Operations Management: UPS Case Study - Essay Example

Next, the study discussed the various periods of transitions and how it affected the overall organization. The study will also throw light on financial benefits incurred by the organization during this transformation phase. As sustainability and clean environment issues are becoming a major aspect in every organization, the study has also evaluated the contribution of UPS in preserving environment though sustainability practices and future planning. The final topic will evaluate the future strategy planning of the company in order to remain environmental waste free and achieve sustainable business growth in this highly competitive environment.

At the end few recommendations have been provided for UPS for further development. Contents Executive Summary 2 Introduction 4 History of Logistics and its Evolution 4 Logistics Maturity and Milestones Achieved 4 Logistics Model before UPS in 2011 6 The Transition at UPS 7 Key Drivers for Logistics Transformation at the Company 7 Process Undertaken 8 Key Transformational Milestones 8 Impact on the Strategy and Business Model at UPS 9 Financial Benefits of the UPS Transition to both customers and UPS 10 Sustainable logistics at UPS 11 Logistics is Sustainable 11 Sustainable Logistics Direction of the Company 12 References 14 Introduction In the year 1907, James Casey borrowed 100 dollars from a friend and by partnering with Claude Ryan established the American Messenger Company.

Even though a large number of companies were operating as messengers during that time, Casey recognized the need for a low cost customer service. The slogan of the company “Best Service at Lowest Rates” is a reflection of the founder’s thinking. In the year 1919, the name of the company was changed to United Parcel Service (UPS) and the services were expanded from Seattle to Oakland. UPS is also known as “Big Brown”. During this time strict customer centric ethics were maintained in order to adapt the ever changing environment and satisfy customer demand.

The capabilities of UPS portfolio have always been in development stage with the objective of constantly improving the service offerings. In order to adapt to the changing expectations and needs of the customers, the company have been evolving its service strategies continuously. The company capitalized on first mover advantage during its early operations. This was done by the use of motor cars and motor vehicles to deliver parcels and packages. During that time it was a giant leap from horse coaches and bicycles.

In terms of capabilities and service, UPS is the current industry leader. The company services to over 9 million customers on a daily basis and conducts nearly 16 million deliveries and pick-up tasks each day. More than 400 thousand employees coordinate the logistics challenge and the company is operational in 220 countries with nearly 3000 facilities. UPS has its own aircraft for operations and the ground operations are undertaken by more than 1 lakh delivery vehicles and other specialized transportation modes such as motorbikes and boats.

History of Logistics and its Evolution Logistics Maturity and Milestones Achieved Logistics is a combination of activities needed for the storage, handling and transportation of production inputs and final products from manufacturer to