Market Trends
Essay Preview: Market Trends
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Technological advancement has been a major focus of UPS. With a $1 billion annual budget just for IT the need and desire for IT advancement is obvious. The current market trends for UPS are focused on synchronizing global networks to ensure accuracy and efficiency of deliveries. UPS offers an array of technological solutions for consumers shipping needs. Solutions such as automated shipment processing, visibility services, UPS Electronic Data Interchange (EDI), UPS Ready Program, UPS Customer Technology Program and as most recently, UPS Wireless and UPS OnLine Tools (UPSBT, 2008). Much of the future technology employed by UPS is focused on environmentally sound technological solutions while increasing accuracy and efficiency. Currently, UPS is testing a system called Telematics which is a program which records more than 200 vehicle related elements and uploads the information to a massive data center for analysis. The program is designed to provide insight into a vehicles performance and condition, and more accurately determines the right time to bring trucks into the shop for repair and maintenance or to place the less efficient truck on a shorter route. During the initial trial the average in gas savings was $188 per truck. With over 90,000 trucks the potential savings is significant. The initiative is helping UPS reduce energy consumption and environmental impact by optimizing dispatch planning and driver routine to reduce overall driver miles and optimizing vehicle performance and fuel economy (UPSP, 2008).
Productivity
Current market conditions for UPS has some ups and downs. One of the large downfalls in productivity trends is the rising price of fuel. Continuous rise of fuel prices has caused the company to cut their earnings forecast from 97 cents to $1.04 per share to 83 to 88 cents per share. UPS was hoping to offset gas prices with international sales but unfortunately, for UPS that was not the case