United Parcel Service
X-45 syndicate 4
RIAN IRVAYANTI 29111083
MILDA JUNITA 29111097
MARTIN MANGIHUT P.R. - 29111112
ZEOLAN RAKSA I.K. 29111113
ERIK ISMAIL SUHAERI - 29111115
Company Background
1907
Founded of United Parcel Service Under the name
American Messenger Company. Delivered package by
foot, streetcar or bicycle.
1913
UPS acquire its first delivery Card
1915
UPS management introduce the Pullman Brown Color as
its trademark
Company Background
1919
Company realize that labour union were unavoidable in the near
future
1922
UPS took a new strategy, it began an experimental intercity,
Common Carrier service in southern California
UPS make its standard operation company
UPS make a Policy Book
1976
UPS planned an aggressive international expansion
Company Background
1980
UPS introduce new program Next Day Air Service in the
US
1980s
UPS embarked a strategy at diversification and UPS planed
to modernize its antique data processing department
1987
UPS expand its service to Canada, 16 European Country
and Japan
UPS was a largest transportation company and the largest
air freight in the world this year
Competitor
US Portal Service
Major competitor of UPS in fourth-class parcel
service
USPS competed with USP also in its Express
Mail Service. It growth from 7.7 million pieces
to 40 million pieces in 1987
In 1980, USPS implemented many change in
thir marketing and operation strategy
Competitor
Federal
Express
Fedex using technology as important
element its company strategy
Developed hardware and software
system for scheduling, tracking, sorting
package document rapidly and sortly
In 1986, fedex handling about 537000
package and document per day and
revenue 2.6 $ billion , net income 132
million dolar.
Competitor
Air
Borne Freight Inc
Traditional freight forwarder, hade
made a total commitment to
domestic and international package
express
1986, handled 105000 piece
document per day and revenue 542
million dollar and net income 13
million dollar.
Competitor
Emery
air freight
Leading in air freight forwarder
In 1978, began with express service
Purolator
Specialty in ground package delivery
1987 : merged with Emery ,gaining 12 % of the total one-
day air express market
ROADWAY
PACKAGE SYSTEMS (RPS)
Began operations in 18 midwest and northeast states,
with terminals in 33 cities and hubs in 3 other locations.
RPS was sophisticated billing and package tracking
system. A shipper could call a tol-free number at any time
to find out the locaton of the package.
UPS Operation
UPS had pioneer in the concept of daily pickup and
delivery
Annual growth rates for the air express package
market averaging 15 % to 20 % in the late 1970s
1983 : to accommodate next day service , UPS had
developed a large hub in Lousville.
UPS had developed a two-day air service and UPS
didnt consider overnight air service to be its mission
UPS Policies and
Organization
UPS have unique profit-sharing and stock
ownership plan to their employee to get their
lifelong commitment to the company.
Policies concerning on employee, ownership,
decentralization, communication, managerial
development, the unpretentiousness of its
facitilities, and its emphasis on customer service
were particulartlu representative of the UPS culture
Career Management
Division Manager
This position must be filled with full timer
employee
Center Manager
Center manager give their responsibility and
report to division manager. It position must be
filled with full timer employee
Supervisor
supervisor give their responsibility and report to
Center Manager. This position could be filled with
full timer or part timer employee.
Driver
This position could be filled with part timer or full
Internal Development
Employee
UPS developed their employee internally within
policy, effective training school , on job training ,
role modeling. This program succeeded in
preparing some of its junior worker for top level
position
The management motivating their employee
used people policy based on integrity and
fairness, but not force.
They encourage their employee by recognition,
Issue
UPS left behind in technology than their competitor
UPS need change in policy, that related to used information
technology to support their business
Company that growth bigger and handling much parcel and
document and also covered area they was served
increasingly widespread they need support of information
technology
UPS need technology for data processing such as package
scanning, Radio dispatched pickups, package tracking and
Data Acquisition Service
What is the problem ?
To developed IS the management had to
make a choice, hire people from within
UPS or hire from outside UPS (the
professional in Information system)
Analysis
Internal Hire
Hire professional in IS,
outside the company
Understand UPS business
process, value and culture
Dont understand UPS business
process, value and culture
Need much time to trained them
to understand and have skill in IS
Development
Mature, the didnt need much
time to trained their skill. They
just need time to understand
business process, value and
culture of the company
They dont have much skilled
needed. Their skill under the
standard
Professional in Information
system
Physical fitness
Adaptable in company value and
culture
Easy to stand up them in the
company
Career minded
kutu loncat
Recomendation
Short Term Recommendation
Hire professional from outside the company to developed
the base IS needed.
Long Term Recommendation
UPS continued to develop some their internal talent in the
company to be professional in IS system development and
maintenance. Company set them to work with new hire
professional in IS
Propose a good carrier in IS in the company for new hire
(professional) and for their internal employee that have
good talent in IS
