Ups Capstone

UPS Capstone

Tim Dall

Bellevue University

Logistics Management

Lisa Juricek

Abstract

United Parcel Service (UPS) was founded, in 1907, by Jim Casey in Seattle, WA. In its 100 years, UPS has grown into one of the leading global transportation companies. Their services include small package delivery, financial, logistics, freight, and much more. This capstone will describe UPS’s history, organizational structure, marketing strategy, an economic analysis, and its impact on globalization. The information was gained by research of websites, annual reports, books, and personal experiences based on 14 years within the organization.

Introduction

In 2003, United Parcel Service when about changing their name to the acronym UPS. The reason they wanted to do this was because they were no longer only a parcel delivery service. They had evolved into an eclectic global company. They donned a slogan, which they still use today, entitled “What can Brown do for you?” Their vision specifically states in their annual report, they want to “synchronize the world of commerce and manage the needs of their customers supply chain.”

UPS has many subsidiaries which allow them to synchronize commerce. UPS has the following companies under their umbrella:

• UPS Store

• UPS Air Cargo

• UPS Capital

• UPS Consulting

• UPS Express Critical

• UPS Freight

• UPS Logistic Technologies

• UPS Mail Innovations

• UPS Professional Services

• UPS Supply Chain Solutions

As of yearend 2006, UPS had 425,300 employees worldwide. They had over 7.9 million customers who tracked up to 15 million packages online daily. They had over three thousand operating facilities in the world, and the ninth largest airline with included 268 aircraft. They had 93,600 package delivery vehicles, 6300 tractors, and 21,800 trailers. (Annual report, 2007) With all the different facets within UPS the network which can get things done, and the people to do the work, the amount of services they can offer a customer is astounding.

UPS strives to stay ahead of the competition in all areas. Technology is one of the biggest areas in which they have done this. Whether it was with automobiles, or hand held computers; they attempt to stay in front so that customers do not have to look elsewhere. By staying ahead in technology; UPS can also take advantage of cost savings when available.

According to UPS’s annual report for 2007, they generated over 49.6 billion dollars in revenue. 62% was from domestic package service, 21% from international package service, and 17% in freight and supply chain services. This paper will address how UPS has been able to sustain this for a century. This paper will address UPS’s history, organizational structure, marketing strategy, economic analysis, and its impact on globalization.

History

In 1907, James E. (Jim) Casey, along with Claude Ryan, borrowed one hundred dollars from a friend, and started a delivery service called American Messenger Service (AMS). The company started in the basement of a saloon in Seattle, WA. AMS mostly dealt with the delivery of telegraph messages, via bicycle, from Western Union. According to Mike Brewster and Fredrick Dalzell, Jim only hired clean-cut boys, where he knew their families. He wanted to know the people which would be dealing with his customers. He wanted to make sure AMS started off on the right foot by being known for dependability and honesty. Jim’s slogan, according to UPS’s website, was “best service and lowest rates.” In 1911, Jim’s brother George took Claude Ryan’s position with the company, and he had a lot to do with the laying the groundwork of AMS.

According to UPS.com, AMS changed their name when Jim and George merged forces with a motorcycle delivery company owned Evert McCabe. They changed their name to Merchants Parcel Delivery (MPD). With the addition of McCabe, they moved their focus to package delivery. If an individual purchased goods from a local store, MPD would deliver the goods to the required address, via mostly