Tuesday, April 21, 2009

Projects and Planning

An example of a project for UPS is the everyday activity they perform – package handling. There are set amount of times for each step in the process, so Gantt charts are most likely used. A regular 20 pound package has a set amount of time for each step of its trip, depending on how long it is supposed to be shipped. After the customer ships the package out via UPS, it is processed and loaded at one point, delivered to a local hub (possibly another one after that), unloaded and loaded again and then finally shipped to the recipient. This process is for a regular 20 pound package, and if shipped standard, then it can be expected anywhere between 4-7 business days. The software UPS uses is not applicable.
I believe the system they use is great because it has worked for 102 years and UPS is the leading package handling company in the world. To be more efficient in certain areas, I would make certain hubs more versatile. Constructing some hubs to take in packages over 120 pounds (max that can be processed through a local hub for delivery) would help lower cost of traveling and increase efficiency and customer satisfaction.

Monday, April 13, 2009

Supply Chain Management

The supply chain for UPS from raw material to customer is interesting. Because they are a service provider, UPS does not necessarily have raw materials. They deliver service, not develop products. The process actually starts with the UPS customer shipping a package, goes through the company, and ends with another customer. It is picked up by a driver, taken to a local hub where it is unloaded off of a trailer and loaded back onto a local package car to be delivered.
Bob Stoffel is the leader of the UPS Supply Chain. He directs the distribution and logistics operations of the company and is also responsible for the UPS Corporate Strategy and engineering functions. He says, “the mission that all supply chain professionals strive to achieve is to improve business processes by bringing providers, shippers, consumers, and goods closer together, and by doing so, enable global commerce."
UPS is so advanced in Supply Chain Management that they offer their services in UPS Supply Chain Solutions. Here, they help other businesses supply chain by improving and managing inventory and moving products.