| The economy is declining but companies like the | | | | throughout Europe and beginning to move into Asia. |
| United Parcel Service are making ends meet and | | | | They are growing and beating out small competitors. |
| exceeding expectations. They have utilized the | | | | When the global economy is expanding it is important |
| growth in the global economy, better supply chain | | | | for American businesses to get out there and |
| management techniques and customers attempting | | | | conquer the market before others. |
| to reduce costs by sending low priced packages. UPS | | | | Reduction of Costs: UPS continually is looking for |
| has become a victor in an arena of losers precisely | | | | methods of reducing costs. They track fuel |
| because it has implemented a winning strategy. | | | | efficiency, labor costs, and other overhead to ensure |
| UPS has experienced two major upswings in the past | | | | they are reducing these expenses as much as |
| few years. In the third quarter of 2007 they had an | | | | possible. Every organization should be focusing on |
| increase of net income of $1.08 billion dollars and over | | | | both long-term and short-term costs. |
| a year ago they had a $1.04 billion dollar upswing. This | | | | Flexible Labor Costs: In the United States labor costs |
| was after their 46 million dollar restructuring program | | | | can be a huge factor in whether or not a company is |
| in France to improve their supply chain. Other | | | | profitable. The automotive industry has been hit hard |
| companies are not having nearly the same upswing | | | | by unreasonable labor and benefit costs. UPS is |
| or growth which makes UPS unique. | | | | utilizing flexible or seasonal labor that is hired for peak |
| UPS Chief Executive Mike Eskew state with some | | | | periods. 60,000 employees will be added in the United |
| happiness, "UPS turned in a solid performance in the | | | | States to help with holiday packages. |
| face of a slower U.S. economy". This proves that | | | | Supply Chain Management: In the transportation |
| diligent American companies have an opportunity to | | | | industry supply chain management is of crucial |
| increase profits and continue to grow despite many | | | | important. If packages are shipped via long routes, |
| of the difficulties that American companies face. | | | | old machinery, inability to track, etc... there is a good |
| UPS has a number of strategies that it is using to | | | | chance that costs will raise and profits will decline. |
| achieve success that many businesses would be wise | | | | When companies investing in their supply chain as |
| to pay attention to. These strategies are in the field | | | | UPS did in France they often are able to save millions |
| of global expansion, reduction of cost, flexible labor | | | | of dollars while increasing efficiency. |
| costs and efficient supply chain management. The | | | | UPS should be set as a standard of how companies |
| concepts make sense and are grounded in very basic | | | | can beat the declining economy problems of the U.S. |
| principles of understanding what their main objective | | | | When other companies are laying off workers UPS is |
| is (increasing shareholder wealth). | | | | putting more people to work. While business is |
| Strategy Concepts: | | | | becoming more difficult to conduct in the U.S., |
| Global Expansion: UPS has been tapping into world | | | | companies like UPS are creating more efficiency and |
| markers much more successfully then many other | | | | are reaping the rewards. Companies have the |
| organizations. They have their own aircraft division | | | | opportunity to learn from UPS and develop their own |
| that delivers packages; they are spreading out | | | | growth strategies. |