Professional Documents
Culture Documents
The work is labor intensive but is also aided with advances in high speed sorting machines guided with RFID and bar code technology. UPS has developed high technology solutions to problems of reducing costs and errors. Integrating this internal functionality with a front end connectivity to customers allows them to maintain an advantage over their competitors. This companys operations relies on their industrial engineers to develop new ways of control and efficiency. Currently, UPS is heavily focused on reducing cost by having larger trucks make fewer trips, a savings program that will reduce fuel cost by $1 million a month and further linking itself with their ecommerce customers. Human Resources OBJECTIVE: A high sense of culture and esprit, stock participation plan, and promotion opportunities contributes to a low turnover rate of employees. The company is managed from a highly centralized Management Committee organized along for the most part in to functions as opposed to business units. There are business unit presidents in the Management Committee but only to the extent that the business unit is organized at a global or firm wide level. UPS is the nation's 3rd largest employer with nearly 400,000 employees worldwide. Recruitment starts with part time work for undergrads that lead to full time offers. Nearly all of the managers started this way with UPS and this has insulated the firm in the past. The firm is now opening the doors to more lateral hires and the changes are reflected in the make up of the Management Committee, which is slowly promoting professionals who did not start their career with UPS. Finance OBJECTIVE: Highly liquid company has been investing at a faster rate than returning cash to investors, which are for most employees. The company is highly liquid with 1 times the cash necessary to cover current liabilities. UPS increased its dividends at 20% per year for the past five years with an even higher growth in the rate it has been buying back stock, at 47% over the same period. The firm has been paying down debt over the last five years while steadily increased Fixed Assets and Working Capital, in line with developing the infrastructure to support the latest in logistics technology and their customers push towards JIT manufacturing. Over the past five years, Working capital has increased 24% per year. The firms capital structure is in line with a company that has been run by traditional long time employees. 50% of the capital structure is equity with the remaining sources of capital split between current liabilities at 20% and long term debt at 14%.
The company is investing its cash in to Working Capital. The evidence there is a 28% growth rate in cash versus a 14% rate for Retained Earnings, which is experiencing a decelerating growth rate for the past five years.
OBJECTIVE
Provide a complete logistics Highly integrated operations support High sense of culture and esprit infrastructure to a businesses of any product offerings to offer low cost contributed by low turnover rate, size delivery operations stock participation plan, promotion opps Highly liquid company has been investing at a faster rate than returning cash to investors, which are for most employees.
ORDER ACQUISITION
FULFILLMENT
NEW PRODUCT DEVELOPMENT Highly integrated operations support product offerings to offer low cost delivery operations
The result of the analysis is that UPS is able to satisfy Fulfillment by consistently meeting customers expectations on timing and handling by concentrating on their Operations/Technology initiatives that created a wholly integrated supply chain available to businesses in nearly any industry.