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Ups Strategic Planning

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Strategic Planning at UPS

They were investing in the core business of worldwide distribution and logistics. Company was building competencies in the integration of goods, funds, and information. They were using technology to create new services. They started attracting talented people. Studying customer behavior and anticipating their needs. Practicing innovation that leads to growth. Developing an environment that enables them to treat each customer as if he or she were the only one.

UPS Distribution System
Consolidation:
* Collection of Parcels. * Traffic trends and road conditions are continuously monitored to insure that the optimal path is taken. * From his truck, the driver has access to a hand-held computer device (DIAD) that captures information about each packages and delivery. The parcels are then assembled at the closest distribution center.

Distribution * On a hub to hub basis, depending on the distance involved, the mode used between hubs will either be by trucking or air. * Commonly, trucks are dominantly used for distances less than 400 miles (600 km). * The main air hub is Louisville, Kentucky, which handles over 100 flights a day.

Fragmentation * Parcels have to be delivered to each individual destination. * Fragmentation is combined with consolidation as a delivery truck route can be integrated with a pickup route. * This can be achieved only with a high level of control on the logistical chain.

Scenario Planning
The Horizon 2017 session, as it came to be called, was similar to the 1997 session in format and process, with three important variations. 1. Mike Eskew, the CEO and the direction decided to take the the scenarios and implications deeper, to regional levels as opposed to a single global picture. 2. Extensive interviews, perspective of academics, consultants, etc. 3. Participants are involved into...

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