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Logistics and operations management
Logistics and operations management
Principles of logistics management assignment
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When you are the world’s largest package delivery company, the way you communicate can determine the well-being of your success. Companies must have good communication skills to be successful. Two of the main people companies should be able to communicate with are their employees and their customers. Ups does a great job of communicating with both of these because they have learned how to by developing their technology to make information much easier for the people to get. This is not something that you can just do over night. Since Ups has been in business for over 95 years, they have learned what it is people want and how to provide them with what they need in the simplest manner. Doing this is what is keeping them ahead of the competition …show more content…
year in and year out. Ups delivers millions of packages a day.
This seems nearly impossible but when a company is well organized and has excellent communication throughout the company, it makes shipping these packages a lot more simple. On a regular basis UPS has communication meetings between operation managers, and first line employees (Soupata, 2005, p. 97). Other than these meetings, employees communicates mainly through a communication channel called, UPSers.com. This allows employees to stay up to date on things going on throughout the company and allows easy access to contact information for the person of interest. They can also use UPSers.com to check the benefits the company provides for them.
“UPSers.com includes links to the medical, dental, vision, and prescription carriers, as well as other benefit providers for U.S. employees. It also includes links to the administrator for the UPS Savings Advantage (401(k) plan) and the Discounted Employee Stock Purchase Plan. There is also a site where employees can view executive speech sum-maries and biographies to better understand who the UPS leaders are and what they are saying to the public about the business (Soupata, 2005,
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p.97).” Another way communication is a main factor is with the employees that actually transport the packages from place to place.
The company uses a distribution system called the hub-and-spoke structure (Rodrigue, 2007). This process starts by them first collecting all of the packages through drivers assigned to specific routes. They have people who monitor traffic and road conditions so they can keep transportation time as low as possible. This first step usually consist of state to state travel. This is so specific states can get dropped off at the nearest hub so they can start to undergo the second part of the process. The start of the next step is the packages get unloaded and then sent up to the sort aisle to be sorted to the corresponding belt. This process usually happens quite fast because the unloaders and sorters have to move at 1,200 packages per hour. After the sorters send the packages to the corresponding belt, they are then sent to be loaded on a truck. Not all packages are sorted correctly so when the loaders get a miss sort they put it on a belt that sends it back to the sorters to be resorted. Once the truck is full it is then sent off for the last step of the process. The last step off the process is the dropping off of packages at its proper location. This process seems quite simple but it took lots of planning among upper level employees to get this system to
work. After Ups implemented Track my package it changed the game. This allowed people around the world to follow their package step by step to its destination. It is not just provided for the person receiving the package but the person shipping it too. This Web tracking informs you of the estimated delivery date as well as the different distribution centers its stops by on the way to your home. Another benefit it offers is that it makes it easy to reschedule a delivery or you can even tell them to hold the package at the nearest Ups location. Customers have been using this ever since they found out it was a thing. It is so popular that the ups website in 2007 received an average of 18.5 million request to track their package a day (Rodrigue, 2007). This not only makes life easy for customers but decreases the stress of employees. This is because they do not have to worry about customers always calling them asking where their packages are. With 15.6 million packages be transported daily, it is surprising that it is that easy to use. All you do is put your tracking number in the website and then it will show you the breakdown n of where your package has already been and when it will eventually arrive at its destination. E-commerce is the newest strategy Ups has started using. This happened in 1994 when they realized that customers were starting to use their services more than companies. As stated by Mitchell Levy, “They were the bridge between the physical and electronic world”. This was because ups was the main package company shipping packages that were ordered online by customer and delivering them to their door step. Ups started right away on increasing their technology because they knew it would play a key role in helping out customers. Plus, they needed to keep up with the data of the millions of packages being shipped daily. They were open to help the new B2C, Business to consumer, Companies who relied so heavily on them to ship their product. “UPS also offered a set of transportation APIs called the UPS OnLine Tools that allow businesses to integrate tracking, rating, address validation, and a number of other valuable functions into their Web site. Now, through their eLogistics service, small B2C companies (as well as large companies) can have their own virtual logistics department hosted at UPS (Levy, 2001).” Ups has done so much for the world over the 95 years it has been in business. The two most important things to ups are it employees and the customers it tries to satisfy every day. They have continued to improve their technology and services to keep their customers satisfied and loyal to their service. Without the help of ups the world would not be the same and for that we all say thank you.
The Shipping Manager’s activities required a different approach. He used coordination through formal hierarchy. The Shipping Manager assigned the Team Leader tasks that required more supervision and resources. He gave an order to the Team Leader who divided it among his Pullers. The Pullers would enter the tunnel, assemble the order from the various coolers and send it down the track to the awaiting loaders. The Loaders would remove their assigned color-coded stacks and put them in the appropriate trucks for delivery. This process did not require special training but it did require more direction from the Supervisors than the warehouse functions.
AWG is faced with logistical challenges similar to others in the industry. The largest logistical challenge on a daily basis at AWG is their finite timeline between restocking and outgoing shipments to retailers. Any deviation from the schedule due to an extenuating circumstance (labor strike, weather event, ...
In early August of 1997 the United Parcel Service (UPS) had a predicament on its hands, a teamsters strike. UPS, the world’s largest package distribution company was coming off a year [1996] in which they reported sales of $22.4 billion. UPS Employed 75,000 management and non-union employees compared with 185,000 teamsters who are part of the AFL-CIO that were going on strike. The teamsters rejected a contract extension offer from the company leaving the fate of millions of packages carrying everything from lobsters to laser printers up in the air (Johnson).
As a kid, I remember asking my parents “How does Amazon do this?” and I remember them saying that I will need to major in a topic that will help me understand this process. Every time I ordered an item from them, I would think about the process of obtaining the packages using robots, packing the items safely, and then shipping them off to customers. This is an example of logistics and efficiency at its finest. As a junior, I still do not understand this process fully, since I am currently taking IDIS 240.
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
This rating as well as many others factors have lead to the success of the United Parcel Service. The current status of the company reflects the strength of the their competitive position. The leaders of the current which include James Kelly, Michael L. Eskew, and John A. Duffy have set an example for anyone who is interested in management as a career. Their tactical maneuvers are first rate. This company succeeded because of the drastic communication advances. The customer is ultimately satisfied with the reliability of UPS to deliver on time. This is the marketing factor that sets UPS a step above the competition All decisions were made in the respect that the company would continue to bring the customer more than they expected. In turn United Parcel Service is an extremely profitable corporation. The environment provided by UPS keeps customers, employees, and managers working hard to keep up the high standards set by todays’ customers.
...y activities of packages and track movements. Being able to track movements allows UPS to expand its ability to properly measure the cost of products. Product cost can be measured via work measurement and package movement.
United Parcel Service Inc (UPS) started out as a messenger company in the United States; UPS has grown into a multi-billion-dollar corporation by plainly focusing on the goal of enabling commerce around the globe (UPS, 2013). Overnite Corporation is a leading interstate trucking company serving all 50 states. The states also include Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. The company transports a variety of products such as machinery, tobacco, textiles, plastics, electronics, and paper products (Overnite Corporation History, 2013).
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
FedEx Express invented express distribution as early as 1973 and till today remains the leader on the market providing rapid, reliable and time-definite delivery of packages, documents and freight within one to three business days. FedEx works in more than 214 countries serving more than 90% of the world gross domestic product through customer-cleared and door-to-door delivery. FedEx's extensive air route authorities and transportation infrastructure combined with leading-edge information technologies makes it the largest transportation company in the world. Currently, FedEx employs more than 134,000 employees operating in approximately 53,500 drop-off loc...
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
Over the years, FedEx has continued to strengthen its fleet by acquiring similar business in other countries, and they continue to do so. Sometimes these are the only major competition in that country, which leads to FedEx being a super power in those areas. FedEx has a strong marketing concept that allows them to build their products together and add value to their products and suites. However, sometimes FedEx has not researched successfully in the past, which caused loss of niche parts of the company including their fax services and the intra-European delivery services. Looking forward, FedEx has the opportunity to continue to grow their business with the advancement of other economies growing since FedEx has such a vast empire already established. This will allow them to continue to have a competitive advantage. FedEx will need to consider its threats in order to continue its success. The threats that FedEx has to face are not only outside competition from other carriers and delivery providers and rising operation costs but also can be seen from developing technology. As more people rely on email and instan...
From the manufacturers’ warehouse to the shelves, the business must orchestrate a symphony of the right products to the right places at the right times. Walmart serves customers and members more than 200 million times per week in retail outlets, online and on mobile devices. The company is able to offer a vast range of products at the lowest costs in the shortest possible time (Chandran, 2001). The main reason for this incredible growth of Walmart is because its distribution centers are highly automated.
The year is 2018. More and more businesses are already enhancing their productivity through the use of technology. Courier service businesses have not been left behind too. These businesses have been adopting the use of courier dispatch software.