“What can

brown do
for you” Group 4:
Lakshay Agrawal
Lavish Arora
Mritunjay
Kushagra
Prakhar Pandey
Prachi Priya
Neenu Mohandas
Nishant Maithani
About the company
 Founded in 1907, UPS now
develops service-oriented
technologies using artificial
intelligence (AI), the Industrial
Internet of Things (IIoT), and
advanced data analytics. The
company’s logistics experts and
engineers collaborate with
technicians, mathematicians and
data analysts around the globe to
simplify complex supply chain
problems.
Contd.

 The United Parcel Service (UPS) delivers more than 15.6 million
packages a day to about 6.1 million customers in 200 countries around
the world, making it the world’s largest package delivery company.
 UPS is headquartered in Atlanta, Georgia and operates primarily in the
United States with about 434,000 employees.
 UPS’ slogan “What can Brown do for you” emphasizes the company’s
ability to provide services to almost any one in the world, at any
address.
 Before the $42 billion company grew into a worldwide name, it was
started as a small messenger company in 1907 by two aspiring
teenagers, Jim Casey and Claude Ryan in Seattle, Washington with just
$100.
 Top competitors of UPS include Federal Express (FedEx), DHL
International and the United States Postal Service.
Technology used by UPS

 Some of the breakthrough achievements that UPS unveiled in the last year are
on display at the company’s facilities around the world, including at its new
state-of-the-art regional hubs in Atlanta and Salt Lake City. They include:
 UPS Nav, a significant update to UPS’s On-Road Integrated Optimization and
Navigation (ORION). UPS Nav provides UPS drivers with a new level of accuracy
and precision that’s not available with conventional GPS, enabling the
company’s drivers to operate at top efficiency while improving their customers’
experience.
 Network Planning Tools (NPT) that combine advanced analytics, artificial
intelligence and operations research to more efficiently coordinate ground, air
and rail traffic between hubs to make the best use of sortation capacity. NPT
empowers UPS to offer more reliable service to customers.
Contd.

 Mobile tools that enhance on-road productivity and new delivery

helper apps that speed training for more than 50,000 seasonal
delivery personnel. The tools also help them provide better customer
service.
 Dynamic Sort Instruction (DSI) transforms a highly complex package
sorting process into a simple scan, listen and sort process. DSI
increases employee productivity and shortens the training time for
many of UPS's new and seasonal employees who work inside
facilities.
 Harmonized Enterprise Analytics Tool (HEAT) for hub operations that
creates more accurate forecasts about the package volume that
will need to be processed within UPS facilities. HEAT generates
network efficiencies and enables the company to provide top-
notch customer service. Its functionality will advance in 2019.
UPS System
 Signature Tracking
 Signature tracking is a program which enables logistics services providers to rapidly obtain the
necessary information on proof of delivery; namely the information necessary to collect funds
through a proper invoice.
 This program allows logistics services providers to retrieve this information in seconds (instead of
hours or evens days in the traditional approach) through digital signatures and full addresses;
hence, increasing accessibility of COD related information, reference number and all tracking
information.
 Rates And Service
 Rates and service option is a user friendly and customer beneficial tool allowing customers to
generate specific shipping charges before acquiring logistics services. This program gives
customers required flexibility and control of online purchases, allowing the customer to pick
which shipping method meets their needs in time and price.
 This option also allows for a user-friendly layout to search for service charges or for each shipping
option along with pull down menus for easy operation. Rates and services options are available in
two versions; namely HTML that emulates the page layout found on the UPS website and XML,
which allows the customers to customize a format to suit web site or applications design.
 UPS Return Services
 Returns management (or reverse logistics) is becoming an integral part of
many companies. From a customer’s perspective, product returns are one
of the greatest detriments with online purchasing, more progressive logistics
services providers, such as UPS, have incorporated a number of CRM-
related programs to address this area of reverse logistics.
 At UPS, for example, they have adopted several reverse logistics programs;
namely UPS Return on the Web™, UPS Returns Plus™, and UPS Return™.
These programs were designed to significantly reduce the hassle of
returning and were designed for the novice to utilize basic aspects of
reverse logistics.
 UPS Returns on the Web™ is a program that was initially designed to be a
self-service return solution for customers who wish to automate their returns.
The consumer, including the delivery of UPS Return label via a browser,
completes the return process completely online.
 UPS Returns Plus™ is a program option that allows merchants to provide
convenient pickup options for prompt returns.
 Expense Management
 Expense management is an interesting program that contains two relatively innovative solutions that
allow a business to run more efficiently (UPS Campus Ship™ and UPS Flat File Bill Too™). The program
allows the company to gain control over and visibility into all the company’s shipping activities.
 UPS Campus Ship™ is a trademark program of UPS that allows multiple users within an organization to
ship, track and other features from any computer that is on the Internet.
 This program also allows management the power to control shipping service levels by the various cost
centers. Other features allow management to create company wide address books, query, sort, and
export shipping information.

 B2B And B2C Strategies

 In terms of competitive logistics services providers, there are some major key differences between B2C
and B2B that must be considered; namely B2B traffic volume is considerable larger, B2B payment method
is typically by purchase order (PO), and B2C payment method is usually by credit card.
 Other key differences between logistics service providers B2C and B2B activities include: negotiation is
more common in B2B and the reporting needs are more advanced; relationships and supply chain
partnering are much more important in a B2B environment; switching costs are typically higher in B2B,
and for many larger logistics companies the delivery destination in B2B e-commerce is typically
commercial.
 In B2B markets, some logistics service providers are forced to scale down in personal and overall
expenses, while other companies are looking for the best solutions to streamline time and efficiency.
Modern marketplaces are usually very fast paced, with technology being a major IT solution to
streamline operations.
HOW UPS WORKS ?
 PORTER’S FIVE FORCES

Low Strong Brand image

Labour Problem THREAT OF
High Capital Expenditure
Capacity NEW ENTRANT
Economies of Scales
constraints Highly Trade Tarrifs and International
Fuel cost Consolidate regulations
High Industry
High
POWER OF COMPETATIVE POWER OF
SUPPLIERS RIVALRY BUYERS

Moderate
Low switching cost but
THREAT OF

There are no real

SUBSTITUTES customer too small to
substitute for air Low have individual
frieghts advantage
Challenges

 To make strategic technology group from a small strategic planning

process. This was basically required for finding major gap in
technologies.
 Formation of scenarios for future strategic planning.
 To manage the strategy road map and implement the centennial plan.
 To tackle the implication for technology and infrastructure initiatives,
growth strategies and options, and workforce development at both the
global and region level.
 Since most managers in the company were focused on short term
goals. It was difficult to keep the perception in mind that this was not
about UPS but rather how the world affected UPS.
 To resolve the strategic integration responsibility
STEPS TAKEN BY UPS TO FACE THE
CHALLENGES
 As opportunities arose, UPS had shifted from message delivery to package
delivery.
 Several steps that unfolded over a period of years were involved in the
implementation of the new strategic process. The senior management
completed a crucial second step two years later in 1999,when they drafted the
UPS charter, redefining UPS’s mission and purpose and providing a detailed
statement of the company’s values and strategies.
 UPS moved from “leadership in package distribution” to “enabler of global
commerce” due to the new mission and purpose.
 The “centennial plan”, the third step in the strategic process was formed from
the outcomes of that meeting. As UPS’s version of a five year strategic plan, it
was designed to guide the company to its centennial anniversary by providing
themes and broad , overarching direction.
 “Strategy road map”, which was the fourth step in the strategic process was
developed to take the centennial plan to an executable level of detail.
Feasible Solutions

 Improve channel of consulting service to be easier to access by customer, e.g.

simplify sale process, provide guideline and best practices
 Develop sales force to be expertise, initiate completely supply chain services
training program. Intentionally develop in
 Module 1 : UPS Products available (Intranet or web-based system)
 Module 2 : Services providing of each Industries
 Module 3 : Solution selling skill a salesperson should be expert in only 2-3
products/service
 Develop new Incentive system to consistent with knowledge evaluation result,
motivate sales force to develop themselves
 Not only selling skill but service capability shall be developed, Sales force should be
able to provide service for customer in basic cases, it will improve customer
satisfaction
Conclusion

 UPS has done a remarkable job of leveraging their core competencies for the
new world of e-commerce. They have figured out how to deliver their core
business services in new ways, while leveraging their tremendous infrastructure
assets.
 They haven't forgotten where they came from. In that they have managed to
preserve their company culture. It has served them very well in promoting the
creative thought necessary to come up with new ways to do business and grow
the company.
 They were brave enough to change the vision, starting at the top, and
committing themselves to it from the top all the way down through every
employee of the company. They managed to do it quickly by making changes
in their processes and organizational structure
 UPS has been aggressive in finding new revenue streams with existing and new
customers. They understand not only their customers and related needs, but
have also figured out ways to deliver more value. They have expanded the roles
they can play in the overall value web by leveraging their infrastructure and
expertise.
THANK YOU