UPS and Its Faster Service:

From a One Man Service to a High Technology Provider

Lorraine Alvarez

Florida Tech University

Abstract

This paper describes the transformation of the United Parcel Service (UPS) that began as a very small delivery service and evolved into a multimillion dollar company that provides delivery services worldwide. It details how UPS purchased and utilized new technology to improve their performance and provide the best possible service to its customers. It shows the strategic, technical and organizational issues that UPS had to address and how they faced both challenges and opportunities within their logistics and capital business models.

History of UPS

UPS has increased its speed and efficiency of delivering packages using information technology. UPS began operations in 1907 on the West coast of the U.S. It expanded its business in the 1930’s to include New York and then internationally in the 1970’s. Today, UPS will deliver over 14 million packages all over the world using around 70,000 drivers that are wirelessly connected to the UPS main databases.

In the year 1907, America needed delivery service and so Jim Casey borrowed $100 from a friend to begin the American Messenger Company in Seattle WA. In 1913, the company purchased its first Model T, made changes to its delivery methods and changed its name to Merchants Parcel Delivery. In 1924, after expanding outside of the Washington area, they built their first conveyor system to handle packages. In 1930, they expand their services to the east coast. In 1953, it resumed its air operations after the great depression made it end this service.
It’s hard to believe as we look at the operations of today, but in the 1950’s UPS was restricted from delivering in certain states and wasn’t until 1975 that the Interstate Commerce Commission gave UPS authority to