Increased operational efficiency and international expansion has resulted in significant profit gains for United Parcel Service (UPS) this year. As fleet management companies in other industries seek to take advantage of the upcoming holiday shopping season, as well as an increase in manufacturing activity, fleet managers can experience similar growth by investing in logistics software tools that maximize resources at limited overhead costs.
The organization reported especially large improvements in its supply chain and freight operations during Q3 2013. For example, operating profit increased 7 percent to a total of $201 million. Similarly, UPS Freight, a division of the company that specializes in smaller deliveries, reported a 5.5 percent increase in revenue due to larger overall tonnage. A recent focus on expanding service in Mexico has also contributed to revenue growth, as the company is able to limit the distance between manufacturers and consumers.
Kurt Kuehn, chief financial officer at UPS, said the growth aligns closely with projections made earlier in the year. In fact, the organization expects profits to continue increasing through the holiday season, as online shopping increases the demand for rapid international and domestic deliveries.
"Third quarter results were strong and in line with our expectations," Kuehn stated. "Looking to the fourth quarter, although some major retailers have expressed caution about holiday spending, they still expect robust online sales."
Known for reliable deliveries
In addition to its expansion in the supply chain and freight divisions, UPS also continues to maintain a strong reputation for operational efficiency and safety. An article published in theDetroit Free Press said UPS driver Tom Camp recently accomplished a unique feat within the company, logging more than 800,000 miles over 51 years without once getting in a traffic accident. The article said Camp is so reliable that managers at local businesses can often predict exactly when packages are going to arrive.
How can fleet managers improve the reputations of their own operations?
Tools such as truck dispatch software are often effective in making the most efficient use of available resources in the transportation industry. At any given moment, managers must often make important decisions about which deliveries to place in which truck. However, the use of automated software makes it easier to view as many factors as possible when making operational decisions.