United Parcel Service Organization and Operations

2021-05-31 08:07:19
7 pages
1799 words
Vanderbilt University
Type of paper: 
Literature review
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According to Okholm et al. (2016), the United Parcel Service is an international company dealing in package delivery at the same time providing supply chain management services. On the other hand, it deals with the logistics services such as contract logistics, transportation, ocean freight, distribution, customs brokerage, financing ground freight, and insurance. In order to serve all this with high-quality services all over the world, they operate in three major segments. The three segments include international package, US domestic package and supply chain and freight. Each segment deals with specific customers from specific regions. The US domestic package deals in handling the US both air package transportation services and US domestic guaranteed ground. In addition, it provides small package delivery services, money-back guaranteed and time definite. To customers within the US boundaries. Those customers from parts such as Middle East, Canada, Indian sub-continent Europe, Africa and Asia-pacific are served under international package segment (Okholm et al., (2016). Furthermore, this segment provides international shipping services during day and night. The third segment caters for financial and information services, transportation, brokerage services international trade and distribution. The order qualifiers of the company are creating value to the customers from different parts through giving out solutions that improve service, lower costs, provide high-quality visibility as well as customizable supply chain control. All these orders of qualifiers are boosted by the broad portfolio that constitutes of capabilities and services that are differentiated and later which is incorporated into the customers businesses. Furthermore, they do have a globally balanced multimodal network which is efficient hence offering considerable value to their customers. The order winners of the United Parcel Service is through leveraging updated technology in all its operation activities (Banerjee, 2016).

Operational Processes

According to Davenport (2013), there exist two key operational processes basing on how United Parcel Service transport as well distribute their goods and services. One of the main processes under this company is through consolidation. At this juncture, the process involves a collection of a parcel from different destinations. In order to ensure the parcel are collected in time at the same time ensuring that there is effectiveness, the vehicle movement is monitored and also the traffic trends. By this, the vehicles have been able to be directed to follow the optimal paths that will enhance them be quicker. To maintain this process to be in continuous process, the driver is usually in possession of a hand-held device where any information about the parcel or the package is captured. On the other hand, the device in possession helps in giving of information about the roads conditions or any unplanned condition that have been experienced on the way.

Furthermore, the parcels if any case the traffic is too cumbersome, the parcels have to be dropped in the nearest post office. The key performance indicators measurements took place are the software's to optimize routing strategies, facilitating in packaging tracking and also simplifying the process of shipping the red tape (Hurley et al., 2015). The second operational process is the fragmentation stage. This stage all entails the inverse of the consolidation process where each package has to be delivered to the owner on time without any delay. The delivery track in charge of dropping each and every parcel to their location of destination is integrated with a pickup route. In order to facilitate this, the whole process has to be integrated with a high level of control specifically in the logistical chain. If for any case there exist difficulties in delivering the parcels, the United Parcel Service has no obligation rather than dropping the parcels in the nearest post office to cover the last miles remaining. Key performance indicators at the fragmentation stage are the use of computer softwares that were used by both the management and the customers in tracking the package transportation process simply from the internet (Hurley et al., 2015).

Referring to each operational process, the technology of 3D is applied to transform the orders into highly quality products. This happens immediately a customer places an order where the parts of the order that have to undergo 3D process are sent to the CloudDDM. It is only after the product has been assembled and printed is sent to the customer through an effective shipping process. Each and every parcel irrespective of the destination has to under the whole process of the distribution system. According to Davenport (2013), on the other hand, United Parcel Service do have other key performance indicators such as on-time receiving. This mostly considers that their customer receives the packages in good time. Lack of this would lead to inconveniences. The second one is the on-time shipping and delivery. This has to do with the time at which a parcel is to be shipped and the time the parcel is expected to be received by the owner. The other key performance indicators at each operational process include returns cycle time, order accuracy and inventory accuracy.

Literature Review

According to Cummings & Worley (2014), total quality management refers to aiming at customers satisfaction through an approach that aims at management towards achieving long-term success. The first concept entails total employee involvement where all the employees have to be actively be involved in daily chores in the business. Proper environment, no fear in the employees and empowering the employees is essential towards achieving total employee commitment. Another concept is the customer-focused where they rely on the feedback given by the customer on the quality of services they received. No matter how many designs are integrated, purchasing of new integrated tools, upgrading of computers, training of employees among others improvement, customer are the main focus to give the quality of the services being rendered. Integrated systems also come in referring to the integrated processes connecting different functions that do matter. The micro processes that do add up to bigger process and in turn this processes aggregate themselves into other bigger processes are important in defining business strategies.

On the other hand, integrated business models have to be integrated and modeled by having acquired a good quality culture. The other one is the process-centered which involves the process of critical thinking transferring different inputs that have to transform into the desired outputs of which later have to deliver to the respective customers. According to Goetsch & Davis (2014), the performance measures have to be monitored at the same time being in possession of defined steps for the purpose of detecting any unexpected variation. In addition, an approach that is both strategic and systematic is required in achieving the company's goals, mission, and vision. It has to formulate a strategic plan at the same time integrating quality as a key component. Furthermore, continual improvement is essential. Any improvement that is continuous comes out increasing ways that are competitive enough to cater for stakeholders expectations. The continuous improvement has also to be effective too. For nay company to be highly competitive in the job market like the united parcel delivery, proper data collection and analysis is crucial. The data collected about performance measures is used in decision making at the same time allowing the prediction basing arguments on the past. Furthermore, efficient communication does play a role in increasing workers morale. Day in day out all the workers are ever motivated to work. Although proper communication is needed, it has to involve timeliness, method, and strategies.

According to Cummings & Worley (2014), total quality management application in similar companies such as the United Parcel service are used to increase business profits at the same time expanding the business operations. Some of the major pillars to facilitate application of total quality management are customer's centric advancements of processes and building a long-lasting relationship in between the two parties. That is the customer and the business. Second, benching marking with several unique tools and techniques that are adding quality. Third, is the use in top management commitment for quality enhancement. The fourth one is the strengthening the employee base at the same time focusing on quality at each stage aiming at customer satisfaction. The fifth one is relentless developing the set goals and deadlines. Putting the above pillars into place, we can be able to analyze the first application being on top management leadership. Management leadership does determine the success of any company. In whatever the case, the managerial staff have to consider the aspect of total quality management in order to offer quality services and products. If need be to motivate employees through leadership, then this approach must be taken into place.

According to Goetsch & Davis (2014), on the other hand, the customer relationship is the second application. This should always be in the minds of the employees. Using the total quality management approach helps in identifying customer needs and the appropriate level of satisfaction to be offered. Supplier relationships also come in to establish long-lasting relationships. This does help in increasing the quality of services given as it is more important than even the price itself. The product design process that recommends all the involved departments to cooperate in modifying the best design. The design should be in align with the technical, cost constraints and the technological of the company. Another application is the quality data reporting where quality has to be part and parcel of everyday activity. Any records dealing with cost quality, scrap, record and quality indicators have to be kept. In addition, workforce management depends on empowerment of workers, teamwork, and training. Proper plans in implementing the same are essential where employees have to equip with the required skills. The last application of total quality management is the process flow management. The nonstatistical and statistical instruments have to be applied in the right manner. The whole process needs to be observed under statistical control as the process has to be mistake proof.

According to Cummings & Worley (2014), the frameworks available in general business that is in line with total quality management approach is the lean framework, Six Sigma and total quality management itself. The lean frameworks are concerned on maximizing any value at the same time eliminating any waste. They aim at improving processes by removing wastes at the end coming out to be more efficient. The second framework is the six sigma involves a set of tools and techniques that aim at improving the whole process simply by using the statistical outputs. In addition, total quality management comes out to be the framework of its kind. It is made up of practices designed to improve the whole process aiming at improving the performance of a given company.

Total quality management is accompanied with a number of benefits. One of the major benefits of the same is by improving the whole enterprise. On the other hand, it aims at improving the efficiency of people improving processes and products at the same time caterin...

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