UPS has a customer service strategy of prioritizing them while offering the most effective digital services in global logistics operations. In this case, the company ensures customers find an easy way of doing business with UPS. Regardless of such a strategy, UPS experienced a drastic change in its financial status due to not meeting customer requirements during the Christmas season (Liu & Lai, 2016). One can project the shortfall incapacity to reach over a million packages per working day, affecting revenue accumulation and sales. In addition, such a result is threatening since the delivery demand is high, and the company spends a lot to cope with the high demand and potential inconvenience. The giant company exceeds its maximum shipping capacity, and there is a need for notification to regulate the client’s trend (Liu & Lai, 2016). Though UPS has to maintain its reputation, the company failed to keep quarter revenue estimations of revenue over the previous years due to missing estimates and lack of accountability to the issue.
On the other hand, UPS can lease fourteen aircraft and expand the automation packaging. In this case, the automation package will handle a broader range of products exceeding four hundred thousand and add one hundred thousand new employees for particular responsibilities (Liu & Lai, 2016). The recruits will work on a short-term contract basis, and their sole role will entail handling deliveries and peak levels. Implementing such an aspect will help raise UPS shares from nine percent to $155.78. Currently, the company’s revenue surpassed the previous record by growing 9.2% to over twenty-three billion dollars; the above data shows results that will elevate financial margin compared to other holiday seasons. In addition, having the right people at the right time will help avoid and mitigate any delays that might cost the company’s financial target during such a season (Liu & Lai, 2016). However, there is a need for coordination, cooperation, and team efforts between the executive, concerned departments, and employees.
UPS created brand equity that elevates its reputation and global image worldwide through its high-quality services and excellent culture. In this case, the culture and its reliability helped the company maintain and solidify its revenue sources, thus gaining a solid foundation financially (Prajogo et al., 2016). In addition, UPS tends to maintain customer loyalty, thus creating a suitable environment for longer relationships, thus dominating their revenue. On the other hand, the company has an extensive distribution network system, thus allowing it to reach every customer and meet their satisfaction. Through innovative and technological approaches, UPS solidifies its financial sources whereby it has an ever-increasing financial performance ranging from fifty-five billion to over sixty-five (Prajogo et al., 2016). However, its weakness lies in the dependency on US domestic market for economic growth; if the domestic market experience any disruption, UPS gets high effects. In addition, the lack of an updated operating system affects UPS highly since its cost reached almost fifty-eight billion.
The Christmas celebrations or holiday season affect supply chain management differently, and one cannot anticipate potential threats. Recently, the pandemic lowered supply chain management in the ports of the US, and goods could surpass the intended delivery period (Lyu et al., 2019). In this case, shoppers or retailers will encounter late delivery of the products since the Covid nineteen variant took a drastic change affecting logistics operations. On the other hand, if the problem affects UPS without letting the intervention of skilled personnel such as HR, the company will continue to experience a shortfall in revenue. Though the company has relatively maintained a steady margin on its revenue collection, it spends a lot on such a period, and customers will lose trust in them (Lyu et al., 2019). However, the company will experience a lack of improvement to dominate the market and gain a competitive advantage due to the loss of customers.
On the other hand, UPS needs to update policies that indicate their stands on any matter related to ethical issues and potential risks. For ages, UPS has followed the foundations of the founders in having principles that define their operations and holding firm on values (Lyu et al., 2019). In this case, UPS abides by integrity to all who depend on their services, honesty, and offering quality operations. In addition, the company prioritizes implementing integrity in their operations since it is crucial to validate one’s trust, especially to customers. Furthermore, UPS guides its mandate from financial issues to the root of business operations on the grass-root by taking proactive approaches. The company uses a tracking system that will capture every step and allow the employee to take a picture to avoid lost packages and arising issues (Lyu et al., 2019). However, such an aspect is essential to prevent negligence that will arise ethical issues, especially during holiday seasons.
Reference
Liu, C. L., & Lai, P. Y. (2016). Impact of external integration capabilities of third-party logistics providers on their financial performance. The International Journal of Logistics Management.
Lyu, G., Chen, L., & Huo, B. (2019). Logistics platforms and locations impact logistics resource integration and operational performance. The International Journal of Logistics Management.
Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes: Linking supply logistics integration, supply performance, lean operations, and competitive performance. International Journal of Operations & Production Management.
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