Question

local storage of UPS company?

what is local storage of UPS company means? how do UPS manage their local storage? advantages and disadvantages. does local storage have further types??

UPS- united parcel service.

Answer 1

Solution:

United Parcel Service is a logistics company and thus the inventory and storage operations form the most basic and core operation of the business. Logistics businesses that operate in multiple regions or countries have various warehouses, distribution centers across the regions that serve as the local storage center for the designated area or region. Hence, the local storage of United Parcel Service means the local or main distribution center or warehouse that serves the region under consideration. Hence, for UPS the local storage would be the local distribution centers to the given region. Different locations would have different local storage locations.

Local storage is managed centrally by the company headquarters. This means the business operations information is passed on by the business headquarters to the local storage facility and then the local administration looks after the local operations that are required to be done. The headquarters is responsible for holistically looking over the business of the local storage facility and make necessary adjustments to match the desired performance levels. Thus, UPS managers their local storage facilities with central operations.

There are multiple advantages of local storage. It helps in reducing the delivery time for the parcel hence providing a superior quality service to the consumers. It also helps in implementing reverse logistics seamlessly because of local storage. The risk due to longer distances is reduced because of local storage and the cost implications are also reduced. With local storage, the cost of parcel service reduces significantly. The local storage also helps in diversifying the business operations and minimizing the risks to the business because of centralized operations. There are also disadvantages of this system, this involves the decentralized decision making in managing local storage facilities. The additional capital required in setting up the local storage facilities and managing them.

Hence, the local storage has strategic importance for logistics companies such as UPS which are explained above.