From the e-Activity, determine the functional level strategy of both UPS and FedEx. Next, compare and contrast each company’s quality practices and level of responsiveness to customers. Note: Be sure to relate the "Six Strategies for Creating Competitive Advantage” from the video into your response.
UPS and FedEx’s functional level strategy is to provide its customers quick and efficient services at the lowest operating costs. Both companies invest heavily in technological advancements to provide quality and expeditious services to its customers by strategically locating their operations within three hours (flying) of 70% of the U.S. customers. Both are very similar in their strategic planning of reducing transportation time and costs while increasing product delivery speed to the customer.
UPS and FedEx both use barcodes which provides critical data- they have a scan tunnel that processes packages at an optimal rate and scans the dimensions of the packages (used for maximizing space). Both companies usilize sorting technology to sort, scan, box and load packages onto the planes enabling FedEx to deliver 8 million packages per day and 15 million for UPS. The companies use a preload assist system that labels packages so that employees know exactly what truck the packages go on. Whether, rain, sleet or snow these two delivery giants must be able to deliver these packages on time otherwise any other facilities will have to work faster to make up the time.
FedEx can tracks its packages, the contents of the package, the temperature, how fast the contents moving and even if the packages are opened. UPS’s strategy to cut costs and uses efficiency techniques such as optimizing right turns over left turns save money and provides for a safer workforce. The drivers get their daily instruction routes which are pre-mapped and no long have to memorize routes. Maximizing transportation cost is c