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Ups Case Study

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UPS

UPS

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ounded in 1907, UPS delivers approximately 21 million packages per day. Every minute around the world, the organization is entrusted with 2 percent of the global gross domestic product. UPS’ business enables the movement of goods, information, and funds through one integrated network that operates in more than 200 countries and territories. UPS provides supply chain solutions through supply chain design and planning, transportation and freight services, logistics and distribution services, international trade management, and specialized services. The organization combines sales, marketing, finance, and technology for its supply chain subsidiaries. As a global services enterprise, leveraging technology has allowed UPS to make “small companies look big” as well as be recognized as a comprehensive supply chain partner structured around four main areas: U.S. operations, international package operations, supply chain and freight, and other non-package (the UPS store, UPS Capital Corp, etc.). UPS Chief Executive Officer Mike Eskew cites that commerce has changed considerably over the last few years. In the early years of the organization, commerce consisted of three distinct flows: product request, product creation, and product payment. These flows or transactions were conducted face to face. Today, it is understood that these three flows of commerce converge into point, click, and order, which then translates to pick, pack, and ship. This converged method is significant, as it impacts operations productivity. Where the cost to track packages was once $2 (USD) per phone call, it can now be tracked for pennies per package. A way that productivity has been increased at UPS is through leveraging technological automation. An example of the impact of technology may involve someone going to the Amazon Web site (www.amazon.com) and ordering an item. The information is

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