States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 200 countries and territories around the world. UPS is well known for its ground package delivery. Nowadays, UPS also operates its own airline based in Louisville, Kentucky where its Worldport air hub is also located.Question 1: What do you think about the 3 opportunities mentioned (globalization, ecommerce, scm)? During the late of the 1990s, Globalization and supply chain management became more and more important and the e-commerce appeared at the same time. Companies had to establish the different strategies to get more profits and develop more markets. It was a period that was full of opportunities ofgrowth and possibilities of failure. Among the three opportunities, e-commerce is the most important one to which we should pay much more attention. Because it constitutes a new way to enhance direct communication between the providers and the buyers which becomes omnipresent in all companies, no matter local or international. UPS’s strategy is a good choice because the online B2C sales are such abig market and UPS was the first comer in this domain: the preferred shipper for online commerce and a pioneer on returns on the web. Globalization is also very important to be taken into account, especially for activities which can be delocalized. For package delivery industry, the local to local delivery is not very affected by delocalization, but the international delivery is. DHL is a goodexample and leader in this domain. For this point, UPS strategy was not very good at the beginning, because it focused on the U.S. domestic market instead of developing its international network. Noticing that international trade was growing, UPS decided to turn a part of its strategy to non-US markets, in order to avoid losing too much market share. Finally, UPS achieved to develop its network,building capacity in Europe and more recently in Asia and Latin America. The international delivery increases since 1995. At this period, Supply chain management got more importance because companies remarked that it could be a useful way to reduce stocks, costs and delays and to establish a good relationship with suppliers. In this domain, UPS strategy was good because it adapted its supply chainincreasingly and from an innovative way, offering financial services and software applications to its suppliers. Globally, the 3 points mentioned are sources of growth. If an undertaking doesn’t develop these aspects of its activity, it will become less competitive. So it’s a challenge in that kind of period to maintain its market share or even to get some.
Question 2. What are the strengthsand weakness of UPS versus FedEx? In the package-delivery industry timely, efficiency and speed, accurate and competitively priced services are the key success factors. Moreover, the ability to provide low cost access to customer’s information about the location and contents of packages is an important success factor.
Strengths: One of the major strength of UPS is the size of thecompany. UPS services 610 airports worldwide in comparison to the 325 serviced by FedEx. This global reach allows UPS to service more customers, reap larger revenues than competitors. UPS is the earlier comer of this industry, so it has a more complete network Ground delivery business higher daily package volumes and customer density than Fedex’s operations With over 13 million packagesdelivered each business day, UPS had drastically invested in technology, which had played an important role on its growth. UPS’s well developed computer systems had ensured to UPS customers an excellent service which fulfils its customer parcel needs. The system allowsUPS to improve operational efficiency by lowering costs and decreasing package delivery time Thanks to the UPS Logistics Group, UPS...