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