what once was a small business by providing assistance in managing the shipping and receiving of retailers, manufacturers and suppliers goods, United Parcel Service (UPS) is now an international servicing company. The conjoined efforts of UPS and its TMS have allowed brick-and-mortar businesses to focus on core competencies and customer service by eliminating the shipping and receiving responsibility. In this composition basic uses of the TMS within UPS will be discussed. Addressing the factors that influenced the need for a developed transportation system, this article will cover the influences involved in the growth of a TMS system within companies such as UPS. IDENTIFIYING TRANSPORTATION MANAGEMENT SYSTEMS Transportation management system is a subset of supply chain management (SCM) software focused on transportation logistics. Connecting cities, manufactures, retailers and consumers, this system consolidates shipping and plans destination or travel routes. TMS was introduced to the supply chain process in the 1980s (McCrea, 2012). The sole intention of the system creation is to make the distribution of products from manufacturers to consumers efficient and affordable. This system is available to companies such as United Parcel Service (UPS) in many forms; standalone software packages...
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...United Parcel Service: Moving at the Speed of Business 1. What is UPS's business model? Does it move at the "speed of business"? Explain. 2. Who is UPS's target market? What service(s) is UPS providing? 3. Who are UPS's competitors? What are the limits of their business models? UPS has been rated "America's most admired mail, package and freight delivery company" for sixteen consecutive years by surveys conducted by Fortune magazine, and in 1998 was named "world's most admired" in the same category. United Parcel Service (UPS) is one of America's ten largest airlines. It is the largest private user of cellular technology on earth. Its drivers' handheld computers make a million wireless calls a day. UPS also handles about six percent of the nation's daily gross domestic product. The $24 billion company (see Table 1 for historical financial data) has 330,000 employees, delivering 12 million packages a day to seven million customers. Company revenues for the quarter ending March 31, 1999, totaled $6.33 billion, up 8% compared to the $5.86 billion reported for the same period in 1998. Net income for the 1st quarter rose to $499 million compared to the $352 million reported for the same period in 1998, a 42% jump. As the world's largest package distribution company, UPS transports more than 3 billion parcels and documents annually (See Table 2 for industry data). UPS operates more than 500 aircraft, 157,000 vehicles and 2,400 package and sorting centers to provide service...
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...United Parcel Service: Moving at the Speed of Business 1. What is UPS's business model? Does it move at the "speed of business"? Explain. 2. Who is UPS's target market? What service(s) is UPS providing? 3. Who are UPS's competitors? What are the limits of their business models? UPS has been rated "America's most admired mail, package and freight delivery company" for sixteen consecutive years by surveys conducted by Fortune magazine, and in 1998 was named "world's most admired" in the same category. United Parcel Service (UPS) is one of America's ten largest airlines. It is the largest private user of cellular technology on earth. Its drivers' handheld computers make a million wireless calls a day. UPS also handles about six percent of the nation's daily gross domestic product. The $24 billion company (see Table 1 for historical financial data) has 330,000 employees, delivering 12 million packages a day to seven million customers. Company revenues for the quarter ending March 31, 1999, totaled $6.33 billion, up 8% compared to the $5.86 billion reported for the same period in 1998. Net income for the 1st quarter rose to $499 million compared to the $352 million reported for the same period in 1998, a 42% jump. As the world's largest package distribution company, UPS transports more than 3 billion parcels and documents annually (See Table 2 for industry data). UPS operates more than 500 aircraft, 157,000 vehicles and 2,400 package and sorting centers to provide service...
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...packaging required as well as the materials handling equipment. Customer service goals influence the type and quality of carrier and carrier service selected by the seller. 12.2 An individual country’s topology, economy, infrastructure and other macro environmental factors influence a country’s transportation system. Because an increasing number of shipments are being transported between multiple countries, knowledge of a country’s infrastructure can help avert potential transportation problems. For example, some countries may have few airports with 10,000-foot runways, which might reduce the feasibility of moving shipments via air. 12.5 Less-than-truckload (LTL) shipments range from about 150 – 10,000 pounds; truckload (TL) carriers focus on shipments of greater than 10,000 pounds although the exact weight depends on the product. LTL shipments are often too big to handle manually, do not fill a truck and LTL carriers transport shipments of many customers simultaneously. Whereas LTL shipments are routed through terminals, TL shipments tend to move directly from the shipper’s location to the consignee’s location. 12.6 Speed limits and hours-of-service (HOS) rules have long been justified on the basis of safety concerns. However, speed limits influence the amount of territory that can be covered by a trucker during a particular time period (a lower speed limit means less mileage can be covered). Hours-of-service rules limit the number of hours that can be driven in a 24-hour period...
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...UPS and Its Faster Service: From a One Man Service to a High Technology Provider Lorraine Alvarez Florida Tech University Abstract This paper describes the transformation of the United Parcel Service (UPS) that began as a very small delivery service and evolved into a multimillion dollar company that provides delivery services worldwide. It details how UPS purchased and utilized new technology to improve their performance and provide the best possible service to its customers. It shows the strategic, technical and organizational issues that UPS had to address and how they faced both challenges and opportunities within their logistics and capital business models. History of UPS UPS has increased its speed and efficiency of delivering packages using information technology. UPS began operations in 1907 on the West coast of the U.S. It expanded its business in the 1930’s to include New York and then internationally in the 1970’s. Today, UPS will deliver over 14 million packages all over the world using around 70,000 drivers that are wirelessly connected to the UPS main databases. In the year 1907, America needed delivery service and so Jim Casey borrowed $100 from a friend to begin the American Messenger Company in Seattle WA. In 1913, the company purchased its first Model T, made changes to its delivery methods and changed its name to Merchants Parcel Delivery. In 1924, after expanding outside of the Washington area, they built their first conveyor...
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...PROGRAMME: BHM, LEVEL 400 LECTURER: DR. MARGARET CRABBE 1. What kind of information does the Web site provide for individuals, small businesses and large businesses? List these services and write several paragraphs describing one of them, such as UPS Trade Direct or Automated Shipment Processing. Explain how you or your business would benefit form it. Answer United Parcel Service (UPS) has a wide variety of information and services for its various clients across the globe. Individuals can tap into a network of resources that helps them manage their businesses more easily, from packing and shipping, to tracking and billing such as: * Reliable delivery services without any worries on the part of the individual * * Provision of information on how to prepare a shipment from the Packaging Advisor and then create shipments online. * Invoices and pay bills are made available for viewing and billing reports are built to monitor shipping expenses, and to find out instantly how much products have been shipped all from the UPS Billing Center. * Better staff management techniques are also provided r when anticipating high-volume shipping and receiving with UPS Tracking. * People are more able to focus on their priorities through the good customer services provided. Small businesses are powered through the high level of efficiency received on their logistics. They are provided with technologies that create time saving, allowing to build shortcuts...
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...vs. United Parcel Service (UPS) Executive Summary In today’s ever advancing world, shipping services are an essential part of our everyday lives. The two largest companies’ in the shipping industry today are Federal Express Corporation (FedEx) and the United Parcel Service (UPS). FedEx is an international company that believes in quality customer service. With its consistently high quality and innovative services, FedEx has achieved a relatively high market share in the global package delivery market. FedEx is currently the global leader in the express package delivery market, and it offers delivery services in over 220 countries and territories. The biggest competition that FedEx faces today is UPS. UPS is the largest package delivery company in the world, and it offers services in over 215 countries and territories. With its consistently low priced shipping offerings, UPS has earned a reputation as the low-priced market leader. Attaining a competitive advantage in the package delivery market is a challenging task, but UPS and FedEx have found innovative ways to accomplish this objective. Although these companies essentially offer the same delivery options, each of them has carved out its own market niche within the package delivery market. Table of Contents Introduction 4 Federal Express (FedEx) 6 United Parcel Service (UPS) 6 COMPETITIVE ANALYSIS 7 United Parcel Service (UPS) 8 Threat of Substitute Product 10 Delivery Confirmation Service Vs...
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...9-306-002 REV: JUNE 19, 2006 DAVID A. GARVIN LYNNE C. LEVESQUE Strategic Planning at United Parcel Service We fully recognize that it is not possible to develop a true strategic plan more than a few years out and that business plans should have an even shorter horizon. But we are convinced that it is possible and wise, indeed necessary, to develop a set of very long-range scenarios that can form the foundation for our future strategic plans. — Michael (Mike) J. Eskew, Chairman and Chief Executive Officer, United Parcel Service (UPS) As Mike Eskew walked through the long, open atrium of UPS’s corporate headquarters late in March 2005, he thought about his upcoming lunch meeting with Vice President of Corporate Strategy Vern Higberg. Higberg was preparing a presentation for the senior management strategy committee, the Strategy Advisory Group, on improvements to the strategic-planning process. While the company had made major progress in planning for the future over the past 10 years, Eskew had charged Higberg and his colleagues with developing recommendations for moving forward, citing one of his predecessors, who had said, “The future of our company will be no better or worse than the quality of planning we do to prepare for it.” Company Background History In 1907, 19-year-old Jim Casey borrowed $100 from friends to start the small company that eventually became UPS. From its humble origins delivering messages for the city of Seattle, Washington, UPS...
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...United Parcel Service By Michael Vida Carmela Miele Salvatore Samà 1 of 34 St. John’s University Undergraduate Student Managed Investment Fund United Parcel Service, Inc. (UPS) Type of Report: Recommendation & Analysis Recommendation: $58.40 Date: April 14, 2003 Limit order to buy 175 shares at $55.00 Market order to buy 175 shares Industry: Transportation - Air Delivery, Freight & Parcel Services Analysts: Michael Vida - mvida24@hotmail.com Carmela Miele – carmela37@aol.com Salvatore Samà – samasalvatore@yahoo.it Share Data Price - $58.40 Date – April 14, 2003 Target Price - $60.35 52 Week Price Range - $53.00 - $67.10 Market Capitalization - $ 64.644 Billion Shares Outstanding – 1.12 Billion Revenue - $31.272 Billion Proj. LT EPS Growth Rate: 14% ROE 2002: 26.10% Earnings Per Share and Projections FY Ending Full Year 12/01A 2.13 12/02A 2.84 12/03E 2.29 12/04E 2.67 12/05E 2.94 Fundamentals P/E (12/02): 20.2 P/E (12/03E): 26.46 Book Value/Share: $11.09 Price/Book Value: 5.167 Dividend Yield: 1.46% Consensus Est. Avg=2.33 (yahoo) Avg=2.67 (yahoo) N/A 2 of 34 Executive Summary We are recommending the purchase of 350 shares of UPS, currently trading on the NYSE at $57.30. United Parcel Services has one of the most extensive global ground and air networks for transportation. The largest transportation company, UPS, has been outperforming S&P by 30%. UPS is not solely a transportation company; they also act as consultants for the logistics...
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...Development • Narrow your focus – Allows you to focus on your strengths • Reach more customers more effectively – Can ensure delivery times – can help a company run leaner Types of 3PL Providers • – – – – • Transportation Based Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: FedEx Logistics, UPS Logistics Financial Based – Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. – Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston Types of 3PL Providers • Warehouse/Distribution Based – Many have former warehouse and/or distribution experience. – Examples: Exel, Caterpillar Logistics, IBM • Forwarder Based – Very independent middlemen with forwarder roles. – Non-asset owners that provide a wide range of logistics services. – Examples: AEI Types of 3PL Providers • Information Based – Significant growth and development in this category of Internet-based, business-to-business, electronic markets for transportation and logistics service Levels of Outsourcing • Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company. • Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts...
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...option will be evaluated via three criteria based on three simple questions as follows: Is it big? Is it us? Is it time? After this evaluation is complete there will be one strategic option selected that best meets the selection criteria in totality. FedEx Corporation: The Competition Competition in the transportation market is intense both domestically and globally and is the heart of every organizations strategy within this industry. Freight and courier services are at a high demand throughout the world due to growing distribution channels, technology, and a marked increase in demand. Market volume and value are projected to achieve growth of over thirty three percent by 2017 and will further raise the level of competition, rivalry, and fragmentation in this industry (Marketline, 2013, p. 27). FDX, an industry leader, maintains a pointed focus in providing comprehensive services within this growing industry and faces competition from many sources that are traditional, potential and oblique in...
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...transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. * FedEx Mission Statement Excerpt * We serve the evolving distribution, logistics, and commerce needs of our customer worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. * UPS Mission Statement * FedEx History * Business model conceived by Fred Smith in an undergraduate term paper. * Invests $4 million of his own capital and raises and addition $91 million. * Launches in 1971 * By 2003 * 50,000 Delivery Trucks * 625 Cargo Planes * 217,000 Employees * Handles 2 billion packages * $22.5 Billion with 37% margins * UPS History * Started in 1907 by 19 year-old Jim Casey then called American Messenger Company. * Became Unite Parcel Service of America in 1929 and began shipping packages on commercial airliners. * By 2003 * 88,000 Ground Trucks * 583 Planes * 360,000 Employees * $2.9 Billion in profits on $33.4 Billion * The Competition * Price competition * Operational Reengineering * Information Technology * Service Expansion * Logistic Services * The...
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...UPS: Strategic Analysis United Parcel Service, Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company and the premier provider of global supply chain management solutions. They deliver packages each business day for 1.1 million shipping customers to 7.7 million consignees in over 220 countries and territories. In 2011, they delivered an average of 15.8 million pieces per day worldwide, or a total of 4.01 billion packages. Total revenue in 2011 was $53.1 billion (UPS, 2011). UPS serves the global market for logistics services, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing. Their technology seamlessly binds their service portfolio. They have three reportable segments: U.S. Domestic Package, International Package and Supply Chain & Freight. An in-depth SWOT analysis was performed in order to develop new strategies for the company. External Analysis: Customer Analysis According to the UPS website (Datamonitor, 2011), the company does well in providing a diversified set of services through its three business segments of the end markets: UPS’ US domestic package business segment; UPS’ international package business segment; and the supply chain and freight business segment. UPS’ US domestic package business segment is engaged in air and ground delivery of small packages up to 150 pounds in weight and letters...
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