In an exclusive interview, Brian Sozzi sat down with UPS Chief Financial Officer Kurt Kuehn to find out how the company is addressing new societal demands. From increasing the number of green vehicles on the road to investing in capacity to handle more online orders during the holidays, UPS has a multitude of interesting initiatives on the table.
UPS FACED a crisis in the late 1940s and early 1950s. The company’s traditional business model was increasingly out-of-sync with the rapidly changing retail business market. The crisis was so severe that the very future of the company was at stake. Yet not only did UPS survive the crisis–it dramatically shifted its business strategy and, during the following two decades, emerged as one of the rising giants of the shipping industry.
What was the source of the crisis, and how did UPS survive it?
UPS founder and still-serving CEO Jim Casey saw the potential for different type of business market that the company could gobble up: “The vast field of distribution for wholesalers and manufacturers appears to be wide open for us.”
UPS MADE an early leap into New York City’s retail delivery business.
With its dominance established on the West Coast, in 1930, it set up its delivery operations in Manhattan and aspired to become the premiere delivery service for all of New York’s leading and popular department stores and specialty shops. By the end of the decade, it had largely succeeded–it was the delivery service for over 350 of the city’s leading retail businesses. It continued to expand during the war years, and one year after the end of the Second World War, UPS got the jewel in the crown of New York’s retail trade–Macy’s, the city’s oldest and most venerated department store.
This seemingly innocuous takeover of Macy’s delivery service, however, set off a chain reaction of events that shut down UPS for 51 days in the fall of 1946 and overturned the leadership of the local Teamsters union.
United Parcel Service Inc plans to invest $1 billion in its European operations in the next three to five years, mostly in expansion of its logistics centres, Chief Financial Officer Kurt Kuehn told a German newspaper.
He said the new strategy UPS is due to unveil in November includes acquisitions, particularly in the healthcare sector where he said transportation of medicines has been a logistical challenge because they are sensitive to changes in temperature.
Delaware State Police investigators say the driver of a UPS tractor trailer had fallen asleep at the wheel prior to crashing on I-95 in Newport Friday morning.
Preliminary investigation indicates that 45-year-old Phillip Bates of York, Pennsylvania was traveling from I-295 southbound, merging onto I-95 southbound, when the tractor-trailer traveled off of the roadway and onto the right shoulder of the I-295 merge.
Bates was issued a traffic citation for Inattentive Driving. Delaware State Police are continuing their investigation into the circumstances surrounding the crash.