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United Parcel Service (UPS)

Introduction

UPS is the world’s largest Package delivery company. United Parcel Service, Inc. (UPS)
is a package delivery company. The Company delivers packages each business day for
1.8 million shipping customers to 6.1 million consignees in over 200 countries and
territories. During the year ended December 31, 2008, UPS delivered an average of 15.5
million pieces per day worldwide, or a total of 3.92 billion packages. Its primary business
is the time-definite delivery of packages and documents worldwide. UPS operates in
three segments: U.S. Domestic Package operations, International Package operations, and
Supply Chain & Freight operations. U.S. Domestic Package operations include the time-
definite delivery of letters, documents, and packages throughout the United States.
International Package operations include delivery to more than 200 countries and
territories worldwide. Supply Chain & Freight includes its forwarding and logistics
operations, UPS Freight, and other related business units.

History

Head-Quartered in Sandy Springs, Georgia, United States. Sandy Spring is a city of north
Georgia. Incorporated in December 2005. It is the suburb just north of Atlanta and is the
eighth largest city in the state.
UPS delivers more than 15 million packages in a day. And on other hand UPS keeps
approximate 6.1 million customers in more than 200 countries and territories around the
world.
Since 2005, its operations include logistics and other transportation-related areas. Its has
been Headquartered in Sandy Spring since 1991. And it has previously been located in
New York City from 1930 until 1975 when it moved to Greenwich.
August 28, 1907: 19-year-old Jim Casey and 18-year-old Claude Ryan founded the
American Messenger Company in Seattle, Washington, capitalized with $100 in debt.

Progress Yearly.

1913: The first delivery car appeared, a Model T Ford. They merged with a competitor,
Evert McCabe, and formed Merchants Parcel Delivery. Consolidated delivery was also
introduced, combining packages addressed to a certain neighborhood onto one delivery
vehicle

1918: A new member was recruited, Charles W. Soderstrom, who helped manage their
ever-growing fleet of delivery vehicles.

1919: Service began in Oakland, California. The name United Parcel Service was
adopted.
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1930: A consolidated service began in New York, and soon after began operations in
other major cities in the east and Midwest. First mechanical system for package sorting.
Accountant George D. Smith joined the company. The name United Parcel Service was
adopted all over the country. All UPS vehicles were then painted the familiar Pullman
brown, chosen because it was considered neat, dignified, and professional. Headquarters
moved to New York City.

1940–1959: Services were expanded by acquiring "common carrier" rights to deliver

packages between all addresses, any customer, private and commercial.
UPS Boat on Canal Grande, Venice, Italy

1952: Blue Label Air established.

1975: UPS began servicing all of the 48 contiguous states of the USA. UPS also
established Canadian operations in 1975. On Feb. 28, UPS Ltd. (later changed to UPS
Canada Ltd.) began operations in Toronto, Ontario with a single delivery vehicle. UPS
Canada's head office is located in Mississauga, Ontario.

1976: UPS established itself in Europe with a domestic operation in West Germany. Blue
Label Air.

1982: UPS Next-Day Air Service is offered in the US and Blue Label Air becomes UPS
2nd Day Air Service.

1988: UPS Airlines is launched.

November 10, 1999: UPS became a public company
In March 2003, UPS unveiled a new logo, replacing the iconic package and shield
originally designed in 1961 by Paul Rand.

In 2004, UPS entered the heavy freight business with the December 20 announcement of
the purchase of Menlo Worldwide Forwarding, a former subsidiary of Menlo Worldwide.
UPS rebranded it as UPS Supply Chain Solutions. The purchase price was US$150
million and the assumption of US$110 million in long-term debt.

On August 5, 2005 UPS announced that it had completed its acquisition of less-than-
truckload (LTL) trucking company Overnite Transportation for US$1.25 billion.[4] This
was approved by the FTC and Overnite shareholders on August 4, 2005. On April 28,

2006, Overnite officially became UPS Freight.

On October 3, 2005, UPS completed the purchase of LYNX Express Ltd, one of the
largest independent parcel carriers in the United Kingdom, for £55.5 million (US$97.1
million) after receiving approval for the transaction from the European Commission. The
first joint package car centre operation, in Dartford, Kent, was opened during mid-2006...

August 28, 2007: United Parcel Service celebrated its 100th anniversary.
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Evaluation

UPS Company can be evaluating to some major description points which is help out to
understand for the company’s background accordingly.

Type Public (NYSE UPS)

Found 1907

Industry Courier

Products Courier Express Services,

Freight forwarding Services,
Logistics Services.
Revenue US$51.5 billion (2008)

Operating Income US$5.38 billion (2008)

Net Income US$3.00 billion (2008)

Employees 425300 (2008)

Subsidiaries UPS Store

UPS Capital
UPS Airline
UPS Express Critical
UPS Logistic
UPS Mail innovations
UPS Professional Solutions
Website http://www.ups.com
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Problems/Solution.

1. Consumers Confidence in UPS’s Delivery Times

• UPS is the first shipping company to offer a money back guarantee on shipments.
• UPS has recently improved delivery times in, Atlanta, Baltimore, Boston, Dallas,
Houston, Indianapolis, Kansas City, Los Angeles, Miami, Minneapolis, New York,
Philadelphia, Pittsburgh, San Francisco and Washington, D.C.
• They did this by altering railroad schedules while improvements also came through
modifications of UPS's hub-and-spoke interstate trucking network. Other improvements
resulted from changing package sorting times or locations.

2. Speed of Packages Delivery

Solution: Delivery Information Acquisition Device (Diad) Diad enabled drivers to scan
package barcodes, capture signatures and then up-load this data onto our mainframe from
any telephone.
• UPS is basing the package-flow system on so-called smart labels that contain bar-coded
delivery information and are already used by more than 90% of its customers.

3. Unstable Fuel Price

• As of 2003 a new software system, being written in a combination of C and C++ will
generate preloading labels for packages to aid in the loading of delivery vans. In addition,
it will also include built-in geographic information system software to help planners map
out routes. And will run on UPS's existing back-end systems, with end users accessing it
via PCs.
• Implementation of Transportation computer software system should reduce the mileage
of the company's delivery fleet by more than 100 million miles per year, saving about 14
million gallons of fuel.
• Breaks down a massive operation by individual hub.

4. Pilots Dependent on Ground Control to Decide their Every Maneuver

• Implemented Automatic Dependent Surveillance-Broadcast, or ADS-B in planes

cockpit.
• ADS-B transmits speed, heading, altitude, and GPS coordinates, to all other planes
similar equipped allowing each to map traffic around them. As a result pilots become
aware of other planes operations, and can act upon those to create their own path flows
which minimize time and fuel usage.
• Specifically used in bad weather and at night, where air traffic is most highly volatile.
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• Goal for Louisville KT to go from 304,000 to 500,000 an hour, if this strategy is

implemented as desired.

Questions/Answers

1) About Package Tracking System?

a) U.S. Domestic Packages.

U.S. Domestic Package operations include the time-definite delivery of letters,

documents, and packages throughout the United States.

b) U.S International Packages.

International Package operations include delivery to more than 200 countries and
territories worldwide, including shipments wholly outside the United States, as well as
shipments with either origin or distribution outside the United States.

2) Technology and Strategies

The UPS Company used a Information Technology (IT) for growing the business.
Company builds up specific software that operations research and mapping technology as
well. It has 14 million packages which are delivering to the customers in a day. On other
hand for global delivery Network Company used supply-chain management for other
companies.

Reference:
For accomplishing this assignment I help out from these resource sites which have been
mentioned as following.

http://www.ups.com
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http://www.nyse.com
http://en.wikipedia.org/wiki/United_Parcel_Service
supernet.som.umass.edu/visuals/UPS_Final