Ups Case Study: Inside Out
BPTrends ▪ September 2011
UPS Case Study
UPS Case Study: Inside Out
Dawson Wood
Business Process Manager
UPS
UPS was founded in 1907 in Seattle, Washington and is a large, pure-process company.
Essentially, everything that UPS provides is process-as-a-product. Our 406,000 employees working in 2,750 operating facilities and 62,000 retail access points must execute those processes flawlessly. The net result of our process focus is the daily movement of 15.1 million package and documents, including 2.2 million just by air and 2.3 million internationally. On an annual basis, UPS delivers 4 billion packages and documents through a fleet of approximately
100,000 package cars, vans, tractors, motorcycles and 233 UPS-owned aircraft.
Figure 1 – UPS operates the World’s 8th largest airline
There’s a reason why so many statistics are being cited. These enormous numbers represent a monumental process challenge, and the ongoing globalization of business will move each of these numbers upward. Add to this the trend for many enterprises to subcontract most or all of the manufacturing and assembly of their products to specialized firms wherever in the world that it makes sense, and the opportunities are clear for UPS in providing logistics.
Having an enormous package delivery network offers UPS an opportunity to create even greater value for their customers by using the network to manage the integration of information, transportation, inventory, warehousing, material handling, packaging and even the security of packages. This logical move higher in the value chain means offering integrated solutions that are an excellent match for the challenges of increasing globalization.
Copyright © 2011 UPS. All Rights Reserved.
www.bptrends.com
1
BPTrends ▪ September 2011
UPS Case Study
The Problem
For UPS to take advantage of these opportunities, we knew we must move from a primarily USbased, small-package-focused business to a transparent,
UPS Case Study
UPS Case Study: Inside Out
Dawson Wood
Business Process Manager
UPS
UPS was founded in 1907 in Seattle, Washington and is a large, pure-process company.
Essentially, everything that UPS provides is process-as-a-product. Our 406,000 employees working in 2,750 operating facilities and 62,000 retail access points must execute those processes flawlessly. The net result of our process focus is the daily movement of 15.1 million package and documents, including 2.2 million just by air and 2.3 million internationally. On an annual basis, UPS delivers 4 billion packages and documents through a fleet of approximately
100,000 package cars, vans, tractors, motorcycles and 233 UPS-owned aircraft.
Figure 1 – UPS operates the World’s 8th largest airline
There’s a reason why so many statistics are being cited. These enormous numbers represent a monumental process challenge, and the ongoing globalization of business will move each of these numbers upward. Add to this the trend for many enterprises to subcontract most or all of the manufacturing and assembly of their products to specialized firms wherever in the world that it makes sense, and the opportunities are clear for UPS in providing logistics.
Having an enormous package delivery network offers UPS an opportunity to create even greater value for their customers by using the network to manage the integration of information, transportation, inventory, warehousing, material handling, packaging and even the security of packages. This logical move higher in the value chain means offering integrated solutions that are an excellent match for the challenges of increasing globalization.
Copyright © 2011 UPS. All Rights Reserved.
www.bptrends.com
1
BPTrends ▪ September 2011
UPS Case Study
The Problem
For UPS to take advantage of these opportunities, we knew we must move from a primarily USbased, small-package-focused business to a transparent,