The Growth Strategy At United Parcel Service

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United Parcel Service(UPS), the world’s largest ground and air package-delivery company and a provider of supply chain management solutions. It delivers nearly 16.3 million packages and documents every day in the United States and more than 220 other countries. UPS spends more than $1 billion each year to maintain a high level of customer service while keeping costs low and streamlining its overall operations. (Laudon,2016) The growth strategy at UPS emphasis on entering into new markets and expanded its existing products as well as customer services. The external extensions include alliances with SAP and Oracle to include UPS functionality in their software packages and the acquisitions of Mail Boxes Etc. to provide 4400 retail locations to …show more content…
This system could make high-tech electronics, medical equipment and other companies around the world that ship important parts to quickly determine the most optimal routing strategy to meet customers’ needs. In non-US market, UPS expanded its business through M&A strategy. In 1995, UPS founded its logistics group and combined several small, homegrown operations as well as acquiring some big companies that provided geographic coverage or specific capabilities. (Ross,2002). They have UPS Supply Chain Solutions division which provides standardized services to subscribing companies to help them with supply-chain design and mail services …show more content…
(Ross,2002) UPS started to build its IT infrastructure in the late 80s. Centralization of the infrastructure facilitated standardization of hardware, operating system and database, and development methodologies. At the beginning, executives tended to run the process with lower costs and along with the technology development, the standards had to be improved. For example, in 2000, the team responsible for billing applications had to upgrade the billing system to support a fuel surcharge due to unexpected gas price increases. (Ross,2002) UPS had also make partnerships with other financial institutions and technology companies to increase

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