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UPS Case Study by Lance Williams
UPS Case Study by Lance Williams
Lance Williams
UPS
Founded in 1907 in Seattle Washington as American Messenger Company Started with just $100 dollars. 1919 started service in Oakland, CA 1930 started service in New York, NY 1952 Began to offer Air service (threw 3rd party airlines) 1988 launched its own air fleet 1999 UPS becomes a public company
Main competitors
Transportation
Logistics
System Integrators
Locations
Headquarters
are now based out of Sandy Springs, Georgia (near Atlanta). Formerly headquartered in Seattle, WA and then Greenwhich, CT. Worldport is their main air hub is in Louisville, KT.
The 90s
Started
the decade with $14 billion in revenue By 1999 was at $30 billion in revenue They realized that they were spending the majority of their cost on logistics, even though 95% of revenue came from package deliveries.
Out of every dollar spent on logistics, six cents is spent on moving small packages. The other 94 cents is the other part of the supply chain. Its fulfillment, its warehousing and its the cost of the goods. So we have been moving into the other 94 cents.
Logistics
Inventory Optimization
Transportation Optimization Package Engineering Hazardous Materials Warehouse Design Business Process Reengineering
Define project scope Gather detailed data set Establish design assumptions Baseline existing supply chain network Identify improvement opportunities Develop scenarios Run scenarios Rationalize the scenarios Compare scenarios to each other and the baseline Develop recommendations, present conclusions Try to give at least a 5, 10, or even 15% reduction in supply chain costs resulting in a competitive advantage by having a more efficient, flexible and, responsive supply chain.
Benefits Realization
Inventory Optimization
They will review raw materials and component inventories through internal channels and nodes and, in some cases, all the way down to the retail shelf. UPS uses a combination of business analysis, intellectual property, and modeling tools to assist you in developing and defining strategies for sourcing, transportation, and inventory holding cost.
Inventory levels by product Inventory form at each node--raw material, finished goods, WIP Inventory drivers Service Supply and demand uncertainty Lead times Inventory policies Transportation modes Node to node impacts
Transportation Optimization
They develop a transportation strategy for your company resulting in efficient movement of products as a result will help keep costs low and customer satisfaction high.
Customer Solutions evaluates multiple transportation modes, carriers, routes, shipping strategies, and support to find the lowest cost combination for your companies transportation optimization needs.
Package Engineering
Movement along your supply chain can take a toll on your shipments, and your packaging must be able to hold up under various conditions. UPS's test lab is a place where packages are tested for their endurance under extreme conditions.
The data from these tests help our engineers identify the most appropriate packaging for your product to help prevent damages, minimize reshipments, and keep your customers coming back for more.
Hazardous Materials
UPS has support services to help with the transportation of your hazardous materials.
Medical Pharmaceutical Bio-med Toxic Waste
Warehouse Design
UPS will help redesign your warehouse. From layout to function, Customer Solutions can help you design or redesign your distribution center so it works in the most efficient way as possible to suit your individual needs.
Capital
Financial Services has many tools in which it help with assist the clients of UPS. Some of those services include:
Consulting
Supply Chain forecasting and planning. Procurement, Production and fulfillment consulting
Freight Forwarding/Brokerage
Mailboxes Ect.
In 2001 UPS purchased Mailboxes Ect. Giving the company 4,400 retail locations in which to offer their services from.
Mail Innovations
Various levels of shipping services including:
iShip
Web bases solutions for management to track the shipping services for the entire company. They can track by department, employee and even specific details about packages. Allows for one system for filling your shipping needs. From the desktop to the mail room, all the way to accounting, the information is entered only once because one system is all that is required.
Technology Innovations
As UPS says, they used to be a trucking company that had technology and now they are a technology company, that just happens to have trucks. Video - Technology at UPS
ConnectShip
UPS's Customer Solutions focuses on giving your team visibility at any point in your order pipeline and across multi-modal or multi-carrier environments. They help you streamline your shipping operation and control shipping costs. They will use their vast quantity of technological programs to put together a single shipping application that has all the tools you are looking for and can be implemented in a short time frame.
UPS SampleSure
UPS SampleSure captures data from the moment you initiate a drug sample order and tracks it all along the way. It's designed to help you ship pharmaceutical samples to licensed practitioners, hospitals, and drug sample representatives, securely, and reliably. Vital information for every shipment can be stored for future reconciliation and reporting. Missing shipping or delivery information proactively triggers a follow-up.
UPS Trackpad
Trackpad eliminates the need for paper manifests. It will show package data to show where it is stored for look-up and reports. You can even make information available at each desktop to minimize "where is my order" calls. Trackpad creates an efficient information pipeline enabling all users and administrators to manage and search for information in seconds rather than minutes. It will
UPS Returns on the Web is a ready to use self-service returns solution that automates the returns process. This service allows returns to be completed online by the customer, including the delivery of a UPS return label. It can also link your back-end databases to the returns process to maximize the use of the return product information, reducing costs while improving customer service.
departure address destination address sender recipient consignee, product data, package content international customs information
The benefit to this is that there is no need to have multiple systems at UPS. The one file type can be used by all the various programs and communicate seamlessly between all the various departments.
DIAD
1991 DIAD I was released 1993 DIAD II which could update the date basses via cellular transmitters in the vehicles. 1999 DIAD III real time uploads and 2 way text messaging for immediate pick-ups
2004 DIAD IIII had Bluetooth, WiFi and GPRS or CDMA connectivity options. Also had GPS built into the unit for real time tracking.
DIAD V
DIAD V
Released in 2010 Includes to following upgrades:
First device in industry to switch on-the-fly between cellular carriers independent of cellular technology. Faster WiFi support (600 mbps) enables larger and richer content downloads such as training videos A state-of-the-art color display and microprocessor with expanded memory to support driver training and future applications including navigation About half the size (3.5) and weight (1.3 pounds) of DIAD IV. A color, auto-focus, flash camera could be used to enhance proof-of-delivery and to help resolve customer claims. An aggressive multi-dimensional imager to decode many symbologies, including UPS linear barcodes, without requiring the driver to rotate the DIAD to capture the barcode.
Before PLD and the DIAD, the driver had to pick up a physical piece of paper from the customers, obtain the signature and validate the number of packages. Now he just scans the packages and uploads the delivery Information with the DIAD, which gets matched with the PLD information from the shipping systems. Our billing is much more accurate and many driver tasks are automatic. Theres a whole driver process that has been eliminated based on the DIAD and PLD technology.
Current stats:
Scott Davis Revenue - $53.105 Billion Net Income - $3.804 Billion Employees 425,000 Employees Trucks 95,000 Vehicles Airplanes 238 Aircraft (A300, B747, B757, B767,MD-11)
CEO
Awards
UPS named Americas and the Worlds Most Admired mail, package and freight delivery company by Fortune Magazine. Forbes magazine named UPS company of the year. Named on Red Herrings 100 Most Important Companies Named in PC weeks Fast-track 100 MIT Sloan School of Management gave UPS a clicks-and-mortar
award
Any Questions?
Question # 1
A)
Question # 2
Which of the following are services offered under the Logistics division of UPS?
A) Supply Chain Optimization B) Package Engineering C) Warehouse design D) All of the above.
Question # 3
UPS was given the following award from the MIT Sloan school of management?
A) At-a-boy award B) Thumbs-up award C) Clicks-and-Mortar award. D) Oscar award
The End