Case Study Of UPS Supply Chain Systems

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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.

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