Sample Case Study On Ups Value Chain Analysis And Implication
United Parcel Services (UPS) is the largest known organization for package delivery service provider. UPS is one of the major organizations that have enhanced supply chain strategy on most businesses globally. Over the years, UPS Company has been keen on transport and shipment in nearly all states globally. Today, the company has enhanced their strategies of shipment and logistics several ways making it world’s number one Shipment and Logistics Company. This paper will focus on the effect of UPS on three major states which include North America, Canada and the USA. In general, UPS deals with freight forwarding,logistics, mail packages, and supply chain services. This paper will address UPS value chain and some of the implications associated with it.
The business nature of UPS is appropriate in a vast way. The basic activities of UPS involve operations, Logistics, outbound logistics, services, and sales and marketing. It is clear that the services that have been offered UPS are extraordinary. More than a few organizations and clients globally have appreciated the good services and delivery offered by UPS organization (Jackson, Susan, Schuler, and Steve, 234). It is clear that the major primary activity is mainly associated with client’s scheduling, routes, and different forms of transportation needs to guarantee that packages are handled and transported safely to their destination. The UPS organization ensures that clients are not only satisfied, but they are fully appreciated for accepting UPS services (Daft 23).
Based on research, UPS offers a value added service from starches to clients in numerous ways. For instance, the company has ensured that clients in America, Canada, and North America receive their services through speed and efficiency. The company ensures that clients receive their services on the required period. After that the company would contact clients through emailing and phone calls for any further assistance or need (Sudalaimuthu, and Anthony, 232). This ensures clients have attained trust and satisfaction on the services offered. The company is accountable and responsible for their customers to uphold its reputation, and this ensures growth and development of the organization in different ways. This approach is suitable because it has enabled the company to outperform its competitors in the global market of transport and logistics (Reynolds 43).
In America, the company has employed qualified pilots, shipment, and drivers who ensure that equipment are well delivered without any damages or loss. In case this happens, the company is always accountable for losses and damages incurred. UPS outperforms its competitors in many ways. For instance, the company allows clients to use their internet to access their products or items. It offers a variety of services via the internet and other organizations globally (Harris 89). This has facilitates clients to track their property/products without any challenges or issues. To date, the company has managed to make approximately 50 acquisitions that include the most recent Korea express (KEC). Partnering with another organization has been a suitable approach for growth and development of the organization (Reynolds 124).
UPSorganization ensures that they have dealt with their clients parcel packages from dropping until they are delivered to their final destination. However, it is clear that despite the suitable and enhanced services that UPS offers, it is restricted to the three major states mentioned earlier. The three states, North America, America, and Canada (Kahn 93).UPS sector is restricted in America for various reasons. America, North America and Canada restrict the company from shipping some items. Some of these items include Alcoholic beverages, dangerous goods, animal products, or precious metals among others selected (Kahn 37).
In the year 2008, the United States of America stated that UPS needs to enhance its delivery service because it was faring below average compared to its rivals. A research carried out reviewed that the organization database information systems had made some omissions that affected the States revenue. The same issue applied to North America and Canada. Lack of information influenced a number of issues that declines the ratings of the company. Conversely, it is evident shipments are subjected to examination and probable delay of clients of other authorities (Waters 78). The administrations of the three states have reserved the right to reject or suspend any package that does not set out contact details for the receiver and the shipper of goods. This approach ensures that details are well recorded in order to avoid inconveniences. The three states have been significantly empowered UPS in numerous ways (Jean-Paul n.p).
In summation, the UPS system in Canada, America and Canada aims at servicing business since 70% of the traffic handles is business to business. In order for the system to be efficient, the administrations of the three states ensure that UPS relies on the effectiveness of its distribution systems. In general, the three states are funding UPS immensely in transport technology research. In the current years, it has been noted that UPS has shifted its courtesy at offering new distribution and services through internet based activities. The three states continue to benefit from the extraordinary effects influenced by UPS organization. America, Canada, and North America receive services daily and annually. This approach has significantly benefited the financial system of the three states effectively.
Jean-Paul Rodrigues. UPS: Logistical Management of Distribution Networks. The Geography of Transport Systems. 2014
Kahn, S H. In the Matter of United Parcel Service, Inc., Common Carrier, Irregular Routes. Washington, D.C: Interstate Commerce Commission, 2009. Print.
Daft, Richard L. Organization Theory and Design. Mason, OH: Thompson-South Western, 2006. Print.
Reynolds, George W. Information Technology for Managers. Boston, MA: Course Technology, Cengage Learning, 2010. Print.
Jackson, Susan E, Randall S. Schuler, and Steve Werner. Managing Human Resources. Mason, Ohio: South-Western cengage learning, 2012. Print.
Kahn, S H. In the Matter of United Parcel Service, Inc., Common Carrier, Irregular Routes. Washington, D.C: Interstate Commerce Commission? 2006. Print.
Yannaca-Small, Catherine. Arbitration Under International Investment Agreements: A Guide to the Key Issues. Oxford [u.a.: Oxford University Press, 2010. Print.
Harris, H S. Competition Laws Outside the United States. Chicago, Ill: Section of Antitrust Law, American Bar Association, 2001. Print.
Waters, C D. J. Global Logistics: New Directions in Supply Chain Management. London: Kogan Page Ltd, 2007. Internet resources.
Sudalaimuthu, S, and Anthony S. Raj. Logistics Management for International Business: Text and Cases. New Delhi: Prentice Hall of India, 2009. Print.