A Game of Inches
To sustain growth, UPS executives are looking for new efficiencies. For example. the: are seeking to make work standards for truck mechanics more exact. And at UPS’s Parsippany, New Jersey, package sorting hub, I of more than 100 that the company operates. officials are making the most of space by parking delivery trucks just five inch-s apart. But productivity has its price. New York City says that UPS have received more than million in unpaid parking tickets since March 1985 while making deliveries. A company attorney says the amount is “much too high UPS has contested The fine.. The new competition from Roadway Package System looms
The new competition from Roadway Package System looms large. Roadway 1<, cutting labor expenses 20 percent to 30 percent by u ing independent drivers. Because Roadway drivers buy their own trucks, uniforms. and insurance. Roadway is saying moon, that it is using to automate package sorting. “We’ll use technology to be the low-cost producer says Bram Johnson. a Roadway vice president.
Roadway says it reduced personnel 25 percent at its five sorting hubs through automation. At its York, Penn ylvarria, hub, for example, a moving belt of tilt trays following instructions from a computer drops packages down a series of chutes.
2. What are the advantages and disadvantages of the UPS approach?
3. What would you do differently? Why?