Logistics Design Alternatives Essay

863 words - 4 pages

The United Parcel Service is one of the largest companies in the global courier delivery service industry, with a net income of about $3 billion and revenues exceeding $53 billion. Headquartered in the United States, a large part of UPS’s market share and revenues come from the business it conducts in Europe. The logistics design of UPS has three distinct functions, consolidation, distribution, and fragmentation. Consolidation is the collection of parcels to then be sent to distribution. Distribution works on a hub-to-hub basis with distance determining what mode of transportation will be used (Air or Ground). Fragmentation is the final design step in the UPS logistics design, combined ...view middle of the document...

It is very clear that UPS continues to grow and progress in the improvement of their vehicle and airline fleet through the implementation of green technology. Environmentally friendly technology is revolutionizing not only the logistics world, but helping to reduce the human impact on the earth we all share.
The Fed EX Corporation, The United States Postal Service, and the Deutsche Post AG (DHL) are the top three competitors in the logistics world for the United Parcel Service. Each one of these companies has become very successful by implementing sound and efficient logistic practices throughout their businesses. Each one of UPS’s competitors has a lot to offer depending on the services and needs that their customers have and desire. Trying to figure out what logistic advantage that the United Parcel Service has over it competitors, we have to look at the many different aspect on what and how each of these businesses provides services to their customers. Shipping costs, customer service, and software are just a few of the functions that we can look at when comparing UPS to their competitors. As we all know, each one of these functions play an important role in the logistical competiveness of a supply chain, so what key logistical advantage does UPS have over the others? Customer service stands out as a key logistic advantage over their competitors. For the first time in years, UPS has outscored FedEx on a customer service survey. In June 2011, the American Customer Satisfaction Index released a report giving UPS a 4 percent gain to a score of 85, while FedEx dropped 2 percent to a score of 83 (Roggio, 2011). Excellent customer service has many...

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