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  • Subject area(s): Engineering
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  • Published on: 7th September 2019
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he United Parcel Service (UPS) was founded in 1907 has been the front runner in providing global logistics services. With the advancement in technology, human and global resources, UPS has maintained an edge over the competition for decades. As of today UPS employs more than 400,000 people worldwide and services over 220 countries. Let’s take a look and see how they’ve maintained their competitive advantage.

Adapting to external environmental changes in a challenge within itself and understanding these impending shifts in trends will undoubtedly prepare a company for what is to come. “This was a topic of discussion at the recent Economist Sustainability Summit in London, where I joined IBM, Autodesk and Thomson Reuters to discuss how our companies are using data create a more sustainable world. Our world is facing a growing number of game-changing issues. Population, growth, climate change, water scarcity, pollution, poverty and hunger – just to name a few and these problems require solutions that are designed, managed and measured with data in mind. That’s where the engineers come in. We’re consumed by the need for greater efficiency, which often creates environmental benefits as well.”(Longitudes) As you can see, as the world changes, UPS must find new ways to innovate themselves accordingly.

UPS has an immense and constantly growing customer base. Currently UPS services more than 9.8million customers daily and also has more than 58.3 million tracking requests daily. UPS has an innovative philosophy that stems from the ability to have a comprehensive global initiative. Maintaining a proper philosophy is imperative in maintaining the competitive edge. ”UPS separates its products by Differentiation Industry-Wide. Rather than focusing on price, UPS focuses on having the best service across the industry. We offer a relatively inexpensive service that can help customer’s ship packages practically anywhere. We promise


great customer service and timely deliveries. Our prices have gone up in recent years in comparison to our closest rival FedEx, but our quality and service has not been diminished. With new technology we have been able to deliver products faster and more efficiently to your front with sustainability. UPS has a leadership philosophy that details their global focus. “(UPS.TEAM) Here are some lessons that UPS has learned over the years to make sustainable investments.

1. Encourage innovation

2. Adapt and tailor the solution

3. There’s no substitute for real-world big data

4. It takes consistent, unwavering commitment from leadership

5. Partner, promote and report progress (PressRoom)

UPS has been proactive is consistently seeking out new businesses while responsibly servicing existing accounts. They have been successful in creating successful inroads in to area some areas of the world which at one point would seem unrealistic or unimaginable. The European and Asian market is an area in which UPS has focused on and allocated a lot of resources to solidify those specifics markets. Recently UPS announced the plan to open a centralized hub in Paris France in 2018 which will give them an immense competitive advantage for years to come. “PARIS, June 28, 2016 - UPS® (NYSE: UPS) held an official cornerstone laying ceremony to announce plans to build a new package sorting and delivery facility in Corbeil-Essonnes/Evry.


The French Prime Minister, the mayors of Corbeil-Essonnes and Evry and other dignitaries attended the commemorative event. The more than $100 million facility, due to open in the first quarter of 2018, will replace two smaller facilities and is expected to create more than 100 new UPS jobs. The site will be a showcase for UPS\'s automated package sorting technology which minimizes time in transit to final delivery. This is a prime example of maintaining an edge over the competition. Without the necessary investment in to research and development, the Paris deal would be just an afterthought. UPS is obviously known for global logistics but there are other factors which make them a front runner in their industry.

“UPS (NYSE: UPS) today announced the company has achieved its goal of driving 1 billion miles in its alternative fuel and advanced technology fleet one year earlier than planned, and marked more than 10 years of learning from its “Rolling Laboratory.” UPS’s long-term commitment to sustainability is transforming commercial transportation and logistics, spurring growth in the clean fuels market and powering critical engineering advances. The company’s wider sustainability progress is detailed in the 14th annual Sustainability Report, released today.”(Pressroom) This is a prime example of the steps UPS has taken to improve their advantage while paying strict attention to meeting specific goals that were introduced many years ago. Clean fuel has been an integral part of their path forward as the environmental concerns their services have on the planet are a major cause for concern, therefore UPS has invested tens of millions of dollars in to alternative fuel vehicles.


UPS has maintained flexible strategies and procedures to meet the diverse requirements of its customers and stakeholders. This is apparent when you analyze the customer loyalty stats compared that that of FedEx. “UPS has a clear-cut advantage in terms of service locations and history. It has 64 additional years of company history under its belt than FedEx, which was founded in 1971, making it the logical choice to appeal to multigenerational groups of people.” (FOL) Another factor which is also the benefits the employees receive at UPS compared to FedEx. “In 2010 that the average UPS driver made $17.88 more an hour, predominantly on the health benefits and pension side of the equation, than the average FedEx driver. Generally speaking, a better cared-for worker in terms of wages, health benefits, and retirement benefits is more likely to stick with a company longer and represent the brand in a positive light. “

UPS has definitely maintained the competitive edge in many respects and with their global innovative approach and continuing to maintain responsibility in leadership, it will keep them as the front runner for decades to come.

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