Study On UPS Package Delivery

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UPS gives their best to ensure the trust and confidence of the customers through focused customer orientation, quality of service and state-of the art technology, transparency in dealing and adopting the best practices of Corporate Governance, achieving excellence in all the endeavors to create value. The significant challenge posed before them is the maintenance of the quality of business simultaneously with its information and business consolidation processes.

Basically, this report is highlighted on HRM activities, regulations practiced by UPS China Zhongshan branch, Company structuring terms of Chinese Labor law regulations, Performance of UPS, Own Experience, Recommendation and conclusion.

1.2 Origin of the Report

The report entitled “Activities of HR in UPS” has been prepared as a partial fulfillment of BBA program authorized by the department of business administration, United International University.

UPS is a well known package delivery company. Now a days in this era of globalization the process of communication & transportation has developed a lot. UPS working as the world’s largest packages Delivery Company and a leading global provider of specialized transportation and logistics services. It continues to develop the frontiers of logistics, supply chain management, and e-commerce combining with the flows of goods, information, and funds. Further due to the exposure of global trends after information explosion led by internet, customers are now demanding better services.

It has become essential for every person to have some idea on practical procedures. As our educational system is predominantly text based, inclusion of practical orientation program is an exception to the norm. From the practical knowledge will be able to know about working life situation and it help to start our career with some practical experience. This internship report is an attempt to study about the HRM practices thereof in United Parcel Service (UPS).

Scope of Study

This internship program gives me a great scope or opportunity for gather experience and knowledge in several areas of HRM related with practical experience by which can evaluate or expose able to know about the organizational structure and policy of UPS concerning Human Resource Development. During the first few week of internship period, was able to communicate with the employees. And gradually was able to accustom and adapted myself with the working environment of UPS. An infrastructure of the organization has been detailed, accompanied by a global perspective and look into the future. The range of this report is limited to the overall description of the company, its services, and its position in the industry and its running strategies of personnel’s. The scope of the study is limited to organizational setup, functions, and performances. While preparing this report,  had a great opportunity to have an in depth knowledge of all the activities and practices by “United Parcel Service”. It also helps me to acquire perspective of the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services.

Objective of the report

Broad objectives

To fulfill the requirement of our BBA program, my main objectives to understand the Human resource Management policy and system of UPS and its effect on overall organizational performance.

Specific objectives

· To know the organizational framework of UPS.

· To know the work environment and organizational behaviors.

· To get through all the departments and observe the actual work done.

· Find out the procedure used in UPS for recruitment and selection.

· Purpose of training for existing and newly selected employees.

· Internal and external training program.

· Strength and weakness of the company.

· To recommend necessary steps to overcome such situation.

· The dimension of internal performance management system.

· Make some recommendations which could helpful and more effective for UPS.

· Related the theoretical knowledge of HR with practices of UPS.


In collecting the necessary data, a special care has been taken so that all the variables may not affect the objectives of the study. Data needed for conducting the study have been collected from the following sources.

Primary data sources

· Practical work experience.

· Observation while working.

· Personal discussion with the officers and executives.

· Personal interview with the customers.

Secondary data sources

· Organizational formal reports, publications, training materials

· Periodical statements, booklets etc.

· Office circulars etc.

· From Company websites.

Different reference books

Study of related books, seminar paper, training papers, Text book of Human Resource Management by Gary Dessler.

Limitation of the Study

· Lack of sufficient time of the HR personnel’s.

· Lack of sufficient accessible books and journals about HR practices in the organization.

· As the internship paper is prepared alone by the intern him/herself, so I did not get the team advantages.

· For the first time, it was difficult for me to manage the office work and prepared the internship report works.

· It should be certainly mentioned that time constraint as limitation of the study. For gathering perfect knowledge on the vast area of corporate activities of the company.

· In some cases, they could not be able to supply my topic related data for preparing a more in depth research study.

· It takes times to adjust with the process of the office works because for me it was first working experience with a new Country and Culture which is quite different from us. But gradually I tried to cope up with the organizational environment.

Gantt chart

Activities Duration of weeks
1 week 2 weeks 3 weeks 4 weeks 5 weeks
Work as Intern
Synchronized HRM related data
Made an outline of the overall report
Worked with the Company profile part
analysis part of the report
Work with the ending summary part
Synchronizing all the information’s of the entire report
Edited the whole report before submission

Theoretical aspects of HRM

Human Resource Management (HRM, HR) is the management of an organization’s employees. While human resource management is sometimes referred to as a “soft” management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of organizational goals. Effective human resource management also contains an element of risk management for an organization which, as a minimum, ensures legislative compliance.

Functions of HRM

The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding the staffing needs of an organization and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies.

In order to achieve the above objectives, Human Resource Management undertakes the following activities:

· Human resource or manpower planning.

· Recruitment, selection and placement of personnel.

· Training and development of employees.

· Appraisal of performance of employees.

· Taking corrective steps such as transfer from one job to another.

· Social security and welfare of employees.

· Setting general and specific management policy for organizational relationship.

· Collective bargaining, contract negotiation and grievance handling.

· Staffing the organization.

· Development of employees at all levels.

· Developing and maintaining motivation for workers by providing incentives.

· Reviewing and auditing manpower management in the organization.

· Potential Appraisal. Feedback Counseling.

· Job Rotation.

· Quality Circle, Organization development and Quality of Working Life.

Human Resource Management: Major Influencing Factors

HRM is influenced by following factors, which work as various issues affecting its strategy:

• Size of the workforce.

• Rising employees’ expectations

• Drastic changes in the technology as well as Life-style changes.

• Composition of workforce. New skills required.

• Environmental challenges.

• Impact of new economic policy. Political ideology of the Government.

• Downsizing of the organizations.

• Culture prevailing in the organization etc.

Human Resource Department is important because it helps the organization to –

· Keep People Commitment

· Improved Employee Performance and Learning Capacity

· Improved Organizational Effectiveness

· Improved Communication and Involvement

“Company Profile”

About United Parcel Service (UPS)

Corporate Profile

United Parcel Service, Inc. typically referred to by the acronym UPS, is a package delivery company. UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions. Headquartered in Sandy Springs, Georgia, United States, UPS delivers more than 15 million packages a day to 6.1 million customers in more than 220 countries and territories around the world.

UPS is well known for its brown trucks, internally known as package cars (hence the companies nickname “The Big Brown Machine”). UPS also operates its own airline based in Louisville, Kentucky.

Although their primary business is the time-definite delivery of packages and documents, they have extended their capabilities in recent years to encompass the broader spectrum of services known as supply chain solutions, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction and even repairs. UPS is also a leading provider of less-than-truckload transportation services.

UPS is one of the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. Every day, they manage the flow of goods, funds, and information in more than 220 countries and territories worldwide.

UPS Express Centers are staffed retail shipping outlets equipped to help with any air or ground UPS document or package shipment. Conveniently located in major metropolitan areas, these centers provide easy access to UPS domestic and international shipping services.

United Parcel Service, Inc.
Type Public company
Industry Courier
Founded Seattle, Washington (1907)
Headquarters Sandy Springs, Georgia (U.S. state)
Key people Scott Davis (Chairman & CEO)
Products Courier express services

Freight forwarding services

Logistics services

Revenue US$ 49.545 billion (2010)
Operating income US$ 5.874 billion (2010)
Net income US$ 3.488 billion (2010)
Total assets US$ 33.597 billion (2010)
Total equity US$ 8.047 billion (2010)
Employees 400,600 (December 2010)
Subsidiaries The UPS Store

UPS Supply Chain Solutions

UPS Capital

UPS Airlines

UPS Express Critical

UPS Freight

UPS Logistics

UPS Mail Innovations

UPS Professional Solutions


Company History

Founded in 1907 as a messenger company in the United States, UPS has grown into a multi-billion-dollar corporation by clearly focusing on the goal of enabling commerce around the globe. Today UPS, or United Parcel Service Inc., is a global company with one of the most recognized and admired brands in the world. As the largest express carrier and package delivery company in the world, they are also a leading provider of specialized transportation, logistics, capital, and e-commerce services.

Every day they manage the flow of goods, funds and information in more than 200 countries and territories worldwide. UPS working as the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services. UPS continues to develop the frontiers of logistics, supply chain management, and e-commerce combining with the flows of goods, information, and funds.

Brand mark


United Parcel Service logo (1919–1937)


United Parcel Service logo (1937–1961)


United Parcel Service logo (1961–2003)


United Parcel Service logo (2003–present)

In April 2003, UPS unveiled a new logo, the fourth the company has used, replacing the iconic package and shield originally designed in 1961 by Paul Rand. The original logo first saw use in 1919 when the company was American Messenger Company. In 1937, the logo was redesigned to reflect the company’s new name United Parcel Service. All four designs for the logo shared the shield theme, and UPS employees often refer to the brand mark as “the shield.”

Brown Color of UPS

The brown color that UPS uses on its vehicles and uniforms is called Pullman Brown. The color is also mentioned in their former advertising slogan: “What can Brown do for you?” .Originally founder James E. Casey wanted the trucks to be yellow, but one of his partners, Charlie Soderstrom stated they would be impossible to keep clean, and that Pullman railroad cars were brown for just that reason.


UPS commissioned brand consultancy Future Brand to develop their own font, UPS Sans, for use in marketing and communication material. UPS Sans was created by slightly altering certain parts of FSI Font Shop International’s font FF Dax without permission. This has resulted in an agreement between FSI Font Shop International and Future Brand to avoid litigation.

2.4 Vehicles

Package cars

UPS package car from rear quarter. US variant, Corpus Christi, Texas

Mercedes Sprinter-based package car in London. The van carries the logo of the London 2012 Olympics, to show that UPS is a sponsor of the games

A UPS trailer parked in Durham, North Carolina

UPS Package cars

The UPS package car (or van) is a major symbol of the U.S. business world, with its iconic status referenced in an early-2000s ad campaign following UPS’ sponsorship. The ads were about how the company would prefer to race the truck over a stock car despite the futility of doing so, as “people love the truck”.

The classic UPS package car is built on a General Motors or Ford chassis, has a manual transmission, manual steering, and no radio or air conditioning. The older ones are easily recognizable due to their round headlights and turn signals set onto a sculpted fiberglass hood.

Newer package cars in North America have either a Freightliner Trucks or International chassis; automatic transmissions and power steering are slowly appearing in package cars. UPS also operates Mercedes-Benz Sprinter box vans (occasionally with Dodge badges) as well as Dodge minivans.

UPS has ordered Modec electric vans for its UK and German fleets. Energy costs play a huge part in the potential profitability of package delivery companies like UPS, DHL and FedEx.

When UPS ground vehicles reach the end of their useful service life and are no longer roadworthy (typically 20–25 years or more, but generally when the body’s structural integrity is compromised), they are almost always stripped of reusable parts, repainted in household paint to cover up the trademark, and then sent to the scrap yard to be crushed and broken up. The only exception to this policy is when a package car is repainted white for internal use, usually at a large hub. Prior to scrapping, UPS trucks and trailers are assigned an ADA (Automotive Destruction Authorization) number and must be crushed under supervision of UPS Automotive personnel, which records the vehicle’s destruction, as UPS does not re-sell any of its ground vehicles.

When using non-proprietary vehicles such as Ford E-Series vans, Dodge Caravans, or Mercedes-Benz Sprinters, UPS will often remove the vehicle badging as to not provide free advertising to the manufacturer.

UPS Other trucks

UPS commonly refers to its tractor-trailers as “feeders”. The tractors are painted the same Pullman brown as the package cars, while all company-owned trailers are painted gray. UPS trailers come in a variety of lengths. The shortest trailers (also known as “pups”) are 28 feet (8.5 m) long; longer trailers come in lengths of 45, 48 or 53 feet (16 m). Towing two of the short trailers in tandem are referred to as “double pups.” There are three different types of feeders — Flatbed, Drop Frame, and Trailer-on-flatcar (TOFC); the latter are put onto railroad cars.

Tractors are usually made by International or Mack, but a few Ford, Sterling, and Freightliner tractors are in the fleet. Past makes in the fleet include Chevrolet, GMC, and Diamond REO. In keeping with “no free advertising”, the same is done with the “feeder” trucks as with the package cars; all make and model badges are removed from the vehicle. At one time, UPS used electric-powered trucks, made by White Motors, for deliveries in Manhattan, NYC. There were only a few hundred of them, but they were notable for their “spooky silence” when running.


In 2008, UPS started hiring bike delivery people in Vancouver, Washington; Portland, Salem, Corvallis, Antelope, Eugene, and Medford, Oregon.


UPS contracts with several railroad companies in the United States to provide intermodal transport for their cargo.

Larger UPS package vehicles custom made by Grumman Olson

Smaller UPS package vehicles on a Mercedes chassis

A Boeing 747 in the original UPS Airlines colour scheme in 1998

A UPS Airlines McDonnell Douglas MD-11F aircraft just after takeoff in 2007

Fuel Economy

UPS Package Car.

In 2004 UPS announced that they would save fuel by minimizing left turns. Because drivers are idle at intersections while waiting to make left turns, UPS developed software that routes the day’s packages with preference to right turns. Since UPS operates a fleet of over 100,000 ground vehicles, the fuel savings are considerable. In 2005, UPS eliminated 464,000 miles (747,000 km) from its travel and saved 51,000 US gallons (190,000 l) of fuel.

UPS is also utilizing hybrid electric vehicles (HEV) for local deliveries only. As of May 22, 2007, the company has 50 deployed in Atlanta, Dallas, Houston, and Phoenix. The 50 HEVs are expected to cut fuel consumption by 44,000 US gallons (170,000 l) per year.

Environmental Record

UPS has 94,600 vehicles in operation. In May 2008 UPS placed an order for 200 hybrid electric vehicles (adding to the 50 it has currently) and 300 compressed natural gas (which are 20% more fuel efficient, and add to the 800 it already has) vehicles with from Daimler Trucks North America.

UPS received a “striding” rating of 76 points out of 100 totals on the environmental scorecard by the Climate Counts Group for their efforts to lessen the company’s impact on the environment.UPS has also been awarded the Clean Air Excellence Award by the United States Environmental Protection Agency because of the alternative fuel program they have developed.

In October, 2009, UPS became the first small package carrier to offer customers the chance to buy carbon offsets to neutralize the greenhouse gas emissions generated by the transport of their packages. Although initially only available on and to high-volume shippers, they are now widely available through UPS shipping systems and UPS Ready third party shipping systems.

2.5 Company Structure

United Parcel Service, Inc. (UPS) as a package delivery company, they provides transportation, logistics, and financial services in the United States and internationally. The Company delivers packages each business day for 1.1 million shipping customers to 7.4 million consignees in over 220 countries and territories. During the year ended December 31 2010, UPS delivered an average of 15.6 million pieces per day worldwide, or a total of 3.94 billion packages. Its primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended their service portfolio to include less than truckload transportation (primarily in the U.S.) and supply chain services. UPS reports their operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.

The Company operates in three segments:

1. U.S. Domestic Package operations,

1. International Package operations,

2. and Supply Chain & Freight operations.

U.S. Domestic Package

U.S. Domestic Package operations include the time-definite delivery of letters, documents, and packages throughout the United States. UPS operates a ground fleet of approximately 99,800 vehicles, which reaches all business and residential zip codes in the United States. It also operates an air fleet of 527 aircraft. The Company’s primary air hub is in Louisville, Kentucky. Regional air hubs are located in Hartford, Connecticut; Ontario, California; Philadelphia, Pennsylvania, and Rockford, Illinois.

The Company’s global small package portfolio consists of a spectrum of export and domestic services. Export services are those provided for packages crossing a country’s borders, while domestic services are for packages that stay within the borders of a single country. It provides domestic express services in 55 countries outside the United States. This portfolio includes delivery options to cities worldwide. UPS handles packages that weigh up-to 150 pounds and are up-to 165 inches in combined length and girth. It offers same-day pickup of air and ground packages. UPS also offers worldwide customs clearance service for any mode of transportation. During 2010, UPS introduced UPS Smart Pickup.

International Package

Its international air hub is in Cologne, Germany, with other regional international hubs in Miami, Florida; Canada; Hong Kong; Singapore; Taiwan, and China. It operates a global transportation infrastructure and offers a portfolio of services. UPS supports these services with operational and customer-facing technology. UPS offers a variety of technology solutions for automated shipping, visibility and billing.

International Package operations includes delivery of letters, documents and packages to more than 220 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments from or to the United States with another country as the destination or origin point. The International Package segment provides air and ground delivery of small packages and letters to more than 220 countries and territories worldwide. Its export provides services to cross country boundaries, and domestic services move shipments within a country’s borders. In Europe UPS provides both express and domestic service. Through more than two dozen alliances with Asian delivery companies, it serves more than 40 Asia-Pacific countries and territories. It is also an air cargo carrier in Latin America and the Caribbean. During 2010, the Company established alliance partners in Vietnam, Malaysia and Indonesia.

Supply Chain & Freight

The Company’s supply chain services include freight forwarding, logistics and distribution, customs brokerage, industry-specific solutions and UPS capital. UPS Freight also provides its customers with truckload and truckload transportation solutions. UPS provides its customers with easy access to UPS, with over 150,000 domestic and international access points, including 40,000 branded drop-boxes; 1,000 UPS customer centers; 4,700 independently owned and operated The UPS Store and Mail Boxes Etc. locations worldwide; 16,000 authorized shipping outlets and commercial counters, and 88,400 UPS drivers who can accept packages given to them.

Supply Chain & Freight consists of its forwarding and logistics operations, UPS Freight, and other related businesses. The Company’s forwarding and logistics business provides services in more than 195 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. The Supply Chain & Freight segment consists of its forwarding and logistics capabilities, as well as its UPS Freight business unit.

The Company focuses on supply chain optimization, freight forwarding, international trade and brokerage services for its customers worldwide, which include a range of transportation solutions, including air, ocean and ground freight. UPS provides information technology systems and distribution facilities for industries, such as healthcare, technology and consumer/retail. It offers a portfolio of financial services that provides customers with short-term working capital, Government guaranteed lending, global trade financing, credit cards and export financing. UPS Freight provides services through a network of owned and leased service centers and carrier partnerships.


UPS is one of the largest package delivery company in the world, in terms of both revenue and volume. UPS is offering a broad array of services in the package delivery industry and, therefore, compete with many different local, regional, national and international companies.

Major domestic (United States) competitors include United States Postal Service (USPS) and FedEx. In addition to these domestic carriers, UPS competes with a variety of international operators, including Canada Post, FCML WORLDWIDE, DHL Express, Deutsche Post (and its subsidiary DHL), TNT Express, Royal Mail, Japan Post, India Post and many other regional carriers, national postal services and air cargo handlers.

Competitive Strengths

UPS believe that their integrated global ground and air network is the most extensive in the industry. It is the only network that handles all levels of service (express, ground, domestic, international, commercial, residential) through one integrated pickup and delivery service system.

Technology: They are a global leader in developing technology that improves their customers’ business processes.

Broad, Flexible Range of Services and Integrated Solutions:Their portfolio of services enables customers to choose the delivery option that is most appropriate for their requirements.

Customer Relationships: They focus on building and maintaining long-term customer relationships by treating each customer as if they were our only customer.

Brand Equity: They have built a leading and trusted brand in our industry – a brand that stands for quality service, reliability and product innovation.

Distinctive Culture: They believe that the dedication of their employees results in large part from their distinctive “employee-owner” concept. The employee stock ownership tradition dates from 1927, when the founders, who believed that employee stock ownership was a vital foundation for successful business, first offered stock to employees. To facilitate employee stock ownership, they maintain several stock-based compensation programs.

Financial Strength: Their balance sheet reflects financial strength that few companies can match.

Growth Strategy

Our growth strategy takes advantage of our competitive strengths while maintaining our focus on meeting or exceeding our customers’ requirements. The principal components of our strategy are:

· Build on our leadership position in our U.S. business

· Continue international expansion

· Provide comprehensive supply chain solutions

· Leverage our leading-edge technology

· Pursue strategic acquisitions and global alliances.

2.8 United Parcel Service (UPS) Slogan:

A slogan is a short, memorable catch phrase, tagline or motto used to identify a product or company in advertisements.

As a top company in the Mail, Package and Freight Delivery industry United Parcel Service (UPS) specialize in Courier Express Services, Freight Forwarding Services and Logistics Services. The advertising slogan or business slogan most associated with United Parcel Service (UPS):

“Synchronizing the world of commerce”

“We run the tightest ship in the shipping business.”

2.9 United Parcel Service (UPS) Mission Statement:

A Mission Statement can be defined as a sentence or short paragraph written by a company or business which reflects its core purpose, identity, values and principle business aims.

“As the world’s largest package delivery company and a leading global provider of specialized transportation and logistics services, UPS continues to develop the frontiers of logistics, supply chain management, and e-Commerce … combining the flows of goods, information, and funds.”

2.10 Vision Statement:

Vision Statement is a sentence or short paragraph providing a broad, aspirational image of the future.

Our goal is to synchronize the world of commerce by developing business solutions that create value and competitive advantages for our customers.

2.11 Business Summary

The company was founded in 1907 and is headquartered in Atlanta, Georgia. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft.

UPS actively promotes employees from within, and because of UPS’s commitment to continuing education and training, the Part-time Package Handler position can be the gateway to many potential career paths within United Parcel Service. Long-standing company policies, such as employee ownership, equal opportunity, and promotion from within, have helped to foster employee dedication, making UPS a preferred employer.

Most employees begin their career at UPS as Part-time Package Handlers in the Package Operations division. While others join UPS Package Operations as Seasonal Driver Helpers, Package Delivery Drivers, Tractor-trailer Drivers, and Fleet Mechanics.

UPS employs approximately 425,300 staff, with 358,400 in the U.S. and 67,300 internationally. Approximately 240,000 UPS drivers, package handlers and clerks. The company has had only one nationwide strike in its history, which occurred in 1997, lasting 16 days.

2.12 UPS Fact Sheet (World Wide)

The facts and figures about the world’s largest package delivery company and one of the leading global providers of specialized transportation and logistics service UPS.

Founded in Seattle, Wash. August 28, 1907
Headquarters Atlanta, Ga.
Worldwide web address
Chairman and CEO Scott Davis
2010 revenue $49.6 billion
Employees 398,300 (324,000 U.S.; 74,300 International)


2010 revenue $40.9 billion
2010 delivery volume 3.94 billion packages and documents
Daily delivery volume 15.6 million packages and documents
Daily U.S. air volume 2.2 million packages and documents
Daily international volume 2.3 million packages and documents
Service area More than 220 countries and territories; Every address in North America and Europe
Customers 8.5 million daily (1.1 million pick-up, 7.4 million delivery)
Online tracking Average 26.2 million daily tracking requests
Retail access The UPS Store, 4,660; Mail Boxes Etc. 34; UPS Customer Centers, 1,000; Authorized outlets, 16,000; UPS Drop Boxes, 40,000
Operating facilities 1,801
Delivery fleet 93,736 package cars, vans, tractors, motorcycles, including 2,596 alternative-fuel vehicles
UPS jet aircraft 223 in service (225 aircraft total)
Chartered aircraft 292
Daily flight segments Domestic – 942; International – 815
Airports served Domestic – 379; International – 327
Air hubs
United States Louisville, Ky. (main Global Air Hub); Philadelphia, Pa.; Dallas, Texas; Ontario, Calif., Rockford, Ill.; Columbia, S.C.
Europe Cologne/Bonn, Germany
Asia Pacific Shanghai; Shenzhen; Hong Kong
Latin America and Caribbean Miami, Fla., USA
Canada Hamilton, Ontario


2010 net revenue $8.7 billion
UPS Supply Chain Solutions
Key services Logistics and distribution; transportation and freight (air, sea, ground, rail); freight forwarding to 195 countries; international trade management and customs brokerage.
Specialty services Service parts logistics; technical repair and configuration; supply chain design and planning; returns management.
Facilities 823 facilities in more than 120 countries; 32.7 million sq. ft.
UPS Freight
Key services Leading provider of less-than-truckload and truckload services coast-to-coast
Delivery fleet 6,410 tractors; 21,052 trailers
Facilities 196 service centers

2.13 UPS China Profile:

UPS now has 33 large, wholly owned branch offices that serve more than 200 cities in China. The offices are staffed by UPS’s own employees, such as service providers and salespeople, and use the company’s own technology. In China, the company has 500 salespeople.

As a professional transportation, logistics, capital and e-commerce service provider, UPS China, has a dedicated, highly qualified, responsible team, UPS China always stressed that “efficiency and superior team spirit,” all departments ring connected, and their roles, the formation of market development, one-to-door service, the network track shipments, customer care professional workflow we always adhere to customer-focused and improve customer-centric business organizations, to strengthen the reliability processes of “customer first” basic idea throughout the company’s delivery operations. UPS China follows the customer’s need for highly flexible customization of the program, all customer satisfaction as the goal to provide customers with the highest quality, efficient service. Company software and hardware facilities, flexible mode of operation, reasonable prices, good service, to ensure safe, efficient and accurate.

UPS treat each individual employee fairly, and recruit, select, train, promote, and compensate based on merit, experience, and other work-related criteria. They comply with all laws governing fair employment and labor practices. They do not discriminate against any applicant for employment or any employee in any aspect of their employment at UPS because of age, race, religion, sex, disability, sexual orientation, gender identity, military status, pregnancy, national origin, or veteran status.

Freedom from wrongful discrimination includes freedom from any form of discriminatory harassment. Prohibited harassment includes conduct that is intended to interfere or that has the effect of unreasonably interfering with a fellow employee’s work performance or creating an environment that is intimidating, hostile, or offensive to the individual

2.14 UPS China History

Air China Sinotrans Beijing Company was founded in 1981, under the Ministry of Foreign Trade and Economic Cooperation of China National Foreign Trade Transportation Corporation, is specialized in international freight and courier services, state-owned enterprises, is the establishment of qualified longer, large-scale air freight forwarding business. Joint venture for a period of 20 years. The company’s business scope ws mainly engaged in international import and export air freight courier services and international import and export business. The company aims was to “re-service, observe the credibility, efficiency”, quality services, advanced management techniques to improve domestic and international network for China’s foreign trade and economic development services for foreign customers and owner services for international economic cooperation and friendly exchanges services. UPS has the advantage of: advanced computer networking and fast free inquiry: whether it is documents, contracts, samples, objects such as credit account, the customer can at any time by phone or whereabouts of the INTERNET network for object query, even if special circumstances to be delayed, will immediately find out the reason for delay and delay site and check out who and when to receive the parcel; freight: the sender with the approval of consent of the recipient, by United Parcel hand the object to the recipient on the delivery of transport costs by the recipient; UPS: UPS is 70% of the business package, aircraft carrying capacity, generally can package weight is 70 kg; fair price: the current price of business in China to take the market price of the high , not high nor low, but for the development of the market, for customers, but will give top priority to quality of service; use in Beijing and Shanghai Customs EDI system, all the computer data network, speed up the clearance rate and improve efficiency.

United Parcel October 3, 1988 to enter the Asia Pacific market. In just a decade, UPS Asia Pacific region set in the air express market share as high as 15-20% of success, and the annual growth rate of more than fifty percent. In October 1988, United Parcel officially entered China through its China business agent Sinotrans Group (SINOTRANS) 67 cities in China into a postal network.

November 1993, UPS launched a letter and documents to strengthen the international courier business, thus accelerating the 64 cities around the world, the delivery speed.

In May 1994, UPS in China’s three major cities: Beijing, Guangzhou and Shanghai to open an office. December 22, UPS, Sinotrans Group and Shanghai Customs has signed test user agreement, the implementation of the air courier imports of e-mail EDI data exchange system (ELECTRONICDATAINTERCHANGE).

April 3, 1995, United Parcel Service has with Sinotrans Group and Sinotrans Group Shanghai Company signed a memorandum of understanding and letters of intent, preparation in Beijing, Guangzhou and Shanghai joint venture.

May 22, 1996, UPS and Sinotrans joint venture with Sinotrans Beijing Air North Air – UPS International Express Limited.

UPS has expanded its business in China to 106 cities. By 2000, UPS’s business will be expanded to 118 cities in China. Frozen Items International Express: Our international courier to provide frozen goods, fresh vegetables, potatoes, carrots, corn, frozen fish, frozen meat and so on. Also, the needs of dynamic transport experiments supplies, samples and so on.

UPS in China In early 2005, UPS became the first international express operations in China have the right to operate an international courier company. The end of 2005, our business quickly expanded to the country’s 23 major commercial cities, more than 200 cities across the country.

UPS China Fact Sheet

CHINA HEADQUARTERS 23F/33F, No. 166 Lujiazui East Road, Pudong District, Shanghai 200120, China











Steven Wong

45 locations covering more than 330 cities

5,000 in China; 408,000 Worldwide

851 package vans, trailers, trucks

92 (admin offices, distribution centers, field stocking locations, package centers, hubs, terminals and warehouses)

Beijing Capital International Airport, Shanghai Pudong International Airport, Guangzhou Baiyun International Airport, Qingdao Liuting International Airport, Shenzhen Baoan International Airport, and Xiamen Gaoqi International Airport

198 weekly flights connecting China to the U.S., Europe and across Asia

16 – Beijing, Tianjin, Dalian, Qingdao, Shenyang, Xi’an, Chengdu, Shanghai, Kunshan, Nanjing, Hangzhou, Ningbo, Shenzhen, Guangzhou, Xiamen and Fuzhou

17 – Beijing, Tianjin, Dalian, Qingdao, Shenyang, Xi’an, Chengdu, Shanghai, Kunshan, Nanjing, Hangzhou, Ningbo, Shenzhen, Guangzhou, Xiamen, Fuzhou and Dongguan

Transportation and freight services (air, ocean, ground), UPS Trade Direct®, UPS ExpressFreight, UPS Air Freight Direct, UPS Air Freight Consolidated, freight forwarding, international trade services (customs services, supplier management), logistics and distribution services, and post sales support.

UPS Internet Shipping, UPS CampusShip®, UPS WorldShip®, UPS Online® Tools, Quantum View®, Quantum View Notify®, FlexSM Global View, UPS Billing Data and Billing Analysis Tool, UPS TradeAbility®, UPS Wireless, UPS Signature Tracking®

UPS Organizational Chart:

UPS Internal Departments:

Southern Business Development O-chart Southern1

Southern Business Development O-chart Southern2

(c)Southern BD O-chart Southern Sales Support Group

(d) Southern BD O-chart Southern E-CAM & CTSS Group

(e)Southern BD O-chart Southern Sales Training Group

2.19 Legal Factors:

Legal factors define the legal and regulatory parameters within which firms must operate.

Chinese employment system is based on Asian socialist and Northern European models. The Chinese system is a contract employment system .This means all

employees must be engaged pursuant to a written employment contract and during the term of that contract, it is very difficult to terminate an employee. An employee can only be terminated for cause and cause must be clearly proved. This means the employer must maintain a detailed set of rules and regulations and must maintain careful discipline records to be able to establish grounds for dismissal. This whole situation makes the employment relationship and the employment documents much more adversarial.

China does not really have the concept of a “salaried” employee. The Chinese work week is 40 hours and overtime must be paid for work exceeding the 40 hour limit.

Employment Law:

1. According to Chinese labour law, the standard working time is 40 hours per week. In theory, the standard work week in China runs from Monday to Friday from 9:00 am to 6:00 pm, but in reality, overtime is the norm and most local companies don’t compensate their workers for it.

2. All workers in China are entitled to three national holidays, each stretching into a week of vacation: Chinese New Year (usually in late January or late February), International Labour Day (first week of May) and National Day (first week of October). While employees get the week off, the government mandates that workers “make up” for the holiday by working through the previous weekend (resulting in only three days off). In any case, you should ensure that your holidays are stated in your employment contract.

3. If you are badly treated at work, you should first complain to your personnel department, preferably in writing, with evidence to back your case. If there is subsequently no change then it could be time to speak to a lawyer. Try to find a reliable Chinese lawyer, as they will be familiar with the local regulations.

4. If your company wants to fire you for any reason, they should give you one month’s notice, first providing verbal and written warnings in cases of alleged misconduct.

China labor contracts:

China’s new labor contract law targets, primarily domestic companies that do not have labor contracts and that generally fail to comply with China’s old laws. Foreign companies have had a stronger track record of signing contracts with employees and bringing to China their global work rules and environmental, health and safety practices.

According to statistics from the


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