FedEx and UPS

Paper Summary:

This paper explains that, although historically United Parcel Service (UPS) is chronologically older than Federal Express Corporation (FedEx), UPS' revenues are twice the size of FedEx but they essentially perform the same function, the manner in which they operate is different. The author points out that, while UPS' delivery fleet is three time the size of FedEx' ground fleet; in the air, UPS' available air fleet is somewhat smaller than FedEx' air fleet. The paper relates that FedEx is using its own information technology (IT) to manage its various trade networks to provide customs brokerage, consulting and IT for trade facilitation solutions; whereas, UPS has taken a completely different approach in their pursuit of IT and its applications by partnered with four major computer manufacturers - Compaq, Dell, Gateway and IBM - to create the UPS OnLine Advantage program.

From the Paper:

"FedEx on the other hand didn't even start as a package delivery type of business. Fred Smith started it as a document delivery system primarily designed to service professional persons, particularly engineers, in the rapid movement of documents throughout the country. The company nearly didn't start at all as Mr. Smith had a terrible time finding backers for his venture that he was trying with every fiber of his being to get off the ground. Needless to say Smith got his company going but not before giving into the pressure of taking on the package delivery business, a venture he dreaded as he well knew his chief competition was and still is UPS."

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