UPS
United Parcel Service (UPS) is a world leader in package delivery. The company started in Seattle, Washington as a private messenger and delivery service in 1907. It has since grown to be a leader in world’s package delivery business, the largest provider of worldwide supply chain management solutions and the biggest provider in the less-than-truckload industry in USA. Over 1.5 Million senders and 7.9 receivers have their packages delivered by UPS each business day in over 220 nations and territories. A total of 4.9 Billion packages were delivered in 2013 alone.
Therefore, UPS is a worldwide leader in logistics, creating value for customers at low cost and reliable supply chain.
Growth Strategy
Customers rely on the company’s wide array of logistics capability, worldwide presence, reliability, and advanced technology for a cutting-edge lead in markets they choose to lead. The company has also invested in expansion and coordination of its worldwide network thus creating customer-friendly shipping, e-commerce, logistics management and visibility tools for the clients.
The growth strategy at UPS entails the following:
1) Offering technology-enabled services.
2) Providing distinct and particular client solutions as per industry requirements.
3) Increasing their worldwide network.
4) Addressing client needs worldwide.
Divisions, Products and Services
- U.S Local Package Reporting Division. Offers an array of American local underwritten ground and air package delivery services.
- Global Package Reporting Division. It involves the small package delivery in the rest of the world except Oceania under a selected underwritten day and time-specific international shipping services.
- Distribution Chain & Freight Reporting Division. Elaborate distribution chain requiring a worldwide service that involves both transportation and distribution on global trade and brokerage services with both monetary and information services.
- Consignment Forwarding. The company offers both full ocean full-container load and less-than-container load movement between any two major ports globally. This had been made possible due to UPS being a leader in global air freight services both in the United States domestic market and the rest of the world.
- Customs Distribution. UPS is one of the top customs brokers by yearly deliveries processed and the number of committed brokerage workers globally.
- Supply services. The company’s immense global distribution centres enable comprehensive management, flow of goods, preparation and shipment. This saves time, resources and brings packages closer to the customers.
- Post sales. This refers to services offered after delivery of goods. The company ensures that particular goods are at correct destinations within the distribution network to meet the needs of the clients.
- UPS Mail Transformation. Offers a cheaper way of sending light mail to international clients from the U.S. Clients local and global mails are sorted and posted in safe containers and delivered to required locations.
UPS Consignment. Gives both regional and inter-regional and long distance less than truckload (LTL) services all over the United States, Canada and Mexico.
UPS Capital. Offers both export and import financing to reduce risks and, goods protection and payment services.
COMPETITIVE STRENGTHS
1) Consolidated International Network.
The company has a merged ground and air matrix of localized canters that receive and send clients goods. It, therefore, handles a wide array of different goods in all levels of services.
2) International Presence.
UPS is an international company serving over 220 countries distributed all over the world giving it a presence in all major economies.
3) Advanced Technology.
UPS’s technological innovations ensure lower costs, improved service and reliability.
4) Broad Choice of Services.
Clients are able to pick from an array of services depending on their suitability.
5) Customer relationships.
The company’s staff maintains a long-term relationship with over 9.4 million clients.
6) Distinctive culture.
The dedicated staff is offered part of the company stock thus facilitating employee-ownership concept
7) Financial strength.
Adequate financial reserve enables technological advancement, innovation and perusing new opportunities in the industry.
Competition.
UPS being a leader in world package delivery business also faces competition from both local and international firms that offer various financial services, cargo carries express firms and others.
FedEx
FedEx is a freight company that started as Federal Express in 1973 in Memphis, Tennessee, U.S.A. The company was incorporated in 1997 as FedEx, borrowing the first two syllables from the parent company’s name. It pioneered in overnight freight services and package tracking systems and real-time information on package location to locate lost or misplaced packages. This made it a popular and highly reliable freight services provider thus becoming a major carrier for high priority cargo in the United States. It expanded rapidly internationally while acquiring local freighters in the 1980s.
It is a 1989-Acquired Tiger International Inc., bringing new routes to 21 countries. The resultant integration made FedEx world’s biggest full-service cargo airline.
In 1995, it acquired the authority to serve China by possessing the license from Evergreen International Airlines. This made it the only direct U.S-China freight service provider at the time.
The company has since grown to be the world’s largest express all-cargo carrier making 3.6 Million shipments daily in over 220 countries and territories.
The Company’s Organization Portfolio
FedEx Corporation
1) FedEx Services.
It is concerned with the application of e-commerce in the international supply chain and linking innovation and services clients require.
2) FedEx Office
Specializes in freight and printing services including copying, renting out computers, professional editing and corporate finishing and print solutions.
Keeps an international network serving 360 airports to provide time-conscious air-round deliveries in 220 countries.
4) TNT
Offers cheaper delivery services for documents and lightweight parcels both through air and road worldwide
5) FedEx X Trade Networks
Consolidates air and sea shipping services whilst minding the clients’ needs. FedEx Cross border-It links international transactions across borders facilitating e-commerce in all its branches.
6) FedEx Ground
Offers clients a reliable enterprise-to-enterprise delivery or residential service.
7) FedEx Supply Chain
Provides consolidated solutions to the advantage of customers and improved management of the supply network.
8) FedEx Freight
Covers entire North America and U.S territories for less-than-truckload (LTL) services based on the client’s freight needs.
9) FedEx Custom Critical
It handles most urgent cargo, hazardous goods or valuable items on daily basis by door to door services. Offering DDP solutions to allow clients to ship having prepaid estimated import duties.
Over 90 per cent of the world GDP is connected by FEDEX with its team of 550,000. The company is ranked among the worlds top most admired companies.