UNITED PARCEL SERVICE HARVARD BUSINESS SCHOOL Masca Indra Renni Rengganis Yessie Fransiska
Nov 14, 2014
UNITED PARCEL SERVICEHARVARD BUSINESS SCHOOL
Masca IndraRenni RengganisYessie Fransiska
OUTLINE
Case Background
Case Problem Definition
Company Profile
Problem solving and analysis
Conclusion
Case Background
Having an enormous package delivery network, offers UPS an opportunity to
create even greater value for their customers by using the network to manage
the integration of information, transportation, inventory, warehousing,
material handling, packaging and even the security of packages.
On an annual basis, UPS delivers 4 billion packages and documents
through a fleet of approximately 100,000 package cars, vans, tractors,
motorcycles and 233 UPS-owned aircraft
Case Problem Definition
1. New plan for hiring outside talent Information Services
2. Different opinions about hiring new talent for Information Services
3. Facing the competitors and new technology challenges
4. Face the competitors
USPS : they compete in the delivery of low weight packages in short distance
and expedited service.
FedEx : the using of hi tech
5. Face the new generation of workers
6. Information service department’s problems :
- poor skill
- haven’t specialist the “new” outsiders can not match with
UPS culture
Company Profile• Started in 1907 by 19 year-old Jim Casey then called American
Messenger Company.– Became Unite Parcel Service of America in 1929 and
began shipping packages on commercial airliners.
• Several Transformations:• From messages to package delivery• To international air transport company• Finally, in the 1990s, to a logistics company
The UPS Road Map
Year Description
1907 Jim Casey founds a six-bicycle messenger service called American Messenger Company in Seattle, Washington
1913 American Messenger merges with Motorcycle Delivery Company, creating Merchants Parcel Delivery, which has a "fleet" of a few motorcycles and one Model T Ford.
1915 The company begins painting its delivery vehicles brown.
1916 The company drivers join the International Brotherhood of Teamsters.
1918 Three Seattle department stores hire the firm to deliver merchandise to their customers.
1919 After buying a delivery firm in Oakland, California, the company changes its name to United Parcel Service (UPS).
1930 Operations are expanded to New York City, which also becomes the location of the company's new headquarters.
1953 UPS begins a steady expansion of its common-carrier parcel business, through which it picks up parcels from anyone and takes them to anyone else; UPS Air is launched as a two-day air express service connecting major cities on the East and West Coasts.
The UPS Road Map
Year Description
1962 Casey ends his long reign as CEO.
1975 UPS becomes the first package delivery firm to serve every address in the continental United States; the first international expansion begins with the launch of delivery service in Ontario, Canada; the company moves its headquarters to Connecticut.
1976 UPS enters the European market through the start-up of a delivery service in West Germany.
1982 UPS Next Day Air, an overnight air delivery service, debuts.
1985 The company begins offering international air service between the United States and Europe.
1991 Headquarters are relocated to Atlanta.
Company ProfileKnown in the industry as "Big Brown,“ UPS is one of the biggest Shipping Company In US
UPS relocated its corporate headquarters from Greenwich, Connecticut, to Atlanta, Georgia
By 1992, the corporation was investing more money in computers than in ubiquitous brown vehicles. These internal changes reflected the company's traditional focus on super-efficiency as well as its newfound emphasis on customer satisfaction.
We serve the evolving distribution, logistics, and commerce needs of our customer worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners.
– UPS Mission Statement
UPS VALUE
• “Consensus building”• Focused on efficiency and execution• Continuous improvement• Strong values: service excellence, employee
ownership, commitment to stability• Low turnover, loyal workforce
CULTURE
Private postal companies– Federal Express
Large government-supported agencies– USPS– Deutsche Post
COMPETITION
HEAD-TO-HEAD COMPETITION FedEx UPS
Ground Vehicles 50,000 88,000
Aircraft 625 583
Employees 216,500 360,000
Packages Shipped Daily 5.4 million 13 million
Assets $15.4 billion $28.9 billion
Revenues $22.5 billion $33.4 billion
Net Income $830 million $2.9 billion
Problem solving and conclusion
Problem solving
For the problem are faced by UPS, they are late to follow the technology because lack of skill in
Information Service Department.
To be the first company in Logistic Industry, UPS have
to concern about this problem, they should place
the person with high capability in Information
Service Department.
The choice for hiring can be internal or external.
UPS
internal external
INTERNAL RECRUITMENT EXTERNAL RECRUITMENT
ADVANTAGES ADVANTAGES1. The cost is relatively cheap, because it
does not need the selection process as external recruitment.
1. Have ideas and new approaches
2. Organization knows that workers have the ability to chair empty.
2. Work started with a clean sheet and pay attention to the specification of experience
3. Workers have a high motivation because knowing the possibility of increasing
3. The level of knowledge and expertise not available within the company that now.
4. Clear career development
5. Workers have a good understanding of policies, procedures, rules and habit of the organization.
INTERNAL RECRUITMENT EXTERNAL RECRUITMENT
DISADVANTAGES DISADVANTAGES1. Not always provide a new perspective 1. Low employee morale and commitment
2. Promoted workers are familiar with subordinates making it difficult to run the authority and power.
2. A relatively long period of adjustment
UPS VALUES :• Function as partner• Consolidated parcel delivery is main business• Promote from within• Considerate and understanding of our people• Uniform service• Maintain dependable delivery service• Insist upon integrity in our people• Economic stability
UPS Core CompetenciesAchievement orientation
Organizational commitment
Teamwork and cooperation
Developing others Relationship building (networking)
CONCLUSION
• Based on the value that company have, especially about employee which is said that “Promote from within”, we decided to make Internal Recruitment for IT Service.
• IT Service need company generic competency, the skill can be trained to the internal sources.
• The UPS has already run well because the employee, supervisor, manager, and director have a solid teamwork, the newcomers have to work hard to adjust the culture. It’s better to choose Internal Recruitment as a choice.
thaNK yOu…