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The recently announced acquisition of Coyote Logistics by UPS conjures up memories of the origins of UPS and the strategic journey to their present position in the logistics and supply chain world. Some logistics and supply chain professionals may not be aware of the relatively humble begin-nings of United Parcel as a small package delivery service for major retailers in East Coast cities like NYC, Philadelphia and Washington, D.C. Many urban families lived in very modest homes and did not own automobiles. They would use public transportation (bus and trolley cars) to get to the central districts in the city where the large multiple-story department stores were located to shop for non-food items, normally not available in the smaller neighborhood retail stores and/or to see more variety. If they had too many packages or the items were too large for the transit carriers, the items could be delivered by United Parcel. It was an invaluable service “for the times,” but “times change.”With the end of World War II, there was pent up demand and increased household savings from the War years. Families started to move from small, urban homes to larger suburban residencies with individual lots and most families acquired an automobile for convenience and shopping. This Post-War phenomenon had serious implications for United Parcel as retail stores started locating in shopping malls with free parking for shoppers which lessened the demand for parcel delivery. United Parcel had to do an evaluation of their business model and strategy, and ask the classic question, viz., “What Business Are We In.”United Parcel essentially answered the question by stating that they were a transportation company that specialized in moving small packages between and among businesses as well as residencies, that is, business-to-business, business-to-residences, and residences-to-residences. This restate-ment of their mission opened up many new opportunities but presented some major challenges going forward. Intrastate and interstate transportation carriers were highly regulated by the federal government and state agencies where operating authorities had to be approved. It was especially challenging for approval of interstate service. Also, it put them in direct competition with the U.S. Post Office which offered similar service but not direct pick-up at businesses and homes. Over time they mitigated these “roadblocks” and with the elimination of federal regulation of motor carrier transportation at the federal level, they could move ahead more aggressively. However, deregulation of transportation also provided an opportunity for another potential competitor, viz., Federal Express. Initially one could say that UPS provided surface transportation service and FEDEX provided air service. However, that distinction has become blurred over time as both companies moved aggres-sively to grow and expand.Both UPS and FedEx have used acquisition of established companies to expand the scope of their services and global geographic reach. The end result has been the development of two successful organizations who started as delivery companies and have become much more comprehensive logis-tics service companies who offer a variety of services for businesses and individuals. UPS is currently ranked fourth as a 3PL with almost $6 billion in revenue. Both companies have become household names as they have rode the wave of interest and expansion of logistics and supply chain manage-ment into the twenty-first century by providing service on a global basis.Their ability to identify and meet the needs of global organizations has accounted for their growth and expansion, but competition and the need to be more efficient and effective has necessitated a continual effort to improve and stay ahead of their rivals. Coyote Logistics appears to be a “gem” in terms of a “fit” for UPS just as GENCO Distribution was for FEDEX. The latter provided entry into the ever growing product returns or reverse logistics business for FEDEX. UPS is looking to expand aggressively into the freight brokerage which is an important part of Coyote’s success and profitabil-ity because of their development of a proprietary scheduling technology for managing that service. This same technology should be a major benefit to UPS to handle their fleet of trucks especially during the peak holiday season which has been a serious challenge for UPS during the last several seasons. The key takeaway here is that UPS has been able to change their internal operations and business model to meet the challenges and changes occurring in the external environment and to recognize the criticality of the “final mile” of the supply chain which is essentially a logistics function. Maybe the title of this piece should be “Coyote Logistics and Wiley UPS”?

 

 

STUDY QUESTIONS
1. Provide a definition of logistics and a rationale for why is it important in private companies and public organizations?
2. Explain the importance of logistics important on a macro level and the contributions of logistics to the economy?
3. How does logistics add value in the economy? How does logistics add value for firms? What, if any are the differences?
4. Explain the relationship between logistics and supply chain management?
5. Compare and contrast the four major subdivisions of logistics discussed in this chapter.
6. Discuss the relationship between manufacturing and logistics. What are the tradeoffs between the two areas?
7. Physical distribution has a special relationship to marketing. What is the nature of the relationship between logistics and marketing? Is the relationship becoming more or less important? Why?
8. Logistics encompasses a relatively large number of managerial activities. Discuss five of these activities and why they are important to logistics systems.
9. Why do companies analyze their logistics systems from perspective of nodes and links?
10. What product characteristics affect logistics costs? Discuss the effects of these charac-teristics on logistics costs.

 

Sample Answer

Compelling correspondence is essential to the achievement all things considered but since of the changing idea of the present working environments, successful correspondence turns out to be more troublesome, and because of the numerous impediments that will permit beneficiaries to acknowledge the plan of the sender It is restricted. Misguided judgments.In spite of the fact that correspondence inside the association is rarely completely open, numerous straightforward arrangements can be executed to advance the effect of these hindrances.

Concerning specific contextual analysis, two significant correspondence standards, correspondence channel determination and commotion are self-evident. This course presents the standards of correspondence, the act of general correspondence, and different speculations to all the more likely comprehend the correspondence exchanges experienced in regular daily existence. The standards and practices that you learn in this course give the premise to additionally learning and correspondence.

This course starts with an outline of the correspondence cycle, the method of reasoning and hypothesis. In resulting modules of the course, we will look at explicit use of relational connections in close to home and expert life. These incorporate relational correspondence, bunch correspondence and dynamic, authoritative correspondence in the work environment or relational correspondence. Rule of Business Communication In request to make correspondence viable, it is important to follow a few rules and standards. Seven of them are fundamental and applicable, and these are clear, finished, brief, obliging, right, thought to be, concrete. These standards are frequently called 7C for business correspondence. The subtleties of these correspondence standards are examined underneath: Politeness Principle: When conveying, we should build up a cordial relationship with every individual who sends data to us.

To be inviting and polite is indistinguishable, and politeness requires an insightful and amicable activity against others. Axioms are notable that gracious “pay of graciousness is the main thing to win everything”. Correspondence staff ought to consistently remember this. The accompanying standards may assist with improving courtesy:Preliminary considering correspondence with family All glad families have the mystery of progress. This achievement originates from a strong establishment of closeness and closeness. Indeed, through private correspondence these cozy family connections become all the more intently. Correspondence is the foundation of different affiliations, building solid partners of obedient devotion, improving family way of life, and assisting with accomplishing satisfaction (Gosche, p. 1). In any case, so as to keep up an amicable relationship, a few families experienced tumultuous encounters. Correspondence in the family is an intricate and alluring marvel. Correspondence between families isn’t restricted to single messages between families or verbal correspondence.

It is a unique cycle that oversees force, closeness and limits, cohesiveness and flexibility of route frameworks, and makes pictures, topics, stories, ceremonies, rules, jobs, making implications, making a feeling of family life An intelligent cycle that makes a model. This model has passed ages. Notwithstanding the view as a family and family automatic framework, one of the greatest exploration establishments in between family correspondence centers around a family correspondence model. Family correspondence model (FCP) hypothesis clarifies why families impart in their own specific manner dependent on one another ‘s psychological direction. Early FCP research established in media research is keen on how families handle broad communications data. Family correspondence was perceived as an exceptional scholastic exploration field by the National Communications Association in 1989. Family correspondence researchers were at first impacted by family research, social brain science, and relational hypothesis, before long built up the hypothesis and began research in a family framework zeroed in on a significant job. Until 2001, the primary issue of the Family Communication Research Journal, Family Communication Magazine, was given. Family correspondence is more than the field of correspondence analysts in the family. Examination on family correspondence is normally done by individuals in brain science, humanism, and family research, to give some examples models. However, as the popular family correspondence researcher Leslie Baxter stated, it is the focal point of this intelligent semantic creation measure making the grant of family correspondence special. In the field of in-home correspondence, correspondence is normally not founded on autonomous messages from one sender to one beneficiary, yet dependent on the dynamic interdependency of data shared among families It is conceptualized. The focal point of this methodology is on the shared trait of semantic development inside family frameworks. As such, producing doesn’t happen in vacuum, however it happens in a wide scope of ages and social exchange.

Standards are rules end up being followed when performing work to agree to a given objective. Hierarchical achievement relies significantly upon compelling correspondence. So as to successfully impart, it is important to follow a few standards and rules. Coming up next are rules to guarantee powerful correspondence: clearness: lucidity of data is a significant guideline of correspondence. For beneficiaries to know the message plainly, the messages ought to be sorted out in a basic language. To guarantee that beneficiaries can without much of a stretch comprehend the importance of the message, the sender needs to impart unmistakably and unhesitatingly so the beneficiary can plainly and unquestionably comprehend the data.>

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