Moreover, the ability to provide low cost access to customer’s information about the location and contents of packages is an important success factor. The competitiveness in the package-delivery industry pushing prices down and squeezing margins is a major risk for UPS. Yet, since UPS depends on its workers for deliveries, there are some risks associated with the human factor that must be considered. There are risks that the delivery may be late, wrongly delivered, damaged packages, lost packages, or even strikes when workers refuses to work.
Moreover, UPS strategy of expansion to other countries may be threaded by changes in political alliances between the countries involved in the shipping process (sending/receiving).
Tariffs and other political barriers may be created as retaliation or protectionism to the national industry in the “receiving country”. Question 2: How is UPS performing? What factors are driving this performance? Is the current performance likely to be sustained? Why or why not? UPS is presenting a great performance.
With over 340,000 employees, 149,000 delivery vehicles, 500 planes, and $25 billion in annual revenues, UPS is the largest parcel delivery company in the world. The company delivered nearly 13 million packages each business day, UPS had drastically invested in technology, which had played an important role on its growth. In 2006 the results of UPS reported earnings increase of $0. 89 and this was an increase of 14. 1% over the results announced in 2005. This performance has been fuelled by an increase of 9% in global small package volume. This increase amounts to 1. 24 million packages every day.
The Research paper on Package Delivery
Package Delivery: Changes in the industry due to technology Joseph P. Satterthwaite Introduction The air transport industry encompasses flights of common carriers, certified cargo and passenger services offered to the public, and general aviation, which caters to private aircraft used for recreation or business. The industry supports a wide range of businesses and borne from it were package ...
This performance is not likely to be sustained because this spurt is faster than the world market growth. Question 3: How is FedEx performing? How, if at all, do its performance and plans affect your assessment of the sustainability of UPS’s current performance? FedEx Corporation Federal Express was founded in 1971. In 1973, FedEx started operations officially and its hub-spoke distribution pattern enabled it to offer cheaper and faster service than its competitors. By 1981, UPS began to enter into the overnight air market and the United States Postal Service (USPS) cut its overnight letter at half the price of FedEx’s.
Despite facing such extreme competition in the industry, FedEx could still excel due to change in the business environment. The success of the firm could be attributed to several factors: 1. Deregulation: Deregulation of the domestic airline industry allowed FedEx to purchase several Boeing 727s to replace smaller planes. Also, trucking industry deregulation permitted FedEx to integrate regional trucking system, which helped the firm to reduce its unit costs and compete with UPS more effectively. FedEx could achieve economies of scale that enabled the company to lower its unit costs and increase its profits through mass production. . Innovation Technological innovations such as COSMOS (Customer, Operations, Service, and Master On-line System) enabled FedEx to achieve important advances in customer ordering, package tracking, and process monitoring. 3. Inflation and the rise of asset-oriented manufacturing approaches: Manufacturers demanded closely managed inventories because of rising inflation and global competitiveness, which created a higher demand for FedEx’s rapid and carefully monitored movement of packages. Ups vs Fedex FedEx and UPS are always seeking a competitive edge over one another.
And as the two companies are encroaching on each other’s primary businesses (UPS on overnight delivery and FedEx on ground delivery), they are concurrently stepping up their wireless deployments as well. The reason: operational efficiency? a critical business requirement aimed at shaving costs, increasing reach and doing more with the same resources. Their approaches to deploying wireless technologies over the past 15 years have been markedly different? FedEx has led the way with cutting-edge applications, while UPS has been slower and more deliberate.
The Term Paper on Wireless Technology
Legal Concerns Related to the Development of Wireless Technology31 Economics in Relation to Wireless Technology33 Psychological considerations and sociological effects43 Personal Communication43 Emotional Disconnect45 Worldly Effects 50 Media Influence51 Impact on Education52 Impact on USA54 Environmental Implications55 Implications for Wireless Technology56 Wireless Waste56 Analysis59 Health ...
UPS refreshes its technology base roughly every five to seven years, when it rolls out a unified system in stages that it synchronizes with the life span of the older system. FedEx deploys new technologies as soon as it can justify the cost and demonstrate improved efficiencies and customer benefit. But the goal is the same for both companies: to utilize next-generation wireless technologies in order to better manage the delivery of millions of packages that flow through dozens of sorting facilities every day. FedEx is in a startup way, while UPS is fairly staid,” says Kevin Tynan, a senior equity analyst at Argus Research. “They have two different ways of ending up at essentially the same point. ” Recently, these two pioneers in wireless applications utilization have increased their use of off-the-shelf solutions. The two companies are exploiting new wireless technologies in their differing attempts at aiding the two main components of their operations: pickup/delivery and packaging/sorting. Both are also looking ahead to potential applications of radio frequency identification and GPS wireless technologies.
