Abstract
The American Messenger Company, founded in 1907, primarily focused on package delivery to retail stores and special delivery mail for the U.S. Post Office. In 1913, it acquired a Model T Ford as its first delivery vehicle. In 1919, the company expanded to Oakland, California, changing its name to United Parcel Service. UPS became one of the only companies in the United States to offer common carrier service, expanding to areas up to 125 miles outside the city. UPS faced direct competition with USPS and the Interstate Commerce Commission, but the common carrier service was applied in cities where UPS could use the service without the authority of the ICC and state commerce commissions. In 1953, UPS resumed air service called UPS Blue Label Air. UPS expanded its operations to serve all 48 contiguous states in the United States, Canada, and West Germany. In 1991, UPS relocated its headquarters to Sandy Springs, Georgia, and acquired Haulfast and Carryfast, rebranding them to UPS Supply Chain Solutions. UPS offers international package services to over 220 countries and territories worldwide. The company faces competition from major domestic carriers like the United States Postal Service (USPS) and FedEx, as well as regional carriers like OnTrac and LSO. UPS has partnered with the US Postal Service to offer UPS Mail Innovations and “SurePost,” which use the UPS Ground network to deliver packages weighing under 10 pounds to the nearest UPS Package Center. UPS supply chain is expanded within current era. UPS has received a “striding” environmental scorecard and received the Clean Air Excellence Award from the US Environmental Protection Agency.
Keywords: UPS Supply Chain.
Introduction
A brief history of UPS, Inc.
The American Messenger Company was founded in 1907 by James E. Casey and Claude Ryan in Seattle, Washington. The company primarily focused on package delivery to retail stores and special delivery mail for the U.S. Post Office. In 1913, it acquired a Model T Ford as its first delivery vehicle. In 1916, Charlie Soderstrom joined Merchants Parcel Delivery, bringing more vehicles to the growing business. In 1919, the company expanded to Oakland, California, changing its name to United Parcel Service. UPS became one of the only companies in the United States to offer common carrier service, expanding to areas up to 125 miles outside the city. In 1930, consolidated service began in New York City and other major cities. UPS supply chain faced direct competition with USPS and the Interstate Commerce Commission, but the common carrier service was applied in cities where UPS could use the service without the authority of the ICC and state commerce commissions. In 1953, UPS resumed air service called UPS Blue Label Air, providing two-day service to major cities along the East Coast and West Coast.
UPS expanded and became a public company
UPS Supply Chain expanded its operations to cover all 48 contiguous states of the United States. In 1975, it initiated operations in Canada, followed by establishing a domestic presence in West Germany in 1976. The company launched UPS Next Day Air Service in 1985 and UPS Airlines in 1988, quickly becoming the 10th largest airline in the United States. In 1991, UPS relocated its headquarters to Sandy Springs, Georgia, and acquired Haulfast and Carryfast, which were rebranded as UPS Supply Chain Solutions. UPS introduced technological innovations such as the “Delivery Information Acquisition Device” (DIAD) in the early 1990s to enhance efficiency by recording and uploading delivery information to its network. By 1992, UPS began electronically tracking ground shipments, followed by the launch of UPS.com in 1994. In 1995, UPS acquired SonicAir to compete with Choice Logistics, and in 1998, UPS Capital was established to support business growth for companies. The UPS Store underwent rebranding in 1999, coinciding with UPS’s transformation into a public company through the largest initial public offering of the century.
UPS supply chain and freight
UPS provides international package delivery services to over 220 countries and territories, extending well beyond the United States. Their offerings are categorized into several service levels: Standard, Worldwide Expedited, Worldwide Saver, Worldwide Express, and Worldwide Express Plus. UPS Supply Chain Solutions (UPS-SCS) encompasses forwarding and contract logistics operations, freight forwarding and distribution, customs brokerage, mail services, and consulting. In April 2021, UPS sold its freight division, which handled less-than-truckload and truckload services in North America, to TFI International, and it was rebranded as TForce Freight.
UPS competitive area
UPS faces competition from major domestic carriers like the United States Postal Service (USPS) and FedEx, as well as regional carriers such as OnTrac and LSO. Additionally, UPS competes with international operators like SF Express, Canada Post, TransForce, Deutsche Post, Royal Mail, Japan Post Service, and various regional carriers, national postal services, and air cargo handlers. Historically, UPS contended with affordable ground-based delivery services like Parcel Post (USPS) and Choice Logistics. In 1998, FedEx expanded into ground parcel delivery by acquiring RPS, and DHL did the same by acquiring Airborne Express. In response, UPS partnered with USPS to launch UPS Mail Innovations, a program where UPS picks up mail and packages weighing less than one pound separately from its main ground network and transfers them to a USPS center or destination delivery unit (DDU) for final distribution. To counter the growth of FedEx and DHL, UPS also introduced “SurePost,” utilizing the UPS Ground network to deliver packages under 10 pounds to the nearest UPS Package Center. The rise of online shopping and environmental concerns has spurred competition from niche carriers and rebranded incumbents. UPS supply chain operates over 119,000 delivery vehicles worldwide, each typically having a lifespan of 20-25 years or more.
Bikes and Cargo airlines
UPS Airlines, the fourth-largest cargo airline in the world, has begun hiring bicycle delivery personnel in Vancouver, Washington, and several cities in Oregon. In 2018, UPS launched a new program in Seattle, Washington, using pedal-assist electric cargo bikes. They also employ Urban Arrow delivery bicycles in Amsterdam. Competing directly with FedEx Express, UPS Airlines operates a fleet of over 260 aircraft. UPS Flight Forward, a subsidiary, received FAA approval for Part 135 Standard certification, enabling the operation of an unlimited number of drones of any size. However, UPS has faced criticism for its treatment of employees, particularly regarding inadequate protections and sick leave during the COVID-19 pandemic. The company has also been criticized for issues such as damaged, late, or mishandled packages. Additionally, safe streets activists have accused UPS of endangering cyclists by illegally parking delivery vehicles in bike lanes.
Environment issues
UPS operates a global flet of 104,900 vehicles, with nearly 7,000 powered by alternative fuels. In 2008, the company expanded its eco-friendly initiatives by ordering 200 hybrid electric vehicles and 300 compressed natural gas vehicles from Daimler Trucks North America. These efforts have earned UPS a “striding” environmental scorecard and the Clean Air Excellence Award from the US Environmental Protection Agency. In 2009, UPS became the first small-package carrier to provide customers with carbon offsets to neutralize greenhouse gas emissions. The company is committed to reaching net zero emissions by 2050.
Conclusion
Same to other good companies in the business world, UPS is doing well in its global supply chain. Above mentioned discussion highlighted the condition in their supply chain management.
Reference:
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3.https://youtu.be/3UmWwcSyR38
4.https://rumble.com/v3946wi-ups-supply-chain-management-a-case-study.html
