Introduction
United Parcel Service, Inc. (UPS) is an American corporation that specializes in rapid delivery and logistics. It is now one of the most successful businesses in the American and worldwide delivery service marketplaces. The corporation delivers over 17 million items of freight to 9.4 million customers per day.
The company’s primary operation is the express delivery of a diverse range of goods and services. Nevertheless, UPS also has a department responsible for supply chain management. The corporation operates its own aircraft, UPS Airlines, which has a fleet of over 230 planes and is one of the world’s largest delivery companies, serving more than 210 countries worldwide. As a result, UPS has a considerable competitive advantage in the delivery services sector. However, such achievement would not have been feasible without meticulous strategic planning at both the corporate, business, and technical levels of the corporation.
Corporate and Business Level Strategies
Corporate-level strategies outline the scope of the economy’s sectors and markets where the corporation operates and competes. Corporate strategy decisions often involve investments in diversifying the company’s activities, the acquisition and formation of new firms, resource allocation across the company’s various activities, and divestitures (Ashrafi et al., 2018). For UPS, these strategies include continual enterprise transformation to improve its position in the delivery services industry, as well as investment to ensure the company’s development. These techniques include providing a unique experience for clients and strengthening marketing and sales operations.
Business-level strategies explain how a company competes in a particular sector or market. According to Ali and Anwar (2021), for a company to thrive in the industry, it must have a competitive advantage over its competitors. UPS, for example, is focused on creating value for clients who benefit from the company’s range of logistical capabilities.
In the long run, the supply chain strategy is the most vital for the company’s success (Turban et al., 2018). This assertion is validated by the fact that it is the most critical component of the firm as a whole, and its development directly impacts all of its operations. A well-developed supply network of the organization, in particular, gives the potential for diversification of its activities (Turban et al., 2018). Furthermore, its modernization may allow for the elimination of some of its pieces, thereby shortening the entire supply chain and, consequently, simplifying the company’s logistics procedures, making it more appealing to clients.
Technical Strategy
UPS’s technical approach includes the use of technologies such as portable computers (DIADs), wired and wireless communications networks, and package delivery data storage technology. UPS also uses telecommunications technology for data transmission via pagers and cellular phone networks. In-house software is used to monitor goods, calculate fees, maintain client accounts, and manage logistics, as well as software to access the World Wide Web (Altenried, 2019).
UPS has followed this strategy for over 90 years. Its objective is to offer the most excellent service at the lowest cost. The ability of consumers to monitor their cargo via the UPS website is one of the most notable components of technology.
Furthermore, technology enables data to flow seamlessly throughout UPS, simplifying the company’s business (Altenried, 2019). As a result of the technologies mentioned in the scenario, UPS is more competitive, efficient, and profitable. As a consequence, an information system solution to the business dilemma of offering high-quality services at affordable rates in the face of increasing competition has been developed.
UPS’s information systems plan strategy focuses on the following strategic business goals: It provides the best service at the most affordable prices. Their information systems enable them to provide the finest service at the lowest possible cost by employing efficient and effective approaches (Altenried, 2019). Customers receive what they want when they want it, and they may do it at a lesser cost.
Furthermore, the system is cost-effective, which enhances service quality and increases production. UPS introduced a new Web-based Post Sales Order Management System (OMS) in June 2009 to manage worldwide service orders and inventories for the delivery of essential components (Altenried, 2019). The technology enables high-tech electronics, medical equipment, aerospace, and other firms that export essential components worldwide to quickly examine their critical parts inventory.
SMACIT Framework Analysis
Digital technologies, commonly described as SMACIT technologies, are at the heart of businesses’ transformational changes. SMACIT serves as the foundation for an ecosystem that allows a company to migrate from e-business to digital business (Van Veldhoven & Vanthienen, 2022). The five technologies enhance company processes, enabling organizations to get closer to their customers while incurring the lowest costs and achieving maximum reach. None of the five technologies can be an afterthought since it is the combination of social, mobile, analytics, and cloud that generates a competitive edge and new business prospects. The five technologies are discussed below.
Social
Businesses can now contact, communicate with, target, and attract consumers in new ways thanks to social media platforms like Twitter, Facebook, Instagram, and Snapchat. It has given rise to new job titles, such as digital influencers, as well as new marketing strategies, including viral marketing campaigns and data sources like hashtags and social network linkages.
Mobile
Mobile platforms and technologies, such as the iPhone and iPad, have transformed how people connect, buy, and work. The development of connected gadgets and wearable devices, both of which rely on inexpensive sensors to gather and send data, provides the foundation for new business models and client services.
Analytics
Data analytics enables organizations to understand how, when, and where specific goods and services are used. It is also employed as a predictor of future customer behavior, as well as when physical assets, such as jet engine parts, are expected to degrade. Analytics became a primary focus for businesses as the cost of processing power and storage was reduced. Apache Hadoop, an open-source project, ushered forth a new age of analytics known as big data.
Cloud
Cloud computing provides businesses with a new approach to accessing the technology and data they need to adapt rapidly to changing markets and address business challenges. It ushered in a new era of infrastructure, platforms, and services development. Amazon Web Services was a major disruptor in this field.
Internet of Things
The Internet of Things (IoT) is an ever-expanding collection of internet-connected devices, ranging from smartphones to sensor-equipped industrial robots. Due to this connectivity, devices can transmit and receive data, enabling a wide range of operations in everyday life and business.
Internet of Things Technology in UPS
The newest technology being tested by UPS in the United States is the DIAD (Delivery Information Acquisition Device). In 1991, UPS created and implemented the first Delivery Information Acquisition Device (Altenried, 2019). The DIAD IV is the most recent generation device. This gadget supports numerous wireless connecting points and integrates GPS (for positioning), Bluetooth, Wi-Fi, and GSM networks.
Transmission in UPS centers is possible thanks to the built-in 802.11b wireless local area network connectivity (Altenried, 2019). GPS (Global Positioning Satellite) offers cars precise directions to consumer locations. This additional memory enables better customer service.
As soon as delivery information is input into the device, it is communicated to UPS through the DIAD—a real-time connection with the driver via On-Demand Service. Furthermore, this service enables UPS to utilize the most optimal geographical pickup locations. UPS has the most advanced tracking system in the delivery industry, and its truck delivery method directly contributes to its competitive edge.
Analytics Technology in UPS
Beyond the transportation aspect of import and export, UPS also provides the Flex Global View Suite of software, which includes aspects that help firms track trends and problems in their supply chain. The suite’s Advanced Analytics component is a database that maintains essential information for querying a wide range of reports for analysis on a large or small scale. A significant report is to monitor supply chain trends and evaluate how changes impact different geographic regions, thereby assisting in the creation of a more efficient and informed supply chain. This contributes to increased efficiency in any firm, large or small.
Social Media Technology in UPS
UPS has launched a new delivery service called UPS Delivery Intercept to differentiate its services from those of its competitors. This new automated solution makes it simple for shippers to fix shipment errors. UPS Delivery Intercept enables shippers to intercept and redirect items before they are delivered, providing clients with the most flexibility and control (Owenvbiugie & Akpudi, 2019). Customers who utilize UPS package programs such as UPS WorldShip or UPS Internet Shipping can request a reroute by simply clicking on the tracking number (Owenvbiugie & Akpudi, 2019). When utilizing Quantum Monitor Notify, they may also receive information that the interception was successful and view the intercept status on any UPS visibility system.
Recommendations
UPS can be commended for implementing an E-marketing strategy, but more needs to be done to ensure that it remains competitive in the rapidly changing logistics industry. Online businesses are one area that needs to develop. UPS’s website offers minimal information, which is disheartening because the consumer must wait a long time for a response from the customer care desk. The reason for this is that the call centers are located solely at the corporate headquarters. This service should be decentralized and made available to the company’s brokers and local offices.
Furthermore, DHL has implemented a customer service approach that UPS has yet to adopt: door-to-door delivery. The majority of the company’s services are delivered to warehouses or ports of call. To increase customer satisfaction, a door-to-door strategy that delivers items directly to consumers is required. This will help the firm establish a larger customer base and become the preferred logistics company.
Conclusion
In summary, UPS is one of the companies that has maintained its competitive advantage due to its extensive organizational and technical strategies. At a corporate level, the company ensured ongoing business transformation to strengthen its standing in the delivery services sector, along with investments to support its growth. At the business level, UPS focuses on creating value for its clients by leveraging its logistical capabilities.
Technically, the company has been at the forefront of implementing the current state-of-the-art technologies, including the use of DIADS and wireless communication. Additionally, the company has undergone a digital transformation as illustrated by the SMACIT framework analysis. Overall, UPS can be commended for implementing such a robust E-marketing strategy; however, it should improve its customer service approach and online business.
References
Ashrafi, M., Adams, M., Walker, T. R., & Magnan, G. (2018). How corporate social responsibility can be integrated into corporate sustainability: A theoretical review of their relationships. International Journal of Sustainable Development & World Ecology, 25(8), 672-682. Web.
Ali, B. J., & Anwar, G. (2021). Business strategy: The influence of Strategic Competitiveness on competitive advantage. International Journal of Electrical, Electronics and Computers, 6(2). Web.
Altenried, M. (2019). On the last mile: Logistical urbanism and the transformation of labor. Work Organisation, Labour & Globalisation. Web.
Owenvbiugie, R. O., & Akpudi, G. O. (2019). Influence of shared values of united parcel service on customers’ service delivery in Edo State. International Journal of Educational Research, 6(2), 49-58.
Turban, E., Pollard, C., & Wood, G. (2018). Information Technology for Management: On-demand Strategies for Performance, Growth and Sustainability. John Wiley & Sons.
Van Veldhoven, Z., & Vanthienen, J. (2022). Digital transformation is an interaction-driven perspective between business, society, and technology. Electronic Markets, 32(2), 629-644. Web.