MKTG 6253 Assignment #1
1) Research the problem and describe what occurred to prevent the packages from being delivered on time.
There are several reasons the late delivery occurred.
First, before the Christmas Eve, too many packages needed to be shipped in a short time. That made the employees work for 100 hours a week, but they still had the unexpected glut of packages from last-minute shoppers which came to the company 's air fleet. And also UPS usually can have 3.5 million packages sorted at Worldport, but too many packages arrived at Worldport during the last minute crush, which exceeded its capacity.
Second, Layra Stevens, Serena Ng and Shelly Banjo said in the article that “many packages were shipped too late to make delivery trucks ' pickup schedules and were left sitting in warehouses not far
…show more content…
The late delivery had very bad affects to UPS’s customers, although the company had given its apologies to customers and explained the reasons of late delivery. "‘UPS understands the importance of your holiday shipments,’ the company said in a Christmas Day statement on its website. ‘However, the volume of air packages in our system exceeded the capacity of our network immediately preceding Christmas so some shipments were delayed" (Dokoupil, 2013). The apologies from the company was failed and there are still some customers showed their angry to this company on Facebook and Twitter.
In order to the problem of late delivery, there is a study by University of Tennessee gave out some suggestions. “First, extend the lead time for several certain customers; second, raise the delivery windows for customers; third, use more consolidation of shipments; forth, increase the use of ‘drop and hook ‘pickups and deliveries; last, shift some deliveries from truck transport to rail transport options” (Po, 2014). And I think the ways helped with the problem, as no late delivery happen again in the year
AWG is faced with logistical challenges similar to others in the industry. The largest logistical challenge on a daily basis at AWG is their finite timeline between restocking and outgoing shipments to retailers. Any deviation from the schedule due to an extenuating circumstance (labor strike, weather event, ...
UPS has seven regional hubs in the US with operations worldwide. UPS uses its own hub-and-spoke system to expedite its cargo around the world, but its principal hub is Louisville International Airport. The UPS air hub at Louisville is called Worldport. UPS selected Louisville has their hub for two reasons. First, because of its location as UPS can reach the majority of the US population within two or three...
A system that sends real time updates to customers to let them know a closer range of time as to when your package will make it to you, would make it so more customers would be home to sign for their package. This would not only save time on the person receiving the package but would also save time, money and gas for the drivers as there will not be as many redelivery tries for the following day.
Also with U.S. operations, the type of product impact order fulfillment and shipment. Large and small item are never shipped together.
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
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.
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.
...ng luxury, not many people want to wait two weeks to receive their product. When an item is ordered, it is needed immediately, and if it is received immediately then it not only improve the relationship to the customer. But it will also add value to the purchase which makes that customer that much more likely to buy the product again in the future, as opposed to your competitors. If you have customers in remote areas you do not have the luxury to send their shipment in a large batch of items, you must pay more to have that item shipped individually, which is costing more money.
In the retail stores, managers are complaining of frequent stock outs even though the DC is full of merchandise, which is not moving enough through the supplier, DC, and retail stores. The inventory issue also ties in with transportation problems where accurate lead and delivery times are non-existent. The inventory turnover is not at its full potential because if the DC has merchandise yet the stores are stocked out, the inventory is frozen and will become obsolete.
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?
Express mails are for individuals who need their item delivered overnight. It is guaranteed to arrive at the desired location on time and is less pricey through this mailing distributor. Priority mail is the method most people prefer. It will get a package or letter to its wanted whereabouts in three to four business days. Price wise this is less expensive in comparison to competitors offering the same service. In addition, they make a flat rate priority mailing option. Flat rate means, as long as, the contents fit into pre-sized boxes the cost is always one rate for that carton. If a person wishes to trace their parcel during transportation, they need one of two utilities. They are delivery and signature conformation. Both are used to track mail piece...
Happy Chips, Inc. is faced with a serious problem, with only one mass merchandise customer called “Buy 4 Less” being unhappy with the company’s operating performance. Buy 4 Less had several problems cited, including frequent stock outs, poor customer service responsiveness, and high prices for the products being supplied. Buy 4 Less came up with solutions they think seem fit to fix the problems they found with Happy Chips, Inc. and if Happy Chips, Inc. wishes to remain a supplier to their company, they will have to incorporate these changes. The problem, however, with this scenario, is that employees of Happy Chip, Inc. are not happy with the demands Buy 4 Less has bestowed upon them, which include providing direct store delivery four times a week instead of three, installing an automated order inquiry system to increase customer service responsiveness, and decreasing product prices by 5%. Even though the easiest thing for Happy Chips, Inc. to do is to agree to the changes Buy 4 Less wants them to do, Wendell Worthmann, the manager of logistics cost analysis, doesn’t agree to the changes right away.
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.
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
As a solution for these issues, ensuring the shipments meet the daily cut-off schedule. Customers are to be informed proactively if there are any flight delays so that customers can give further instructions or they can make other arrangements. For customs issues, customers are to be educated of the different countries customs requirements and to notify customs delay.