Preview

The benefits and the challenges of outsourcing the logistic function

Best Essays
Open Document
Open Document
4101 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The benefits and the challenges of outsourcing the logistic function
Choose an organisation known to you:
1. Describe all the activities to the logistic function.
2. Discuss how the logistic function contribute or can contribute to achieve the corporate objectives.
3. What are the benefit and challenges of outsourcing the logistic function to 3PL 0r 4PL service providers.

1.0. Introduction

Today’s business is more global than ever before. Markets are everywhere and new ones are sprouting up every day. Suppliers shift, supply chains adapt. Customers are more discerning and demanding. And logistics has become the new and most powerful force in business. Logistics is the art and science of getting things exactly where they need to be and when they need to be there. It’s how you reach out to new customers and new markets. Business is more global than ever. Markets are everywhere and new ones are opening up constantly.

1.1 Introduction of the Company
Company History (UPS “the Company”)
Founded in 1907 as a messenger company in the United States, UPS has grown as a corporation by clearly focusing on the goal of enabling commerce around the globe. Today UPS, or United Parcel Service Inc., is a global company with one of the most recognised and admired brands in the world. As the largest express carrier and package Delivery Company in the world, we are also a leading provider of specialised transportation, logistics, capital, and e-commerce services. UPS and the power of logistics can help businesses expand its global reach with express delivery options to more than 220 countries and territories worldwide. In fact, UPS delivers faster worldwide from the U.S. than any other shipper. And since every business is unique, the company offer an extensive range of services designed around your schedule and budget. Everything from UPS Global Freight Services with guaranteed time-in-transit options to UPS Worldwide Express with guaranteed morning delivery times to our economical UPS Worldwide Saver. More than



References: Anton, J. and Petoufoff, N. 2002 Customer Relationship Management – The BottomLine To Optimizing Your ROI. 2nd Ed. New Jersey: Pearson Education Prentice Hall Bowen, D.E., and Lawler, E.E., III. (1992, Spring). The empowerment of service workers: what, why, how, and when. Sloan Management Review. Vol.33. Customer Relationship Management and UPS (2007a). [Online]. Available: (http://www.crm-toolkit.com/CustomerRelationshipManagementUps.html). Customer Relationship Management and UPS (2007b). [Online]. Available: (http://www.crm-toolkit.com/CRMTool.html). Smith, A.D. (2002). Loyalty and e-marketing issues: Customer retention on the Web. Quarterly Journal of E-commerce, 3(2): 149-161. Smith, A.D. (2005c). Exploring service marketing aspects of e-personalization’s impact on online consumer behavior. Services Marketing Quarterly, 27(2): 89-102. Smith, A.D. and Offodile, O.F. (2007). Exploring forecasting and project management characteristics of supply chain management. International Journal of Logistics and Supply Management, 3(2): 174-214. Van Hoek, R.I. and Chong, I. (2001). Epilogue: UPS Logistics - practical approaches to the e-supply chain. International Journal of Physical Distribution & Logistics Management, 31(6): 463-464. UPS e-commerce (2007). [Online]. Available: (www.ec.ups.com).

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Haniefuddin, S.K., Shamshudden, S., & Khadar Baba, S. (2013). Essentials of Logistics and Supply Chain Management . Lulu…

    • 358 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    The United Parcel Service has taken steps to restructure itself from an operations-oriented company into a market driven industry. Recent findings suggested the need to achieve better external customer satisfaction. The steps taken were to improve the overall of all customers that utilize the services at UPS. Other key areas that need improvement are volume logistics and customer logistics. The main priority at UPS is to deliver the package on time. They provide a much-anticipated alternative to the monopoly of the United States Postal Service. This competitor has been unreliable on…

    • 1525 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    UPS information system provides solution for activities related to logistics and supply chain design and management, freight forwarding, customs brokerage, mail services, multimodal transportation, and financial services. In addition, it saves travel time and…

    • 458 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    References: Boulton, W.R. (1999). Auburn University. (A) Retrieved September 17, 2012, from United Parcel Service: Moving at the Speed of Business: http://www.auburn.edu/~boultwr/UPS_Case.PDF…

    • 622 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Financial Analysis-Ups

    • 6764 Words
    • 28 Pages

    UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions and less-than-truckload transportation services. In 2009, the company delivered an average of 15.1 million packages and documents per day throughout the US and to more than 200 countries and territories. The primary business of the company is the time-definite delivery of packages and documents. Besides that, the company also has extended their capabilities to encompass a broader spectrum of service, which known as supply chain service, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction, repairs and less-than-truckload transportation services (UPS, 2010a).…

    • 6764 Words
    • 28 Pages
    Good Essays
  • Good Essays

    Hrm/531 Week 4

    • 715 Words
    • 3 Pages

    Complexity of effective delivery is needed to successfully achieve the company’s goal of providing customers with the best delivery services (Kinicki & Williams, 2016, pg. 513). UPS needs to reduce the complexity of the services to reduce the risk of unexpected failures, such as weather changes. In addition to that, with the growth of the company also comes with the expansion of the level of production and product lines. If the company reduces the level of complexity of services, it will be easier to keep track of production.…

    • 715 Words
    • 3 Pages
    Good Essays
  • Good Essays

    UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.…

    • 1853 Words
    • 8 Pages
    Good Essays
  • Powerful Essays

    United Parcel Service

    • 4233 Words
    • 17 Pages

    1. Executive Summary 2. Introduction to UPS 3. History of UPS 4. SWOT Analysis and Porter’s five forces 5. UPS distribution network 6. Competitors of UPS 7. UPS trade direct portfolio of services 8. Importance of supply chain management 9. The way UPS interacts with its supply chain partners to improve the outcomes for customers. 10. Limitations 11. Features of the company’s operations which clearly reflect common practice in supply chain management. 12. UPS Sustainability Concept Analysis 13. Technologies and information systems used at UPS 14. Asset Recovery and Recycling Management 15. UPS inventory management system 16. Conclusion…

    • 4233 Words
    • 17 Pages
    Powerful Essays
  • Best Essays

    The role of the logistician in the Department of Defense (DoD) acquisition process is one of the most important to the successful life cycle of a system, subsystem, or process. It is the logistician who has the broad, comprehensive field experience necessary to integrate all facets of the acquisition process to ultimately satisfy user requirements in the field, the customer the process is developed to support. Without experienced, competent logisticians involved in the process, the program risks not meeting warfighter needs and ultimately failing the American public in our protection.…

    • 2553 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Offshore Outsourcing

    • 921 Words
    • 4 Pages

    RM needs to contract with an offshore firm to create a centralized data base system that will track RM's historical and current sales. A business to business system should also be created so that RM can order materials from its vendors. Below are advantages and disadvantages to outsourcing this project offshore.…

    • 921 Words
    • 4 Pages
    Better Essays
  • Good Essays

    In the package delivery business, information technology has transformed the industry by allowing companies like UPS to operate in a near real time environment. The speed of delivery has increased through the use of computer systems which connects companies directly to their customers. According to Laudon (2013), by utilizing technology such as bar-coded labels and handheld communication devices like the UPS Delivery Information Acquisition Device (DIAD) companies can plan for the most efficient means of delivering a package based on a customer’s needs before that package is even picked up. Packages can even be tracked from pick up to delivery by customers using information transferred from a company’s tracking systems to corporate Internet websites. These advancements through the use of information technology have reduced the time it takes to deliver a package from days to, virtually, whatever a customer’s schedule dictates.…

    • 437 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Good afternoon, in today’s agenda, I would like to bring your attention to the benefits of internal and external aircraft maintenance. As studies have shown that the cost benefits are marginal to maintain the aircrafts internally, the company is looking into contracting this process to external vendors. I believe most of you are wondering why we are planning on such move, let us look at the possible factors between internal and outsource of our aircraft maintenance process.…

    • 1144 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Ups Research Paper

    • 3990 Words
    • 16 Pages

    In 1907, a 19 year old entrepreneur James E. Casey and his partner developed a business for the Seattle, Washington area that provided quality messenger services. Within a century, the company managed to globalize the industry of delivery services along with a name many have come to know - UPS. Although their primary business is the time-definite delivery of packages and documents, they have also extended their capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction and even repairs. UPS is also the leading provider of less-than-truckload transportation services. The inner workings and strive for success shows how this fortune five hundred company strategically built this empire from the ground up, and in the process cloned the famous marketing slogan: “What can brown do for you?”…

    • 3990 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Coyle, J., Langley, C., Gibson, N., Novak, R., Bardi, E., (2009). Supply Chain Management; A Logistics Perspective. Ohio: South-Western Press. 9th Ed..…

    • 810 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Before the $42 billion company, Universal Parcel Services (UPS) grew into a worldwide name, it was started as a small messenger company in 1907 by two teenagers, Jim Casey and Claude Ryan in Seattle, Washington with just $ 100. Today The United Parcel Service (UPS) delivers more than 15 million packages a day to about 6.1 million customers in 200 countries around the world, making it the world’s largest package delivery company. UPS’ slogan “What can Brown do for you” emphasizes the company’s ability to provide services to almost anyone in the world on their door steps. With such a giant competitors like USPS, FedEx and DHL, UPS has had the opportunity to reinvent itself throughout the years and continues to lead the industry of logistics, supply chain management and e-commerce. However, reinventing continuously a 42.6 billion dollar corporation is obviously not an easy task. The company made these remarkable achievements by a continuous process of evolution and growth and worked upon the strategies made by the expert’s planning and designing a road map for them.…

    • 1107 Words
    • 3 Pages
    Good Essays