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United Parcel Service: Strategic Logistics Partner Research Paper

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Updated: Jun 4th, 2021

Introduction

United Parcel Service (UPS) is a leading logistics company with its headquarters in the United States. Since 1907, this corporation has grown to become a strong and recognized global brand. It offers specialized transportation services in over 200 countries across the world. The discussions presented below describe UPS’ efforts to establish sustainable relationships with its B2B customers and how it guides them to manage their logistical operations.

UPS’ Business Customers

Business-to-business (B2B) customers are industrial stakeholders known to purchase services or goods from other companies with the aim of manufacturing consumer products. Since UPS is a big corporation operating in different regions, it attracts and provides high-quality logistical services to more clients in comparison to FedEx (UPS Staff Writer, 2017). The changes and issues triggered by globalization are transforming the needs and expectations of these customers.

B2B businesses consider such aspects before committing or deciding to work with UPS. The first demand is that they focus on full service or product descriptions from logistics partners. For instance, many B2B customers require that companies such as UPS provide detailed analyses of their services and instruction manuals (UPS Staff Writer, 2017). This kind of information makes it easier for them to review capabilities and pursue their business objectives diligently.

The second demand is that the websites of such companies should be easy to access. An understandable platform will be navigable, thereby making it easier for business customers to place their orders when necessary (UPS Staff Writer, 2017). The third expectation from UPS is that most of the business customers expect reduced or competitive prices in order to record increased profits or gains. The fourth demand is that UPS should have the capacity to transport large volumes or quantities of materials within the shortest time possible. The fifth expectation is that this corporation should manage every aspect of the supply chain properly, embrace the ideas of sustainability and green accounting, and maximize speed.

UPS’ Marketing and Sales

UPS has different groups of potential clients who support its performance and every anticipated goal. Some of the notable ones include B2B customers and residential consumers. The marketing and sales initiatives put in place to attract and support their business models tend to differ significantly since they have diverse expectations or needs (UPS Staff Writer, 2017). For instance, the marketing and sales department begins by engaging B2B customers due to the complexity of their requirements. This strategy will differ for residential consumers because they only receive timely information about UPS’ key services and offerings.

The marketing strategy for business customers tends to be personalized, unlike the ones UPS implements for its residential consumers. This is the case since each B2B firm usually has unique expectations and requirements. The sales approach should, therefore, be designed in such a way that UPS remains the leading provider of logistical services to different businesses. Issues such as continuous communication, monitoring, and decision-making are integral parts of every B2B marketing strategy (UPS Staff Writer, 2017). The implemented programs differ when the company is working with residential consumers since it standardizes their needs.

Another observation is that UPS employs an evidence-based sales and marketing strategy for its B2B customers. This happens to be the case since each of the expectations identified above has to be met. This is usually different for residential consumers who benefit from a traditional approach. These differences exist since each group has its unique demands (Ozawaa, Sekiguchib, & Tsuda, 2017). This analysis indicates that UPS has to implement an effective marketing and sales strategy that is informed by the number of goods or raw materials and customers’ demands.

Business Buyer Behavior Model

UPS’ success is attributable to its sustainable model for identifying the needs of customers and addressing them powerful initiatives. Its story relates to the Model of Business Buyer Behavior because it examines critical issues that many consumers take into consideration (Ozawaa et al., 2017). The model begins by focusing on the issue of environment. UPS has embraced emerging technologies by creating an appropriate website that meets all customers’ requirements. It considers regulatory developments and political changes in every region. UPS monitors the cultural attributes of all clients to deliver superior services.

The next element is that of the buying organization. For UPS, all companies and individual clients receive high-quality information and timely updates. This is the reason why it employs diverse marketing approaches that resonate with their unique needs. It goes further to examine consumers’ organizational structures, policies, mission and vision statements, and systems to support their goals (“About UPS”, n.d.). Finally, the company considers the attributes of different buyers, including age, income, personality, and education. This knowledge ensures that the organization provides exemplary services to all stakeholders.

Conclusion

The above discussion has revealed that UPS has a powerful business model that makes it a strategic logistics partner for many clients. Its leaders identify the unique needs of B2B customers in order to provide exemplary services. They also apply the same model to address the expectations of residential consumers. The company’s focus on emerging technologies, regulations, changing demands, and environmental issues explain why UPS’ story is in accordance with the business behavior model.

References

. (n.d.). Web.

Ozawaa, T., Sekiguchib, A., & Tsuda, K. (2017). A method for the construction of customer behavioral modeling knowledge for B2B event marketing strategy. Procedia Computer Science, 112, 1353-1360. Web.

UPS Staff Writer. (2017). . Web.

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IvyPanda. 2021. "United Parcel Service: Strategic Logistics Partner." June 4, 2021. https://ivypanda.com/essays/united-parcel-service-strategic-logistics-partner/.

References

IvyPanda. (2021) 'United Parcel Service: Strategic Logistics Partner'. 4 June.

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