Tuesday, February 3, 2009

Inventory Management

Since the United Parcel service provides a service as opposed to goods, their inventory is their assets. Inventory is described as a stock of material used to facilitate production or to satisfy customer demand. UPS is a package delivery service and to facilitate production or satisfy demand they need to get packages to customers on time.
The transportation is what they consider inventory. Package cars, trailers, and the airline fleet are all used to measure inventory. How long they last, repairs needed, and fuel usage is all important to managing these assets. The fast delivery service is not only a benefit to their customers, but their inventory management as well. The quicker they can get the job done in the shortest amount of time helps them save money on fuel and mileage. Anyway, package cars at UPS are used for local deliveries to residents and stores. They last for about 20-25 years and at the end of their life they are either scrapped for spare parts or repainted and used internally. Tractors are used for long halls and deliver packages to certain hubs. They are great for managing inventory because they can carry many packages in two 28 foot or one 53 foot trailer and take less trips. The airlines use 747, 757, and 767, aircrafts to deliver internationally and use optimal space and conserve trips. United Parcel Service even employs bicycle messengers in some cities. The transporting of goods is the service that UPS is based on, so doing it efficiently is important to managing inventory.
The most important people to running this company seems like it would be the Chief Operating Officer (David Abney), and Senior Vice President UPS, Engineering, Strategy and Supply Chain (Bob Stoffel). Abney directs all operations worldwide and oversees the pick-up/delivery of 15.8 million packages and documents daily. Stoffel directs the distribution and logistics operations of the company. He is also responsible for the corporate strategy and engineering functions of the company.
As UPS has to handle their own inventory, one service they provide to their customers is helping with Inventory Management. This is run through UPS Supply Chain Solutions. Access to their global network, comprehensive services, and advanced systems help customers manage their own inventory. UPS Supply chain solutions help their customers improve their order and inventory management and make it a more effective part of your operations. The standard services that they offer include Vendor Compliance and Order Management, Global Information Management, Global Distribution Management, Regulatory Compliance Management, and Transportation Management.

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