Managing Change at United Parcel Service (UPS)

Abstract

United Parcel Service (UPS) is the largest package delivery company in the US with sales of $31 billion in 2002. Until 1994, UPS had so heavily concentrated on continuously improving its operations that it had compromised on quality and customer service. Many analysts commented that UPS did not pay attention to customer needs and customer satisfaction. In 1994, due to increasing competition, UPS realised the need to be more customer responsive and embarked on a major corporate transformation initiative. This case gives a detailed overview of the various human resources initiatives that UPS has undertaken to change its corporate culture. The case aims at triggering classroom discussion on corporate culture, the essentials of customer service and workforce management.

UPSer:...As you know, our company is experiencing a series of dynamic changes. We are, more than ever, questioning why and how we do everything associated with running our business. During this time, we have come to realize that many of the traditional processes we have become accustomed to need to change because they continue to increase our operating costs. We all need to admit to...shortcomings and then commit to becoming advocates for the change required to move to a much higher level.

Kent Nelson, Former CEO

Atlanta based United Parcel Service (UPS), the largest package delivery company in the US, provided various specialized transportation and logistics services. In 2002, UPS transported more than 13 million packages and documents per business day throughout the US and to more than 200 countries and territories (2002 delivery volume was 3.4 billion packages and documents). It used a fleet of about 88,000 motor vehicles and more than 575 jet aircraft to serve about 1.8 million shipping customers per business day.

UPS had come a long way from a private messenger and delivery service in 1907 to become an integrated supply chain management and logistics solutions provider. It had been successful in translating itself from a small regional parcel delivery service into a global company.

UPS had attracted customers by offering them various choices: fast flights vs. cheap ground delivery, simple shipping or a panoply of manufacturing, warehousing, and supply-chain services, etc. The company had a huge transportation infrastructure suitably supported by its expertise in supply chain management and other technological solutions. AUPS was also engaged in the delivery of goods purchased over the Internet. UPS had emerged as the preferred carrier for more than 55% (10% for FedEx) of the purchases made via the Internet.

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        Case Code   HROA002
   Case Length    14 Pages
              Period    1907 - 2003
 Organization     United Parcel Services UPS
        Pub Date     2003
Teaching Note    Not Available
     Countries    Global
      Industry    Courier Service

Issues

Change Management, United Parcel Services

UPS (United Parcel Service), Human resources management, Corporate strategy, Workforce management, Corporate culture, Shipping industry, Courier industry, Courier service, Change management, Customer service, Quality in services, Fedex, Supply chain management, Jim Kelly

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.