United Parcel Service

1
United Parcel Service

• Prepared by
• BC Inc.
• Michelle Gluss
• Kristin Korzekwa
• Janae Sickmeier
• Benjamin Ziska

2
Introduction

• Company Information
• Competitive Advantage
• UPS Delivery Process
• Recommendations

3
Company Information

• 29.8 billion in revenue (2000)
• 15.8 million daily package deliveries
• 152,500 vehicles on the road every day, 238 jets,
  384-chartered aircrafts
• 1,333 domestic flights
• 1,301 international flights

• 1,748 facilities with 368,000 employees
• Serving 265 countries
• Since 1984, have served every address in U.S.
• UPS website
• Receiving 40 m hits per day

4
Competitive Advantage

• MAXI Code
• Honey comb symbol containing tracking information

• Hand Scanner
• Increases efficiency
• Move and Scan simultaneously

5
Competitive Advantage, Contd

• Delivery Interactive Acquisition Device
• Cellular/digital keypad
• Used by drivers

• On-line Tracking
• www.ups.com
• Spoke and Hub
• Strategic Location of Distribution Centers
• Market Watchers
• Fuel and Real Estate

6
Process and Technology

• Pickup
• Just-in-Time
• Call 1-800 number
• Dispatch information to driver in area
• Businesses
• Large volume exchangers have a tractor trailer
  on-site
• Low volume exchangers packages picked up/dropped
  off by driver
• Customer drop off
• Convenient community location

7
Unloading

• 10,000 per hour at Columbus facility
• Maxi Code scanned by hand scanner
• Packages sorted by size and destination

8
Process and Technology

• Small Packages
• Automated System
• Package assigned to cell on rotating belt
• Cell Corresponds to Chute
• Manual System

• Large Packages
• Immediately processed
• Belts transfer to push/pull workers
• Loaded onto trucks

9
Process and Technology

• Local Packages
• Separated to box-line sort aisle, processed
  manually
• Workers sort packages by street name
• Placed in colored bins

• Package Delivery
• Local
• Loaded from colored bins
• Non-local
• Sent to hub, spoke, airport, or train

10
Recommendations

• Increase Automation
• High speed camera
• 33 reduction in process time
• Computerized local sort
• Save labor hours and money

11
Question Answer

• We will now open the floor to any questions