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Unformatted text preview: 2-25-2008FedEx and UPS: Communication1.UPS historya.Established in 1907 – started with bicyclesb.Only competition for USPS – mostly worked with trucksc.When FedEx came in, UPS started using airplanesd.Emphasized quality and efficiency e.Used barcodes for accurate sortingf.During peak season the Management Executives would help outg.Highly unionized – causes wages and salaries to be high.2.How they are successfula.They used engineers to research how to move the mail the most quicklyb.Driver’s daily routine was calculated down to the minute.c.Drivers make 100-120 deliveries a dayd.Push decision making down to the lowest level. i.Decentralization – decision making is broken up into lower levelse.Execs don’t take large salaries because they have stock shares3.FedEx Historya.Came about from a Yale paper. In 1971 b.Idea was about how busy airports are at night.i.Wanted to use a central hub, hire lots of workers1.Built hub in Memphis (center of the country)4.FedEx vs. UPSa.FedEx has no Unions (except pilots)...
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- United Parcel Service, leap frogs FedEx