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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Samsung: Another Blockchain Convert

Samsung: Another Blockchain Convert

Samsung Electronics Co. is planning to cut shipping costs by 20% with the use of a blockchain ledger system to track its global shipments.  The blockchain system reduces documentation costs, shipping paperwork, and time to coordinate with port authorities.

(Check out previous OM in the News posts on blockchain’s use in increasing food safety and transparency, and reducing counterfeit goods and forced labor.)

This post is based on the Bloomberg article, Samsung Jumps on the Blockchain Bandwagon, by Sam Kim, April 15, 2018. Image source: Shutterstock / Gorodenkoff.

Discussion Questions:

1. What benefits does the blockchain ledger system have for Samsung’s global operations?

Guidance: This ledger system will enable Samsung to track global shipments worth tens of billions of dollars a year, cut shipping costs by 20%, reduce lead time between product launches and shipments, and better respond to competition and customer demand.

2. What impacts does blockchain have on information management in manufacturing supply chains?

Guidance: Transactions are recorded, verified and shared more securely, efficiently, and cost effectively.

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