New Technology at UPS Clashes with Outdated Ways of Working Case Study Analysis
Introduction
UPS is an American multinational company of shipping and supply chain that was founded 115 years ago in 1907. The company is known as the American messenger company that provides shipping, receiving, and supply chain management services to its customers. The company has a strong market presence in the market of United States while Amazon, Airbron express, and FedEx. Furthermore, the company invested in its R&D to improve the management effects and introduce Automated Sortation Systems.
Question No 1
Challenges faced by UPS
The most challenging factor that resists UPS to stay competitive and achieveits core objectives of the business include technical problems and management problems due to which the company could not sustain its business growth in the market. Management and technology is the most significant part of a firm or an organization that helps the company to be strong in the market and successfully achieve its goal and objectives.
Technology problems
Technology is a vital factor in every company,especially in UPS which hasthe efficiency to upgrade the performance of the company. Recently it is observed that UPS used outdated technology due to which the company could not maintain the quality of services and with respect to time the company lost the customer market. However, its competitors have strong technological approaches and investments that enable its competitors to sustain their market as well as develop a strong market presence.So,ultimatelythese scenarios would be challenging for UPS to stay competitive and sustain its market presence. UPS's biggest challenge is to stay competitive with new competitors like Amazon.com, and FedEx and make sure that investments in IT are kept up to date.
Management problems
UPS needs to work on its management issues as the management regulation of the company is essential to sustain the corporate goals and achieve a competitive market. As the technology and management of the company have a direct relationship with each other. In most cases, the company received various complaints regarding the quality of services it is because due to the outdated technology in management the management mainly used the previous data but could not execute the qualitative operations. Themaintenance of quality in the delivery and packaging of the orders could not maintain by the company which reduced the capability of the company to sustain a strong brand presence and competitiveness. So UPS needs to concentrate on its R&D to improve the efficiency of the m, management, and market.
Question No 2
The solution pursued by UPS
The solution that the company pursued is the implementation of automation in the company and the basic goal of UPS is to automate aging facilities so UPS can reduce the workforce and the total time consumed, option. However, the automation system can be useful for the company to reduce the management problem and help to maintain the quality of services that allows the customers to be satisfied with the services of UPS. The company focuses on automation due to the various issues faced by the company including high consumption of time, high management costs due to the requirement of a large number of employees, and the packaging of the products and delivery issues. So, to reduce the cost of management and increase the output UPS introduced the automation system by investing in R&D which is very effective for the company to regulate the issues related to management and services.
Question No 3
Impact of Automated Sortation Systems on UPS
Since 2020, UPS started investing in automation to increase the efficiency of the company to achieve core business growth. The automated Sortation system in UPS has an essential role in increasing the net output of the company which allows the company to retain the highly competitive market and customer market. However, the automated sortation system enables the company to increase the net output of the services and reduce the need for a workforce that enables the company to develop a profitable customer market. The automated package sorting in UPS increases processes by calling for scarcer humanoid touchpoints and automating the mainstream of the process. However, the decision in the company would be based on the actual data rather than the past data. Furthermore, the investment in the R&D and automation allows the company to upgrade the whole operating system of the company while the new automation development allows the management to collect real-time data/information that helps the management of the company to make powerful decisions that help the company to improve the efficiency of the company and reduce the mistakes and risks as the company faced previously. New technology makes it promising for UPS management especially the processing facility managers to be acquainted with precisely how many undeliverable packages they must need to process each night and when they will arrive, which helps them plan work shifts for rerouting the packages (Swasono, 2018)......................
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