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  • UPS & Innovation

    Posted on December 1st, 2011 admin 10 comments

    UPS of “What Can Brown Do For You?” fame was started in Seattle in 1907 and has never looked back. They deliver more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world (Wiki). They are truly an innovative company. For instance, through operations research, they discovered that it is much for efficient for their delivery trucks to avoid making left turns. Simple, but insightful. Throughout the years, they have experimented with more efficient ways to make delivers. For instance, in NYC they have used electric trucks. In 2008, UPS started hiring bike delivery people in Vancouver, Washington; Portland, Salem, Corvallis, Antelope, Eugene, and Medford, Oregon (Wiki.)

    Lately, actually since last month (October 2011), I have been seeing golf cart-type vehicles running around Padre Island Texas where we live. The Island Community recently made it lawful to drive golf-cart type vehicles on the Island’s secondary roads. So what does UPS do? They are now making deliveries on Padre Island using a gas-powered, open vehicle (see picture to right). A delivery was made today (11/30/11) to our complex, and I took the opportunity to talk to the driver, a young lady. She really likes the new cart delivery vehicle over driving a truck as it is much more maneuverable and easier to park.. She also enjoys being “outside” in the warm winter Texas sun (it’s 70 today.)

    So what and how do the logistics work? UPS has, with the Island’s blessing, positioned a POD in two strategic places on the Island. Regular trucks in the dead of the night bring the next day’s deliveries to the PODs, where the carts are also stored over night. The drivers also hand carry gas for the carts and make certain they are filled and serviceable. What a way to save on fuel, have more efficient delivery of packages, and be kinder on the environment. UPS has been responsive to changes in local regulations and taken competitive advantage of the evolving laws for vehicles and in so doing changed their business model for Island delivery. Now that’s being entrepreneurial! Hank (A picture of one of their PODs is below.)

     

    10 responses to “UPS & Innovation”

    1. This post is so neat. Honestly, UPS is probably one of the last companies that comes to my mind when thinking about innovation. The small but extremely practical steps like avoiding left turns are the kinds of things I too tend to think about in my day to day life (for instance, I’ll store tennis shoes in my car trunk so after school I don’t have to go all the way back up to my 3rd floor apartment — and I can just grab what I need from my trunk and then hit the clubhouse gym). Small efficient steps are so necessary for ‘rising to the top.’

      I’m really glad you posted this article on UPS. It helped me see their company in a whole new light.

    2. Last year I got to see the Indianapolis FedEX (runs very similar to UPS) hub from midnight to 2 am or so. It was one of the most interesting experiences I ever had; I definitely expect companies like FedEX and UPS who dominate the logistics market to innovate and be around for a very long time. Maybe someone at UPS or whatever company manufactures the golf-carts could make a special electric vehicle specifically for these short distance deliveries from the PODS to further increase efficiency and savings.

    3. UPS is a extremely innovative company that is changing daily it seems like just so they can be the best. Making this change makes a huge difference in how they are doing business. Although they are starting to get away from the original “Brown Trucks” they are still making it happen. Not only is the carts a great idea, it is also a lot more cost efficient. UPS is a company that has had a lot of success and they will continue to do so.

    4. Once you dive into something, you will become an expert of that. I heard that Japanese companies also applied those practical ways of saving energies and times. I have never imagined that it took UPS so much thinking to ship stuffs.

    5. I think that UPS is a company that is always finding the way to better them selfves so they will remain the top company. They are very innovative to my oppinion. I belive this company as long as they keep focus and remain in a postion to keep up with the most efficient ways will remain the top company

    6. I heard a few years back that the reason UPS was so reliable was that they do things like making sure they have no left turns but I never really knew if it was true because I never saw a source or talked to a driver. However, I love UPS over FedEx or any other delivery company. In my statics class we got to see a video of shipping factories and how they work a bit and I thought it was interesting. Last note, in regards to this specifically, I actually saw one of the golf carts running around by my hometown which I thought was interesting. It was on a nearby campus and I thought it might have been a campus only thing seeing as how they also use golf carts for departmental deliveries and such but its neat to see that UPS picks up the ideas for making package transit and delivery more simple.

    7. I think more companies should take a page out of UPSs book and search for innovative ways to cut costs and save on fuel. I think this a great example of how the great solutions are sometimes not obvious at first. Its little moves like this that will push a company ahead of its competitors in the long run.

    8. UPS is always been a company i could trust to deliever/receive a package. This shows that their always expanding on new ideas. I believe this is great as it is very cost saving. I can not wait to see what else UPS has up their sleeve for us in the future.

    9. Carly Derheimer

      I believe companies like UPS and FedEx will never struggle because our world has become wireless. If you can’t find it in your hometown, you can online. Personally, I shop online a lot due to poor selection in West Lafayette. I have never had any issues with UPS or FedEx, and my packages have never been lost or damaged. I have also noticed that the workers of both companies are extremely friendly and usually always have a smile on their face. I have also heard that they treat their workers well, and they have a decent pay. The online feature where you can check your package status online is also a great tool that customers like as well.

    10. I personally think UPS is doing a great job at innovating and making their job’s easier while also having the environment and its customers in mind, with such companies such as UPS one can always rest assured that once all their online shopping has been done and the item has been shipped they wont have to worry about any thing.

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