Shipping over 15 million packages a day with over 390,000 part time and full time employees, UPS is the largest shipping company in the world both by volume and revenue. With that many packages, one must wonder, how does a package get from point A to point B? In this section, we will talk about the life of a shipment when it goes through UPS’s Supply Chain and Freight service.
When UPS receives or picks up their last package from any of their 154,000 entry points such as dropboxes or customer centers at 6pm every business day (Monday-Friday), the shipment goes onto a truck to a local hub. The local hub is one of 1800 operating facilities around the world and is used to pre-sort packages. Once pre-sorted, workers load packages onto trucks that needs to be shipped locally through UPS ground or onto planes if it needs to go cross-country or internationally. The planes then take the parcels to WorldPort, which is the heart of their operations. (UPS, 2013)
Worldport is located in Louisville, KT, which is located only 2 hours or less away from 75% of the U.S. population. This is convenient for them because of the overnight shipping service that they began in the 1980’s to compete with competitors that offered the same service. The short time travel also allows them to keep their customers happy because of the speed in receiving their package (Schactman, 2012).
Once the planes arrive Worldport, this is where the magic begins for UPS. This factory is so efficient with time, they’re even able to coordinate the landing of planes in 2.5 minute intervals. This is important especially during peak seasons and to save money on jet fuel. There are 44 loading/unloading terminals that the planes can be taxied in to. Once there, the company emp...
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... and loaders have so that they don’t have to stop package handling in order to scan.
For an outsider looking in, this company is doing very well at managing their technologies used in how they do business. For managers within the company, there is always room for improvements in order to stay on top of the industry. Though UPS is fast at shipping, they can be faster. There have been talks within the company regarding shaving extra time from delivery by spending $70 million in sensors for their trucks that measure engine speed, oil temperature, seatbelt sensor, back up sensor and many others to monitor how the drivers are utilizing the trucks and time. This system will also include a key fob will start/stop the engine and lock/unlock overhead door. This along with being able to walk 2.5 paces per second will allow the company to save 6.5 minutes per driver per day.
Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1).
Furthermore, this was kind of funny, because as a kid I was amazed at how Amazon ships customers’ packages in the fastest and the most cost-effective way. As a kid, I remember asking my parents “How does Amazon do this?” and I remember them saying that I will need to major in a topic that will help me understand this process. Every time I ordered an item from them, I would think about the process of obtaining the packages using robots, packing the items safely, and then shipping them off to customers. This is an example of logistics and efficiency at its finest. As a junior, I still do not understand this process fully, since I am currently taking IDIS 240. But, by the time I graduate, I hope to fully understand this process.
UPS is the world's largest package delivery company and is headquartered in Atlanta, Georgia. The company was started in 1907 by James (Jim) Casey at the age of nineteen. Jim Casey borrowed $100 from a friend and started the American Messenger Company in Seattle, Washington. Despite stiff competition, the company did well because of Jim's strict policies: customer courtesy, reliability, round-the-clock service, and low rates. He used the slogan: "Best Service and Lowest Rates." (www.ups.com).
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
Montealgre, Ramiro, H. J. Nelson, Carin I. Knoop, and Lynda M. Applegate. BAE Automated Systems (A): Denver International Airport Baggage Handling System. Rep. no. 9-396-311. Boston, MA: Harvard Business School, 1996. Print.
Over the years role of supply chain has been altered. The distribution has switched from shipping from one focal point, now technology has shortened the process that will to ship directly from the manufacture to the customer that will tie in to the distribution channels. Though distribution is costly, a person would think all the risk will be eliminated. Contrarily to what people may think, distribution have many risk it must account. When the product is unloaded onto the truck, it’s the trucker sole responsibility to ensure the customer receive their product. Distribution initially start at beginning when it is
Having spent the better part of 35 years in the shipping and cargo field, Craig Raucher has established many non-asset and asset based operations for DHL Worldwide Express, Total Freight Solutions Global, and Corporate Express Delivery Systems. His ability to determine whether the third party logistics company will retain and use their own assets or others has increased the profits of each
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
The trucking industry over the years have changed the type of services and the quality that it has provides to its customers. In today’s industry the focus is on efficiency with the overall beneficiary being the American consumer. Majority of today’s freight is being transported by truck during sometime in the distribution chain. Some of factors the trucking industry is facing today include hours and earnings and safety issues.
The weakness of FedEx is actually its size. The corporation is so large it is costly to run and pay for employee salary and benefits (Ferrell & Hartline, 2011). They have even found themselves in legal trouble because they did not feel they could afford to provide their drivers benefits like all other employees (Ferrell & Hartline, 2011).
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
Because of its location on the east coast it allows Gulfstream access to sea, air, and land. Gulfstream keeps cost low by contracting out the construction of certain parts of its aircraft and having them sent to Savannah. Gulfstream has suppliers in Holland, Germany, the U.S. and Mexico. The tail sections and floors of the Gulfstream G500 and G550 are made in Holland (Thuermer, 2004). These parts once assembled are then shipped to Amsterdam and then to U.S. to Savannah. For this reason, international shipping access is required. Once they arrive in the states, they are then trucked to the assembly plant on oversized truck loads. This short distance from the port to the plant is key to the success of the chain. It would require a lot of coordination to get these pieces to travel long distances. The engines are flown in from Germany to Atlanta International Airport where they are trucked to the plant in Savannah. Finally, the wings are built in Texas, and then shipped via railway to Savannah. All these connections require their final destination to be centrally located to ports where these parts can be delivered close.
The FedEx delivery company, the world's most important courier service, provides a good example of how intermodal transport operates. The FedEx network is built around a single hub airport located on each continent. The American hub is located in Memphis, Tennessee, the Near East one is located in Dubai, and Subic Bay, Philippines acts as the Asian hub and, Roissy, France represent the European hub. These redistribution points act as bridges between international relations. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world.
Internet commerce; which is in a huge need for shipping and UPS offers the ability to track all packages around the world.