UPS SUPPLY CHAIN MANAGEMENT

Running head: UPS SUPPLY CHAIN MANAGEMENT 1
Logistics and Operations Management
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UPS SUPPLY CHAIN MANAGEMENT 2
Introduction/Background Information
UPS Supply Chain Solutions is an American logistics company headquartered at Atlanta.
UPS operates in the supply chain industry and provides a diverse range of products and services
transportation, warehousing, custom brokerage, freight forwarding, inventory and packaging
management, supply chain consulting, and distributing. The company has over 11760 locally and
approximately 481,000 employees worldwide; it operates in 175 countries. Also, UPS provides
consultancy services for industrial manufacturing, automotive, and healthcare industries all over
the world. In the 2018/19 financial year, UPS reported $2.352 billion in profits and now ranks as
the second world’s largest logistics firm after XPO logistics Inc.
How does this supply chain support the company’s strategic goals?
UPS Supply Chain solutions has diverse resources for managing all aspects of global
supply chain, including transportation, logistics, LTL, distribution, air freight, and others (Rolf,
2018). In particular, UPS uses lean inventory tools, warehousing management, demand
forecasting, and specialized freight handling approaches to ensure effectiveness in supply chain
management (Rolf, 2018). Supply chain planning and supply chain execution systems are the
two forms of SCM used by UPS. This makes it easier for the clients of UPS to access its
expanding range of logistics, consulting, freight, and transportation services hence improving its
global supply chain efficiency.
What are the strengths of this supply chain?
Improves efficiency: UPS supply chain helps the company minimize losses and
maximize profits in its transportation and logistics services across all countries where it operates
(Rolf, 2018)

UPS SUPPLY CHAIN MANAGEMENT 3
Proper coordination and customer loyalty: The use of agile supply chain in UPS helps
offer better customer service and ensure timely delivery of raw materials (Elrod, Murray, &
Bande, 2013). With customer loyalty, the company enjoys customer retention and improved
sales for its products.
No bottlenecks with agile supply chain: UPS has thrived when it comes to ordering and
shipment of products for there are no bottlenecks; no idle or extra labor, unhappy customers, and
lost sales (Elrod, Murray, & Bande, 2013). When customers are happy, the business
maintains it position for transport and logistics industry in the market.
What are the weaknesses of this supply chain?
Business disruption: In agile supply chain, UPS Supply Chain Solutions outsources part
of its supply chain operations, for instance production, materials, shipping, and sales; this leaves
a room for vendor disruptions either accidentally, via struggle, or delay of pay confirmations
(Kim & Lee, 2015).
Operations shut down: In this supply chain, only one part of UPS’s supply chain is
needed to break down the company’s ability to deliver products and make money (Milena,
Jarrod, & Matthias, 2020). For instance, when it does not get supplies, the website crushes,
there is a machine break down, or the company is unable to locate any suitable warehouse, or a
delivery lorry breaks down; then all supply chain operations get shut down.
What metrics does the company utilize for its supply chain?
In order to measure its supply chain, UPS uses various metrics namely peer reviews,
inventory turns and return on assets, resilience, and growth in revenue.