UPS Business Process and Space Constraint Analysis

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UPS Business Process and Space Constraint Analysis
Jon Rose
Josh Mesner
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About The Company

• Largest parcel-shipping company in the world
• Transports more than 3 billion parcels and
  documents annually
• Operates in more than 200
• countries and territories
• 344,000 employees worldwide operating 1,713
  facilities

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UPS and Technology

• Use of advanced computer systems to track
  packages continuously
• All packages given UPC and
• routing numbers
• Scanned at every location to ensure accuracy

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Fishersville Location

• Brian Holiday Manager
• Receives demand from Shenandoah Valley
• One of the oldest distribution
• centers in the company
• Facility has been previously expanded
• Additional space constraint measures

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Facility Layout

• Distribution centers and hubs are lined with
  conveyer belts to transport packages
• Well-planned operations allow for lower skilled
  workers to perform jobs
• Target unloading and loading rates are 850-1000
  and 680-850 per hour, respectively
• Distribution centers operate batch processing
  running two shifts

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Richmond Roanoke Burtonsville, Md
Local Delivery
Morning Shift
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Richmond Roanoke Burtonsville, Md
Local Pickup
Evening Shift
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Space

• As one of the oldest distribution centers,
  Fishersville is also one of the smallest
• Seasonal demand causes problems with limited
  facility size
• Due to growing area, demand is constantly on the
  rise

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Seasonality
Christmas
Mothers Day
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Main ProblemsPareto Analysis
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Current Temporary Solutions

• Mobile Distribution Centers(MDCs)
• -trailers that attach to the main conveyer
  belt and are used to load additional trailers
• Outside loading and unloading of package cars
• Temporary workers during forecasted
• times of heavy demand

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Possible Solutions

• Add to the existing facility, providing the
  ability to handle more volume
• Build a larger facility to replace the current
  center
• Build an additional center to
• reroute excess demand

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Our Recommendation

• Building of a new facility in a new location to
  help balance demand
• Growth of the Shenandoah valley area requires a
  long-term solution
• Use of MDCs and temporary solutions allow time
  for planning while new location is determined

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Planning a New location

• Center of Gravity Method
• Location cost-profit-volume
• analysis
• Factor Rating analysis

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Conclusion

• Main problem for Fishersville
• distribution center is the lack
• of space
• Solution Build a new facility,
• using current temporary solutions
• while planning and determining
• ideal location based on demand and costs