Business Relationships Essay
UPS Company does not only satisfy its statistical accounts and assets, and internal organization but also the public utilizing their services. Unlike other delivery systems, UPS is more oriented in providing quality and timely deliveries payable at lower costs. Therefore, according to McGrath and MacMillan (2005), UPS cargo system focuses more on increasing their facilities in order to enhance the reach of their services as well as to provide quicker access of deliveries (p. 109).
Added by Dawson (2003), UPS regularly visits its frequent and large customers by sending representative teams that comprise product development, strategy and innovation executives to meet its client’s executives and discuss upcoming UPS initiatives and developments (p. 127). Evidently, customer preferences and ease in deliveries are priorities of the organization. b. Partners and Alliances One of the most recent partners of UPS is the United States Postal Service (USPS), which is also its former competitor.
In order to effectively compete with FedEx’s new ground extended package system, UPS has partnered with USPS in order to offer different UPS Main Innovations (UPS, 2008). Aside from its many retail stores and facilities worldwide, UPS has a history of less frequent alliance formation but more on into purchasing of delivery
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) on parcel carriers and freight servicing companies. c. Code-sharing and joint ventures Most recently, UPS’s joint project with USPS has formed their UPS Mail Innovations, which permits UPS to pick up mail deliveries and transfer these to USPS outlets called Destination Delivery Units (DDUs) for distribution process (UPS, 2008). The joint project of USP and USPS – US Mail Innovations – is a high-volume mailing service that provides mail management through logistics provider and infrastructure systems. US Mail Innovations allow fast mail deliveries that can only take 24 to 48 hours after pick-up and preparation.
This new service is available in both domestic or international destinations, and works very similar with UPS’s integrated carriers and standard ground deliveries except for the additional USPS mail process involving (1) Local Post Office, (2) Origin SCF and (3) Origin BMC for domestic mail process and International Postal Authorities for International mail process (www. UPSMailInnovations. com, 2008). d. Agreements and arrangements Service enhancements, expansion and outlet establishments are most of the time facilitated through purchase of company.
Less-Than-Truckload (LTL) Overnite Transportation deliveries was bought by UPS last August 5, 2005 for U. S $1. 25 billion, and eventually became under the official UPS Freight Service on April 28,2006 (Belman, 2005 p. 44). Other notable agreements of UPS involve mostly the buying of parcel and carrier companies. Another arrangement of UPS was the purchasing of the U. K-based parcel carrier company – LYNX Express Ltd – for ? 55. 5 million euros last October 3, 2005. The buying of LYNX Express Ltd has expanded the carrier reaches of UPS in U. K (Pasiuk, 2006 p. 140). XIV. Future Plans
As of 2008, UPS has already announced two of their latest innovations, while one of their upcoming projects has recently reached the public media. The UPS Paperless Invoice and UPS Returns are now available in the public as part of the UPS Shipping Tool enabling automated paperless invoices during shipment processing and clearing available across the globe. UPS Paperless Invoice provides additional security for delicate deliverables or transactional shipments free of charge (UPS, 2008). On the other hand, UPS Returns provides efficient purchased item returns from 98 different countries around the world.
Similar to other UPS systems (e. g. UPS Internet, UPS WorldShip, etc. ), UPS Returns can be integrated online via company’s purchasing systems. UPS has announced, in their recent customer technology news, the projected developments of e-commerce-based shipping and delivery system tools, such as their UPS Returns and Paperless Invoices (UPS, 2008). XV. Summary From J. Casey’s operations in 1907 up to the present management of S. Davis, the company has evolved dramatically reaching almost every place in the world with their highly innovative air cargo and standard ground based delivery systems.
UPS has also partnered with large companies, such as the recent USPS – forming their UPS Mail Innovations, and purchased several parcel and carrier companies in the past, such as – LYNX Express Ltd and LTD – expanding their Freight services. Currently, UPS is developing their e-commerce based shipment systems and plans to further its development in the near future. XVI.
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