UPS Gearing Up for Incredible Bulk?

UPS Gearing Up for Incredible Bulk?

May 14, 2018

UPS is the world’s largest package deliverer, and it is on the brink of entering into home delivery of large, heavy packages.

In a significant strategic shift,  talks are in the works with potential delivery partner Werner Enterprises to help UPS compete in this area, possibly by year end.

Delivery of these purchases is now one of the fastest growing segments of online retail, and UPS wants a piece of the action. Younger consumers in particular want to buy their furniture online.  UPS currently has a maximum weight of 150 pounds for home delivery, but partnering with Werner would enable UPS to deliver for online retailers like Amazon, Wayfair, Ikea, and Target that are trying to compete with companies like Crate and Barrel and big-box stores.

This post is based on the CNBC article, UPS weighs strategy to deliver bulky goods to boost growth, by Andrew Harrar, May 2, 2018. Image source: © McGraw-Hill Education/Andrew Resek.

Discussion Questions:

1. How and why is UPS’s operation’s strategy changing?

Guidance: In the past, investing in speeding up its package-sorting operations has been a key strategy for UPS as it focuses on keeping its costs down.  UPS Continue reading

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Amazon and Whole Foods: Efficiency vs Community?

Amazon and Whole Foods: Efficiency vs Community?

April 12, 2018

Amazon’s strategic focus on efficiency and streamlined, centralized operations may be at odds with Whole Foods’ community connections and local vendors.

Whole Foods met with about 200 suppliers to discuss new plans under Amazon’s leadership, and many of the grocery chain’s smaller vendors are worried that they may lose business to suppliers who can pay more for shelf space, displays and promotions.

Also, Whole Foods is cutting all store graphic artist positions and other jobs in regional marketing organizations in favor of more consistent branding across the chain.  Some onlookers worry that the chain will lose its uniqueness and become just another typical grocery store, but Amazon believes a centralized approach will help improve the customer experience.

This post is based on the Forbes article, Under Amazon, Whole Foods Is In Danger Of Becoming Efficient, by George Anderson, April 5, 2018. Image source:
Shutterstock / Helder Almeida
.

Discussion Questions

1. How is Whole Foods’ operations strategy changing under Amazon?

Guidance: The focus is shifting from one of differentiation/high quality with unique, community focused stores to one of differentiation/consistent quality with greater emphasis on efficiency in purchasing and uniformity of operations.

2. What are some advantages and Continue reading

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