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BMGT 370: United Parcel Services

1016 Words5 Pages

Astra
Tatiana
BMGT 370
Professor: Geoffrey Milson

UPS’ S IPO

The article talks about United Parcel Services. The Package delivery service was created in 1990 has become a strong force in 1999 with a net worth of $ 43 billion industry serving a wide variety of customer. The industry offered two types of delivery services, Air and Ground. Air delivery allowed customers to ship their parcels overnight. The delivery times ranged from two to three days and the packages are usually small. Furthermore, the Ground Service consisted of traditional style of delivery and these deliveries were made within six business days. Cars, trains, trucks and vans did the ground service. For a while ground service was most reliable from of parcel transportation …show more content…

By 1990, FedEx moved over 3 million packages each day, and it could reach every address in the United States within 24 hours. FedEx offered services such as Federal Express, which is the overnight delivery arm of FedEx Corporation, was the most important operating unit and accounted for 84% of total revenues in 1998. Moreover, FedEx also controlled FedEx Custom Critical that was a time critical carrier. In addition, FedEx Logistics provided logistics solutions and some assistance to other businesses. Furthermore, Viking Freight operated as a less- than-truckload West Coast regional carrier. FedEx’s commitment to high-customer service reflected in its best- in-industry on-time reliability record, and its flexibility to offer customers in pickup and delivery …show more content…

The trends are Globalization, E- commerce, and supply chain management. As we know, Globalization played an important role in in the late 1900’ s international trade. While, it generated 11% of US GDP, by 1998 it generated 3 billion dollars revenue. As a result, one of UPS’s major strategic growth initiatives was building capacity in non-U.S. markets—first Europe and more recently Asia and Latin America. Ups also focused on the trend of E- commerce. Technology and Internet were not luxurious goods, anymore, but they were outlets used by customers to purchase things online. UPS wanted to ensure that its position to be the primary shipper for E- commerce. For instance, UPS had partnership with E-commerce such as E-bay, Amazon and others online businesses for shipping customers’ orders. Moreover, the last trend was supply chain management. UPS had partnership with supplier companies, from auto manufacturer suppliers to electronic component producers. This partnership involved UPS to handle the flow of shipments to corporate customers. According to the article, UPS started to offer its suppliers a portfolio of financial services and logistics technology software applications designed to help them better manage their inventory and shipping logistics through its UPS Logistics

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