By numbers, United Parcel Service, Inc. (UPS) which established in 1907 with starting capital, $100, is considered now as the world 's largest package delivery company, UPS transports some 16 million packages and documents per business day throughout the US and to more than 200 countries and territories. Its delivery operations use a fleet of about 100,000 motor vehicles and about 600 aircraft. In addition to package delivery, the company offers services such as logistics and freight forwarding, through UPS Supply Chain Solutions, and less-than-truckload (LTL) freight transportation, through UPS Ground Freight. (LTL carriers combine freight from multiple shippers into a single truckload.), and it has a huge number of employees, about 425,300 Worldwide (358,000 in United States and 67,300 International). It serves 7.9 million customers daily (1.8 million pick-up, 6.1 million deliveries). The last number is the revenue that UPS posted the last year and it was $49.7 billion.
UPS’s problems and challenges:
Experience:
UPS started its activity with no experience; the company established by two young teenagers, Jim Casey (19-year-old) and Claude Ryan (18-year-old).
Competition:
UPS competitors are primarily in the Express Delivery Services industry, and UPS has strong competitors like FedEx, TNT, DHL, and Airborne express. Those competitors are trying to provide customers a high level technology with lower cost, and create a new quick safe delivery method.
Cost:
UPS puts higher shipping costs on its franchisees because UPS manipulates the dimensional weight system used to calculate package size and weight for shipping.
Technology:
UPS needed a more efficient way to track the shipments.
Others:
They face daily problems are not supposed to happen, like lost packages, damaged packages, and uncollected payments.
Solutions:
UPS has used the same strategy for over 90 years. Its strategy is to provide the “best