The Value ChainPrimary Activities

Inbound Logistics

• The Brown Truck• Drop Boxes• The UPS Store• Storage and Warehousing

Operating Activities

• Shipping• Package Routing• Scheduling– Flight– Ground– Operators

• Upkeep– Fueling– Maintenance

Outbound Logistics

• Package Delivery– In store pick up– Home delivery• Redelivery scheduling

Sales and Marketing

• Sales– Customer side phone operators– Corporate accounts– Customer retention programs

• Frequent user discounts

• Marketing– The UPS Truck– Advertising

• “That’s Logistics!”

– Promotional– The UPS Uniform

Service Activities

• Lost package service• Package insurance– Damaged package claims

• Customer support– Complaint investigation

Support Activities

Procurement

• No raw materials• Packages are the product

Technology Development

• Online package tracking system• Website• The signature computer– Links in to overarching customer systems

HR Management

• Training– Sales

• Customer service• Corporate account agency

– Driver• Flight• Boat• Land

– Package handling– Route

• Pick up• Drop off

Firm Activities

• Quality Control• Community– Charity

• Financial– Accounting

Value Added

• International shipping• Convenience– UPS Store– Home delivery

• Reliability– Continuous training activities

• Web tracking– Peace of mind– Certainty