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UPS: the chocolate-colored shipping behemoth On its way to becoming the largest package delivery company in the world, United Parcel Service (UPS) has become synonymous with its industry. Today, UPS' 500 airplanes, 147,000 chocolate-colored trucks, and 2,400 facilities reach over 200 countries and every American address. First Seattle, then the world Founded in 1907 by a 19-year-old Seattle teenager who employed a team of boys to deliver luggage, parcels, and store purchases, UPS matched company growth with innovation. The company pioneered the idea of "consolidated delivery," which streamlines performance by combining packages addressed to the same neighborhoods. UPS introduced its service to the general public after World War II, and had its national network in place by 1975. Its international network was set up soon after. In 1988, UPS received approval to operate as an independent airline, and it is currently the nation's ninth-largest, even offering weekend charter flights. Angry drivers, angry customers In 1997, UPS drivers staged a 15-day strike that reminded the world just how essential UPS was to the economy. The company sustained hundreds of millions of dollars in lost business. Much of the public began siding with drivers, who were protesting the company's extensive use of non-unionized, low-paid part-time drivers. Luckily for the company, low fuel prices in 1998 - along with the company's vast shipping network - prevented too many defections. One step backwards, two steps forward But UPS didn't escape from the strike totally unscathed. The company's domestic shipping volume fell four percent in mid-year 1998, while rivals RPS and FedEx grew their domestic market share. UPS's overseas traffic, however, has kept the company buoyant. The company won a $400 million contract with the Taiwanese government, for example, to build an Asia/Pacific hub in Taipei. IT leads the way One reason for UPS's continued dominance is its innovative information technology division. UPS has spent $10 billion to improve its IT infrastructure since 1994 and continues to spend $1 billion a year. The massive IT system is beneficial because it allows the company to record a delivery 30 minutes after it happens (thanks to satellite transmitters in trucks). In other lucrative news, the company's UPS Worldwide Logistics, an IT outsourcing firm, earned $1 billion in 1998. IPO Fever In July of 1999 UPS announced that it would offer roughly 9.1 percent of the company to the public. In the months leading up to the November sale, high expectations were affixed to the IPO, which was predicted to be the largest ever. Months of speculation manifested in reality when the IPO generated $5.47 billion dollars, giving UPS a market capitalization of $81 billion. The company will use the cash influx to buy back around 10 percent of the shares it has been issuing to its employees for several decades. In addition, UPS now can use its stock to leverage acquisitions. Recent acquisitions in Asia and the Caribbean increased the company's rapid-response time in those regions, though UPS claims the deals were unrelated to the previous year's record-setting IPO. United Financial Service Not only is UPS the world's largest transportation company, but it set its sights on financial services as well. In June 2000 UPS Capital began offering loans, services such as small-ticket leasing, and most importantly, electronic payment options to their customers. The company will work with partners Bottomline Technologies and Princeton eCom for the service. UPS launched a storefront, Brown & Brown, in May 2000 to demonstrate to customers how UPS' advanced shipping applications can be incorporated into web sites. In addition, UPS began leasing out office equipment, to complete its supply-chain menu.
UPS offers corporate hiring information through a Web page, located at www.upsjobs.com, including a list of current job openings and contact information. The site also allows potential candidates to complete their profile, attach their resume and select the job opportunity they are interested in. The Web page also provides information on package handler positions. Package handlers, however, must be able to lift up to 70 pounds. UPS does much of its hiring from within, and almost all UPS drivers start as package handlers.
Size and scope do matter Many UPS employees, especially in management, praise the company's culture. One insider reveals, "I work in telecommunications, which on the surface doesn't seen to have anything to do with package delivery. That's the best thing about UPS: it has so much to offer and so much to explore." Says another: "You work hard, but you can feel that you've made a difference." Hard work, high rewards Employees praise the generous stock purchase plan, which leads to both financial rewards and a more committed workforce. "Because managers strive to listen to employees and reward quality work, even recently hired employees are able to contribute in significant ways," one employee says. UPS places high demands on its employees through a "fast-paced," "hard-working" corporate culture. "Working for UPS, the day goes by very fast," says one informant. "There are always daily routines, but out-of-the-ordinary things always come up: package cars may break down, or computers may crash." "We are empowered to make decisions and encouraged to give feedback that will improve our jobs and work environment," says another. Though UPS compensates employees with a "consistently high" pay scale and "frequent" chances to land "merit-based" promotions, work can sometimes overwhelm personal lives. "Although the company does its best to help out the community and to help out its employees and its families, there is a strong work ethic, especially in the package centers where the real work is done." As far as dress is concerned, UPS requires "formal attire for all who interact with customers or vendors." Drivers, of course, must wear "the browns." Overwhelmingly large, underwhelmingly female Size and tradition can be a hindrance, according to many insiders. "The corporate atmophere is sometimes frustrating; if you have a simple question regarding payroll, you have to go through a maze of people to find your answer. And it can be frustrating trying to change procedures and speed up the turnaround time on ideas." Another insider adds: "The corporate culture reflects its 90-year heritage. UPS is a company of tradition. We are a bit old-fashioned in some ways, such as adhering to formal business dress execept for business casual Fridays." An experienced insider explains, "The UPS culture was traditionally men who at one time drove trucks and moved packages. Because of this, the company has a low number of women in mangement. Now in the 1990s, it is trying to correct that error. It tends to promote women quicker than men." The company also sends senior-level managers to a one month diversity and leadership course.
Human Resources (888) WORK-UPS
Package delivery service;Air flights
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