United Parcel Service: Delivering on Their Success

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Case Background UPS is known around the world as a leader in package delivery. It was founded in 1907 by James Casey in seattle, Washington with a capital of $100. UPS started as the American Messenger Company. In 1919, they began service in Oakland, California and adopted the name United Parcel Service. Today, it has developed into a $49.7 billion business. In the mid 1920s they developed the first conveyor belt system to handle their packages. UPS continued to expand its operations across the united states throughout the early 1930s and into the 1950s. in 1975, UPS began servicing all of the 48 contiguous states of the USA; two years later they were able to reach all 50 states with the expansion of air service. In 1988, UPS was granted permission to operate its own aircraft, they became an official airline company and UPS Airlines was launched. Within the span of 1 year, UPS had expanded its operations to more than 175 countries around the globe. In 1992 it added electronic package tracking and was delivering 11.5 million packages to more than one million customers in over 200 countries. Two years later UPS launched its own website as part of the worldwide growth in internet-based companies and services. UPS became a public company on November 10, 1999 and sold 10% of its stock as part of its initial public offering. During the start of the 2000s, UPS offered many services including rate calculation and transit times to wireless devices for its customers. The company also witnessed an increase in online tracking requests, setting a record of 6.5 million requests in a day. Their 2012 net revenue is an estimated $9.1 billion. UPS has transformed from a tiny messenger service into the world’s largest delivery company. Statement of the Problem For United Parcel Service, being the world leader in packing delivering has a huge trade off in our environment.

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