UPS India notes PDF

Preview

Summary

Article Summary/Notes ...

Description

UPS in India- Time to Shift Gears? - Indian Prime Minister Narendra Modi implemented a reform- Good and Services Tax (GST) - All other indirect taxes would be subsumed and a standard GST would be levied on most goods and services - The geographical boundaries are now irrelevant because of the new tax model and use of technology makes it more efficient - 80% of UpS’s annual rev came from US, remaining 20 from European operations - Absence of India in the growth from 2015-2016 in the middle east countries - UPS had experience in over 200 world wide market places. - “Merchants Parcel Delivery” built its reputation based on personal customers service and the care of each package - Entered a golden era of domestic expansion in 1919 - UPS shifted its focus to b2b when customers moved to the suburbs out of the city after the war Common Carrier Rights - UPS decided to pursue common carrier rights, meaning it could deliver packages between both private and commercial customers - Was able to expand operations to all 48 states by 1975 - By 1978 nationwide air services were available by flying packages in cargo bays of commercial airlines UPS Airlines - UPS acquired cargo jets in the 1980’s because of the reduction of air freight capacity - Offered next day air services to all the US states by 85’ - By 1988 UPS was recognized by the Federal Aviation Administration - Was the fastest airline startup in FAA history, only one year to get all systems in place - Switched to a global service throughout the 90’s → 200 countries globally Going Public - In 1997 there was a union strike of about 185,000 UPS workers who wanted employee pension funds and objected to UPS’s increasing use of part-time workers - UPS controlled about 80% of all package delivery in the US→ strike for 15 days was bad for company and customers→ $650 mill lost in business Synchronized commerce - No longer restricting itself to delivery services by redefining itself because of external environment changes - Tailored to its customers’ business process value chain - Created the UPS Logistics Group in 1995 to streamline service operations over its customers based and provide financial products and services to help small businesses grow - They modified the supply chain for the flow between buyers and sellers (Synchronized Commerce), UPS was able to synchronize goods, info, and funds to deliver more products and services to its customers - They acquired Mail Boxes which enabled UPS to target smaller businesses and increase its accessibility to residential and home-office customers - Largest rebranding campaign in history of over 3,000 mailboxes switched to UPS store brands - UPS offers an extensive portfolio of products to our franchisees and their customers - Focuses on innovating existing business operations internally and externally and likewise focused innovation on new entrepreneurial ventures both internally and externally. Hub and Spoke Model

-

Centralized and integrated approach to logistics management A (hub) center, where packages are sent for consolidation, and spokes that link the hub to all other points in the system - FedEx pioneered the hub and spoke system in the US domestic express delivery sector and then extended it to its international operations UPS brand and culture - UPS stresses employee ownership to get its people to feel responsible and involved - Cultivates a loyalty to employees by “promote from within” The India Story - India has surged ahead as the fastest growing large economy in the world beating China and clocking a growth rate of over 7% while keeping the inflation under check to significantly low levels - Optimism in the sectors of infrastructures, financial services, technology, automotive and healthcare Economic Reform - The first 40 years took an extreme protectionist stance, based on collective action as opposed to capitalism acquisitiveness - Limiting growth due to required permits and regulations - Indian economy dragged along at a subsistence level with a low GDP per capita - Support for international trade through the achievement of 2 key foreign trade policy objectives in 2004 - 1) double india's percentage share of global merchandise trade in a five-year period - 2) use trade expansion for both employment generation and economic growth - Special Economic Zones (SEZ act 2005) Key Industries - Indian GDP tuned at 61% and growing at about 10% per year - Ains to enhance the share of manufacturing to 25% within the next decade and creating 100 million jobs - Boost demand for logistic and warehousing services with a focus on integrated supply chain Transportation Sector - 3.3 million km, India has the second largest road network in the world - 60% of the total good and 85% of the total passenger traffic in the country - India's railway system encouraged to use for haul construction materials around the country’ - 1951 the railway was nationalized and integrated into one unit to form one of the largest rail networks in the world - Indian government is aiming a major boost to waterways sector by allowing of up to 100 percent FDI for projects related to construction and maintenance of ports and harbors Logistics Industry in India -...