UPS is now leveraging its decades of expertise
managing its own global delivery network to manage
logistics and supply chain activities for other companies.
It created a UPS Supply Chain Solutions
division that provides a complete bundle of standardized
services to subscribing companies at a fraction
of what it would cost to build their own systems and
infrastructure. These services include supply chain
design and management, freight forwarding, customs
brokerage, mail services, multimodal transportation,
and financial services, in addition to logistics
services.
Servalite, an East Moline, Illinois, manufacturer of
fasteners, sells 40,000 different products to hardware stores and larger home improvement stores.
The company had used multiple warehouses to
provide two-day delivery nationwide. UPS created a
new logistics plan for the company that helped it
reduce freight time in transit and consolidate inventory.
Thanks to these improvements, Servalite has
been able to keep its two-day delivery guarantee
while lowering warehousing and inventory costs.