Running head: TECHNOLOGICAL DEVELOPMENTS IN THE PACKAGE DELIVERY INDUSTRY
Technological Developments in the Package Delivery Industry
University of Phoenix
MBA 501
December 5, 2005
Technological Developments
"Moving eight miles a minute for most of the time", while these are lyrics to a song by Bob Seger, these words could describe a package's experience being shipped by one of today's leading package delivery companies. How these companies have used technology to improve their services and how they may expand the use of technology to increase productivity and reduce costs is the focus of this paper.
Package Delivery Industry Best Practices
Learning Team A identified two package delivery companies to be studied for current best practices regarding technological leveraging. These were United Parcel Service and FedEx, two companies that place heavy emphasis on innovation and investment in emerging technology. For each company, two current best practices have been identified and researched and several overall opportunities discovered that could leverage technological advancements to benefit the companies.
United Parcel Service
Founded in 1907 as a simple messenger company, United Parcel Service (UPS) has grown into a $36 billion corporation focused on global sales (UPS, 2005). A key to UPS success is the technology in which they have invested more than $1 billion per year in website and e-commerce improvements thereby creating a more efficient parcel delivery system (Hayter, 2002). As with many other companies, rapid advancements in technology are creating constant need for opportunity assessment (Rayport & Jaworski, 2004), and UPS has certainly made the most of these developments.
One U ...