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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