Importance Of Technology Investments In The Logistics Service Providers: A Case Study Of UPS And Its Use Of Online Tools

Abstract

Logistics service providers must become competitive in mail delivery, customer relationship management (CRM) strategies, and technological integration.  UPS, for example, uses a logistics service strategy to effectively manage the logistical requirements for its 7.9 million daily customers.  Within the competitive market of parcel delivery, logistics service providers must routinely invest in technology in an e-commerce environment in order to successfully develop strategies to meet the demands of B2B and B2C customers, while accomplishing customer efficiency and return on investments.  This strategy has helped logistics service providers to leverage their core competencies; in particular for UPS to become the shipping industry leader in e-commerce.  This research outlines the history, inner workings and culture of UPS, while simultaneously examining the subtleties, which have led to the company’s extraordinary success.  Throughout this analysis, the research will show that in fact there is a rather complex model, which allows UPS to function, as it incorporates B2B, B2C, investments in technology and on-line tools into an outcome of seemingly effortless customer efficiency.