United Parcel Service Goes Global
From the corner store to the mega box chain these companies have one thing in common they all operate from a mission statement. In smaller companies this can be as simple as an oral promise to treat everyone fairly. In larger organizations this is a written policy that tells the world these are the standards by which we operate this company. UPS started as a small company in Seattle and has grown into a global powerhouse that follows the same philosophy today as it did in 1907 ‘ the right thing to do’.
James E. Casey’s believed that the only way to do business was to adhere to strict policies of customer courtesy, reliability, round-the-clock service, and low rates; these principles, which guide UPS even today, are summarized by Jim’s slogan: best service and lowest rates. (UPS/history. com, 2006) UPS’s mission statement not only outlines the company’s philosophies but show the hierarchy of accountability that is the foundation of UPS.
A modern time combined with far reaching branches of the company has made it necessary for UPS to establish a method to hold everyone accountable. UPS Compliance Department was enacted to give everyone that comes into contact with the company as place to go to with concerns as shown in the mission statement. The department ensures that the company worldwide is in compliance with the values and standards set forth in the mission statement and should they fall short of the ideal there are procedures and remedies in place to take the necessary corrective action.
UPS expects everyone that does business with them to follow the same high standards and they use several different methods to communicate the “Code of Business Conduct’. Every employee receives the code in a 5×7 format that allows the code to be accessible at all times. The code has been translated into 29 languages and distributed worldwide. Given the global reach of the code UPS executives have not only translated the code into these many different dialects but made it relevant to the local customs and language.
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UPS management is required to attend various training sessions all geared at helping them ensure that all aspects of the value system and mission statement are adhered to from the beginning to the end of the customers experience with the company. The employees of UPS use the company’s governance as the guiding principle for how the business is run. The employees believe in integrity, reliability and trust since they were founded in 1907. UPS also calls the structure their Plan of Action and takes it seriously.
In that Plan of Action it states: United Parcel Service was the third name to grace the company by 1919 however it would be the last since it embraced the company’s mission. “The word “United” served as a reminder that the company’s operations in each city were part of the same organization, “Parcel” identified the nature of the business, and “Service” indicated what was offered. ” (UPS. com, 2006)
They current offer service to over 200 hundred countries, they are divided into ten regional areas; Africa, Asia, Australia/New Zealand, Caribbean, Central America, Europe, the Middle East, North America, and South America. UPS has international air hubs in Cologne, Taipei, Miami (to serve Latin America), in intra-Asia UPS – 5 hub in the Philippines, and the UPS world port in Louisville, Kentucky. With UPS having the international network, they facilitate the three flows of the global supply chain, which are, goods, information and funds for businesses worldwide.
The extend of services may vary from country to country but one thing remains constant is the desire to do the right thing for the customers and the shareholders. UPS operates with a centralized and decentralized organization structure as do many global companies today. UPS production facilities, sorting hubs, are decentralized; if the production was centralized to one certain area, delivery would be much slower and much less efficient.
The costs would also be much higher. (UPS. com, 2006) United Parcel Service serves over 7. 9 million customers daily, handles more than 18.5 million packages and documents daily and has over 92, 277 different delivery vehicles including package cars, vans, tractors, motorcycles and air craft and therefore need many brick and mortar delivery services throughout each country. UPS has more than 1,200 different supply chains and overnight delivery services throughout the world. (UPS. com, 2006) While a multitude of languages and cultural differences are a part of doing business globally; UPS has a set formula from the equipment they use, the uniforms for employees, and expectations of high customer service.
No matter what area of the world they are in the brown trucks and uniforms are universally identifiable. Though the production is decentralized, other aspects of the company are more centralized. The ownership, international sales and marketing, financial aspects, operation management, communications, brand management, compliance issues, legal aspects, public affairs, human resources, information and research are all centralized to UPS – 6 chief officers, presidents and vice presidents of the company.
Packaging requirements may also vary throughout different areas internationally. The products available to different countries may also vary. Of course language on packages, guidelines, advertisements and such would differ from country to country as well. We will continue to expand our distribution and supply chain solutions to synchronize the world of commerce – the flow of goods, information, and funds.