Reference no: EM13463120
Founded in 1907 by 19-year-old James E. Casey, aka Jim. This young entupunure Jim started in debt to his friend for $100 and the established the company American Messenger Company in Seattle, Washington. He was not the first messenger service in the Seattle area he already faced competition. Starting in a basement receiving phone calls, the messenger service he provided entailed running errands, delivering packages, carried notes, packages and trays of food from local restaurants. How do you ask, did this group of gentlemen get the goods delivered, either by walking or by riding a bicycle. This later on affected the company's growth, not being able to deliver enough packages to stay competitive at an efficient time. Also, they were confided to a minuscule area, they can only go so far walking or on bicycle. This all changed in the year 1913, with the company's first delivery car, a Model T Ford.
The company did not just decide to purchase their first car they went as far as a name change and a "partnership" with the United States Post Office. The new name was etched in the side of the Model T, Merchants Parcel Delivery. The company started to take off, with its separation from the local competition using care when handling packages and high standard service. All of his outstanding service and lowest rate didn't go unnoticed; in 1918 three of Seattle's largest local department stores had relied complete on this growing company by removing their own delivery cars. Using this situation to capitalize they purchased the unwanted delivery cars and turning to Merchants Parcel Delivery.
Thinking bigger then where they were located in Seattle, Washington; in 1919 Jim and his partners to move to his first expansion located in Oakland, Ca, to go hand in hand with the move Jim changed the name again for the fourth time, United Parcel Service, know as UPS. Expecting the rates to increase Jim found a way to keep the rates low. The expanding company kept their rates low by combining packages addressed to certain areas onto one delivery car. Making sure they lead the industry Jim had created many differentiating features of common carrier. The common carrier service included "automatic daily pickup calls, acceptance of checks made out to the shipper, automatic return of undeliverable, and streamlined documentation with weekly billing" .
UPS used technology innovation to enhance their company. In 1924 UPS installed the first conveyor belt system. By the year 1927 UPS has expanded to all major cities in the United States.
Today UPS is considered the "world's largest package delivery company". Not holding back taking UPS globally, capitalizing in the "leading global provider of specialized transportation and logistics services" . Not being timid to net technology advances able admittance to unbounded resources, including an arrangement of physical technological along with human assets.
United Parcel Service is a prime example of technologies driving a company; the UPS Company embraced technology change or even created a service to enhance the company and what it has to offer. United Parcel Service has invested $1.5 billion on technology improvements. UPS began to assemble its own its cargo fleet in 1981, eventually providing Next Day Air Service in all 48 states. Today UPS is one of the largest airlines in the United States . For UPS to become successful the company had come up with Lido. Lido is a program that calculates the best routes depending on certain factors that affect the productivity of delivering the packages. For instance the weather, terrain and air traffic.This allows UPS to save more than one million gallons of fuel .
Using technology for the great good of the company, for instance in 1992 United Parcel Service developed a new technology to advocate skill and keep the vision of the company active; keep prices competitive and provide new customer service. This development was known as DIAD. Based on customer demands, inquiring information about their packages in travel, United Parcel Service created an electronic tracking of all ground packages. Not long after the company created a Web site that allowed customers to follow their packages in shipment . This technology provides the drives of the brown truck with data to help increase efficient delivery by eliminating extra driven miles which save on fuel, and saves 7,308 trees per year.
Getting the basics of shipping the packages is a technology created Package flow. Which is a software and hardware made to give the deliverer the option many options of service to customers. The package Label Detail was created to maximize the level of "automation" that is needed to provide the customers most capability. The Label Detail helped to create the Smart label using bar codes to let the hub, the deliverer, the shipping address, which ensures the package gets to its final destination and on time .
FedEx reported on the consolidated balance sheet a $7,680 million amount in expenses in the year 2013, consisted of Salaries, employee benefits, purchased transportation, rentals and land fees, depreciation, fuel, maintenance and repairs, business realignment, impairment and other charges. With a net income provided on statements of income is $1,561 million.
For the UPS Company on the balance sheet provides the information of 1,561 million in liabilities with accounts payable, accrued wages and withholdings, self-insurance reserves long term debt. For UPS the net income of $4,372 million confirmed on the statements of consolidated income, shows the income is higher then the payout of the company. Where are is it the opposite for their competitive company FedEx which had more of a payout then what the income is
Manufacturing from outsourced items is offered based on specialists who have higher level of expertise for lower cost. So therefore subcontractors build their products, while the manufacture they focus on the brand management. In order to outsource you have to consider three specific types of supply chain knowledge. Functional Knowledge, industry knowledge, and internal company knowledge are areas of strength needed to provide the best services for your company. Starting off with functional knowledge is focusing on formal education, for example certifications, trainings. Which can fall into an abstract category or procedural. Industry knowledge is unique to what the inner company works within a industry. They are specialists so to speak for instance you would not send a History teacher in a hospital to perform a surgery. The employees need to be knowledgeable of the task that is being asked. With the internal company knowledge is harder to gain you need to be hands on so to speak. You learn or gain a relationship with supplies and customers based on actual interaction. The reason why a manager may outsource is the third party provides better services with high performance, cost overruns, extend timelines, the third party services provide valuable industry knowledge. Having this mind set of an outsourcing manager will provide the right choices leading to the correct decision
FedEx has a larger amount of fleet airplanes counting 401, which goes with picking up and processing e-commerce shipments and transports them to with a plane to their destination. Apple, which is a larger company, leans toward using FedEx with handling their e-commerce shipments. The shipment for FedEx is offered at a cheaper rate when using the next day delivery within the United States.
On the other hand UPS has a larger market in Europe and offers "two types of time-definite delivery services" according to shipping costs for UPS and FedEx. Which are US Domestic Packages delivery of letters, documents and packages. For international package service can be deliver to over 220 countries worldwide . I believe UPS will grow within the next five years. They have shown nothing but growth since day one. With revenue of $53.105 billion I do not see any fall back. With everything now going virtual I believe UPS will be there to capitalize on the newest technology to transform the industry.