BrownCafe
If the trajectory of American daily life keeps heading in its current direction, the country may end up with only two dominant occupations:
— Carrying stuff in boxes to people’s houses.
— And keeping a watchful eye on those same people so they don’t hurt each other or steal things when they do leave their homes.
Shipping and logistics is a business where capital intensity and network size really matters. The world’s largest parcel delivery company, United Parcel Service, is showing its biggest two competitors, FedEx and DHL, why its business structure generates higher margins, and thus superior profitability.
To sum it up, the factors that make UPS a great investment case and an amazing company to hold for long-term investment are its greater package volume, concentration on high-margin ground shipping, and use of a single network rather than parallel air and ground operations.
However, its competitors should not be underestimated, as they hold a good position and well-established brands as well.
It only takes a quick internet search of the terms “UPS” and “telematics” to understand why the promised benefits of big data are likely to take longer to arrive than many have been led to believe.
Five years after it started installing sensors to monitor its vehicles and using GPS to track their movements, UPS launched one of its most ambitious technology projects: a system capable of handling the massively complex task of optimising the routes taken by its tens of thousands of drivers. No matter how impressive the technology, it is only as good as the people who use it.
“For the first time in their 100-year history, they can make real-time routing decisions about picking something up and dropping it off,” says Tom Davenport, a US management expert and author, most recently, of Big Data at Work. He adds: “It takes a lot of autonomy out of the job [for drivers]. UPS people say that change management is the biggest issue.”
An 84-year-old Eastlake man got back more than $5,000 he sent to someone who scammed him, thanks to an alert UPS employee, police said.
Eastlake Police Detective Ted Kroczak said the scam started with a phone call to the elderly man.
“They’re actually identifying themselves as federal agents,” Kroczak said.
Kroczak said the convincing scammer told the man he was to get more than $500,000, but first he had to pay the 1% tax on it: $5,250 in cash.
The Idaho Supreme Court recently affirmed the Idaho Industrial Commission’s determination that Michael Vawter, a former delivery driver for United Parcel Service (UPS), was entitled to worker’s compensation benefits when he injured his back while tying his boots at work. Based on this case, it may be difficult for an employer to argue that an injury that occurred on the employer’s premises did not arise out of the employee’s employment.
Mr. Vawter worked as a delivery driver for UPS in Cascade. After clocking in on the morning of December 18, 2009, he sat down and bent over to tie his boot laces. While bending over he felt a pop and pain in his lower back. He sought medical treatment and eventually underwent two back surgeries.
Mr. Vawter filed a worker’s compensation complaint with the Idaho Industrial Commission alleging he suffered a low back injury due to an accident that arose out of and in the course of his employment with UPS. UPS denied the claim. The parties agreed that the injury occurred during the course of Mr. Vawter’s employment. However, there was a dispute as to whether the injury arose out of Mr. Vawter’s employment with UPS.