Ups Operations Management

Financial benefit of the transition to UPS Technology is a major part of these changes and UPS spent huge amount of money on technological upgrades each year (Ross et al. , 2002). UPS always find new and improved technology which the company is able to maintain competitive in their pricing (Clinton, 2008). Fuel is a major expense for the company, their operations also helps UPS reduce costs. As they always put efforts to increase their achievement, UPS became more efficient and developed company compare to before by the UPS transition. As below chart shows Financial Data of UPS from 2007 to 2012.

Million of us $| 2007| 2008| 2009| 2010| 2011| 2012| Total revenue| 49. 69| 51. 48| 45. 29| 53. 10| 53. 21| 54. 06| Net profits| 382| 3003| 2152| 3488| 38| | In terms of company financial performance, this chart indicates that the total revenue from 2007 to 2012 is in a strong financial position. UPS has been able to make strategic investments which have maximized profits, as well as increased share earnings for shareholders. In this chart shows the net profits in 2008 prove that it has increased sharply from year 2007. However, like so many other global firms, UPS did suffer as a result of the 2008/2009 global financial crisis (GFC).

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Even year 2009, the revenue went down, It has reached to 53. 10 Million in 2010. The financial result, UPS is generally maximizing profits. In my point of view, there are several reasons that UPS could gain financial benefits from its transition. First benefit is UPS use advanced technologies which make the company more efficient and it helps to reduce more employment resources and the major fuel cost as well. Another benefit is cost perspective. For example, UPS reduced warehousing expenditures as well as extracting savings from streamlined supply chain overall.

Moreover, as UPS is a logistics service provider, UPS will benefits its customers by providing services. I will also benefits heir financial positions such as speeding up the invoice process and lowering administrative costs through upgraded billing systems (UPS, 2012k). Financial benefit of transition to customers Technology offers financial benefits to customers in helping to keep shipping costs competitive, while the integration of extensive online tools helps customers easily track packages for invoicing purposes and make shipping payments via the internet.  Each change that UPS made has helped to build a larger customer base which leads to more revenue and offers more ways to lower operating costs. As UPS continues to transform in the future, they will be looking for additional ways to lower their costs and increase the bottom line profit. Technology has helped in the past and will continue to improve in the future years to come. /There are direct and indirect financial benefits for customers. At UPS, they provide tracking service which can make customer all the way know the information about the package during delivery process.

Through this program, customers will not worry about their package safe or not. If the package is damaged during the process, the customers will achieve loss even though they have the insurance. Moreover, UPS NET is a global electronic data communications network that provides an information-processing pipeline for international package processing and delivery. Then UPS can design the most economy delivery route for customers which can reduce the cost for customers.

Most importantly, UPS expansion the business all over the world so that the average cost for them is cheaper than other small logistic company. It not only provides better and efficient service but also have more space to reduce their price. Finally, it may save money for customers. In the other aspect, there is indirect financial benefit for customers, such as saving time. If the company may not delivery products on time, other companies will fill its place. UPS makes the delivery process efficiency and save time for customers by using advanced technology and logistics management.

Reference: 1. Our history 1907-1980,  retrieved August 25th from http://www. ups. com/content /us/en/about/history/index. html? WT. svl=SubNav 2. UPS Three Trade Direct services, 20 Aug 2011, retrieved from http://www. ups. com/tradedirect/ 3. United Parcel Service-clb, Retrieved August 25th from http://investing. businessweek. com/research/stocks/financials/financials. asp? ticker=UPS:US 4. Willian R. Boulton and USW (1999), United Parcel Service: Moving at the speed of business Retrieved August 25th from