Logistics Assignment: Comparative Analysis On UPS & FedEx

Question

Task:
Assignment Background
UPS & FedEx
Logistics Assignment highlights the importance of world’s leading Integrated Logistics Services Providers-UPS and FedEx that had positively penetrated almost all markets.

Assignment requires secondary research and comparative analysis on the two Integrated global logistics networks.

The following questions raise global transportation issues that are central to both Integrated Logistics Service provider’s strategy and success:

1. Highlight each Integrated Logistics Service provider global market dominance by identifying each network top 5 markets and top 5 services. Highlight each network’s reach based on economic of scale and distance covered. Select your preference with reason.
2. Differentiate each logistics network based on two important functionalities- Product Movement and Product Storage. Select your preference with reasons to support?
3. Differentiate each logistics network on Fleet sizing and Configuration. Select your preference with reasons to support?
4. Differentiate each logistics network on Routing and Scheduling. Select your preference with reasons to support?
5. Highlight Hub and Spoke operational model of each logistics network along with the various transportation modes provided- air, land and water.
6. Highlight each logistics network’s transportation technological integration bringing efficiency and effectiveness to overall network.
7. Highlight each logistics network’s transportation challenges and issues and clearly select the logistics network that has capabilities to overcome them.

Answer

1. Logistic network	Top Five market	Top five services	Network reach
   FedEx	·         India ·         Australia ·         Afghanistan ·         Azerbaijan ·         Bahamas	·         Sales ·         Communications ·         Customers services ·         Technical support ·         Support transportation	Economy of scale
   UPS Supply Chain Solutions	·         India ·         Germany ·         Europe ·         China ·         Ontario	·         Transportation services ·         Logistic services ·         Customs brokerage ·         Stock trade ·         Freight services	Distance cover

   Logistics Assignment Table 1: Logistic service provider Global market dominance
   (Source: ttnews.com, 2020)

   As per my opinion, the economy of scale is the best use of the logistic networks. The advantages of the cost are reaped by the business involved in global logistic services. The achievement to logistic of scale can be easily achieved by the bossiness with the increase in the production with the limited cost (Abdenebaoui and Kreowski, 2016). The expenditure on the cost of a large number of goods is done by the logistic firms for the elevation of the market position. Although this approach is not much used by the logisticfor, as the strategiesmostly included the criteria of the distance covered.

   The major logistic network in the global domain ismostlytaking up the distances criteria more seriously. As the business executing structure is changing, it is essential for the logisticcompanies to take up measures in dealing with the competitivebusiness (Evtodieva et al., 2016). The annual profit margin of the logistic networkssuch as FedEx supply chain is growingat an increasing scale. It has coveredmost of the parts of China and India, and thus, the economy to scale is sure to bring a boost to global logistic business.

2. Types of logistic networks	Functionalities
   FedEx	Product movement
   UPS Supply Chain Solutions	Product storage

    

   Table 2: Differentiating logistic networks based on functionalities
   (Source: ttnews.com, 2020)

   Ithas been evaluated from the abovetable that the product to storage is the functionality used in the logic networking such as UPS Supply Chain Solutions. At the same time, the use of product movement functionality is effectively evaluated in the case of FedEx. Thus,it can be stated the logisticnetworks are mostly dealing with the productmovementfunctionality. Thus the utility of this functionality is the mostin thelogistic services.

   As per my preferences, the functionality of the production movement is the best. It includes the movement of the bulk of good from one location to the other on time. The execution of the proper management of the logistic measures is helpful in the execution of the logistic services in an excellent manner (Kovalska and Rechun, 2017). The smooth movement of the goods from the manufacture to the retailer are from the retailers to the customers r are done in an excellent manner with the help of the product movement functionality of logistic, the e-commerce business is mostlydepending on this function for the maximization of their sales rate.

3. Logistic network	Feet size	Configuration
   FedEx Logistics	·         160 aircrafts	Transpiration logistics Configuration
   UPS Supply Chain Solutions	·         5,900 vehicles ·         22,000 trailers	Air Freight transportation

    

   Table 3: Fleeting size and configuration
   (Source: ttnews.com, 2020)

   The evaluation of the above table is helpful in the identification of the fact that the fleetsize and configuration of each of the logistic network different completely from each other. The fleet size of the logistic network depends on the area that is covered by them. It can be stated that the logistic network, like FedEx Logistics, has a huge fleet size. The movement of the Home needs and medical kits from one location to the other is done in an excellent manner with the help of the smart logistic services (Lei et al., 2017). The configuration style of the logistic network depends on the services that are executed by them. The logistic network like UPS Supply chain Solutions has limited fleet size depending on the areas it captures for the execution of their services.

   As per my preference, Iwould select the FedEx as it is having a loge fleet size as well as a good cover in the global market. The network has the ability to elevate the service efficiency and thus ensure profit to the associated companies.

4. Logistic network	Differentiation
   FedEx	Routing
   UPS Supply Chain Solutions	Scheduling

    

   Table 4: Differentiation on the basis of routing and scheduling
   (Source: ttnews.com, 2020)

   Routing of the logistic network is considered the essential criteria that need to be taken into consideration. The logistic network for example XPO Logistics, DHL Supply Chain and J.B. Hunt Transport Services is mainly based on the routing functionality. The routes that are selected by the networksare the main success criteria (Leong, 2016). It has been evaluatedthat the logistic networks such as FedExaremostlytake up the route used by the logistic network for placing their priority.However, the scheduling of the network is alsoessential for the execution of the logistic services without any kind of delay. The increment of the schedule ishelpful in the up-gradation of the market standard by the logistic network.

   I prefer to use the networksfocusing on the correctselection of routes. The route is vital as it ensures limited damagedand secure supply of goods (Liu et al., 2019). Thus, logistics network under the category of services of the basis of routing is my choice.

5. Logistic network	Hub and spoke model	Transportation mode
   FedEx	Memplis, Tesnnessee	Air, Water, Road
   UPS Supply Chain Solutions	Georgia	Air, Water, Road

    

   Table: Hun and spoke model of the logistic networks.
   (Source: ttnews.com, 2020)

   The Huband spoke model is based on the identification of the productioncentre of the logistic network. The identification of the production hub is helpful in the evaluation of the network in an excellent manner (Samuelsson, 2016). The headquarters of the logisticnetworksare identified as the core production hub of the top five global logisticnetworks. It has beenat the same time evaluated that in recent time all the three supply chainnetworksare taken into consideration by the companies. As each mode of transportation has its own pros and cons; thus, the selection of all the networksare made as per the required criteria.

   As per my view, I would like to use air transportation mode. It is fast. At the same time, it can be identified that the air craft’s cannot take the buck of goods at a time and is costly in natures. Thus it can be concluded that the selection of the transpiration modes needs to be as per the situations need.

6. FedEx is making the use of machine learning is done for smarter help to the shipper as well as the carriers contributing to the smooth capacity buy and sell. On the other hand, UPS Supply Chain Solutions uses cross dock line and ship training system is used to elevate the transportation efficiency of the logistic services. At the same time FedEx is implementing pilot programs are used along with plug and play strategies up the up-gradation of the supply transportation (Williams, 2017). UPS Supply Chain Solutions make use of intelligent road and transportation system is used. However, FedExtakes up new transport technologies are unshackled in this logistic business to provide satisfaction to the customers.

   The technological integration used by the network of UPS Supply Chain Solutionsis preferred by me. The use of smart technologies in elevating the services is helpful. It at the sametime reduced the cost increment and elevated the customerattraction power.

7. As per the selected logistic network, the challenges of cost are identified in the network of UPS Supply Chain Solutions. At the same time, the issue of poor management is identical in the networks such as FedEx (Zekic-Susac et al., 2016). It is therefore essential for the selected top global logistic networks to ensure that the issue is addressed properlyby team andstepsaretaken to rectify the issuesandthus ensure efficient execution of the services. It has been evaluated that the logistic business such as FedEx is having a wider level of logistic business thus the team is unable to coordinate with each other properly (Abdenebaoui and Kreowski, 2016). At the sametime the poor financial allocation is identical in the case of the UPS Supply Chain Solutions. It is therefore alsoidentified that the issues regarding the route selection is also identical in the transpiration of the goods by the logistic network of Fed Ex. It is at the sometime identical that the logisticnetworks need to be calculative in their transportation measures to reduce the level of combustion.

   I think the managementteam of the FedExisexcellent, and thus they will be able to easily identify the core issuesand take up rapid measures. The measures will ensure the selection of the correct management system and the transpiration can be executedwithout any kind of delay. The issues such as misunderstanding as well as conflicts lead todelay in transportation of the logisticnetworks.

Reference List
Abdenebaoui, L. And Kreowski, H., 2016. Modelling Of Decentralized Processes In Dynamic Logistic Networks By Means Of Graph-Transformational Swarms. Logistics Research, 9(1), Pp. 1-13.

Evtodieva, T.E., Davydova, N.N., Videneeva, S.V. And Fedorov, V.A., 2016. The Concept Of Network Organization And Design Of Networks In Logistics. International Journal Of Economic Perspectives, 10(3), Pp. 75-82.

Kovalska, L.L. And Rechun, O.Y., 2017. Designing The Logistic System For A Retail Trade Network In Ukraine's Regions. Logistics assignment Aktual'ni Problemy Ekonomiky = Actual Problems In Economics, (188), Pp. 113-119.

Lei, H., Li, Y., Xiao, S., Yang, X., Lin, C., Norris, S.L., Wei, D., Hu, Z. And Ji, S., 2017. Logistic Growth Of A Surface Contamination Network And Its Role In Disease Spread. Scientific Reports (Nature Publisher Group), 7, Pp. 1-10.

Leong, C.K., 2016. Credit Risk Scoring With Bayesian Network Models. Computational Economics, 47(3), Pp. 423-446.

Liu, D., Ma, Y., Jiang, X. And He, T., 2019. Predicting Virus-Host Association By Kernelized Logistic Matrix Factorization And Similarity Network Fusion. Bmc Bioinformatics, 20(Suppl 16), Pp. 1-10.

Samuelsson, B., 2016. Estimating Distribution Costs In A Supply Chain Network Optimisation Tool, A Case Study. Operational Research, 16(3), Pp. 469-499.

ttnews.com (2020)Top logistic networks Available at https://www.ttnews.com/top50/logistics/2019 [Accessed on 17.5.2020]

Williams, D.A., 2017. Modelling Business Failure Among SMEs: An Artificial Neural Networks And Logistic Regression Analysis. Journal Of Business And Entrepreneurship, 28(2), Pp. 1-27.

Zekic-Susac, M., Sarlija, N., Has, A. And Bilandzic, A., 2016. Predicting Company Growth Using Logistic Regression And Neural Networks. Croatian Operational Research Review, 7(2), Pp. 229-248.