In research a global reverse logistics company and give a full report about the company including a full historical description of the company and major officers. In your research, locate financials about the company from the past 5 years and include this in the paper. Include everything about this company as if you were researching this company as a prospective employer.
Introduction
Trends in the supply chain process have been changed with time. Modern organizations are looking to integrate with these new trends to gain business sustainability and create the best impact on the environment. The reverse logistics is a process of moving products from the final destination. The purpose is the product reuse. Reusing the product saves the cost and helps the company become the major contributor to the sustainable environment. The United Parcel Service (UPS) is effectively managing the reverse logistics. It has reduced the environmental impact and facilitated users to reuse boxes. United Parcel Service (UPS) is a multinational supply chain and package delivery company.
Historical Description of the Company
The United parcel service was founded in 1907. The story started with James Casey. He established the American messenger company. Initially, the focus of the management was retail stores. The package delivery was limited. Furthermore, at that time, the company also worked for the United States postal service. However, the company evolved interestingly, as it acquired the Model T Ford. Delivering the vehicle was a big attainment. It is a fact that the company shared its services with many local companies. However, the first major expansion was in California, which forced the management to change the name of the company. The company was named United Parcel Service. After this rapid expansion process, the company introduced the conveyor belt for managing and levering different packages (Smith, 2013).
Furthermore, in 1930, operations were started in New York and other major cities of the United States. This reverse logistic company established headquarters in Greenwich. In 1975, the company started its global services. It started operations in Canada in 1975. Moreover, the company was authorized by the federal aviation administration in 1985. It helped to launch the air service to grab the immense range of customers in different states. Due to efficient operation and modern business approaches, it has become the fastest growing air service in the competitive market. Interestingly, it has been revealed that the company integrated with the technology to grow and expand rapidly. The Delivery Information Acquisition Device was created to track its delivery services. It was a remarkable achievement that powered up the brand, enriched services, and built trust (Hiskey, 2010).
The acquisition of Menlo Worldwide Forwarding and mailboxes was the best move. In 2005, LYNX Express Ltd was acquired. The cost of this acquisition was US$97.1 million. Recent acquisitions are TNT express and Kiala, and it depicts the prominent growth or expansion strategy of the company.
Major Officers
Major Officers of United Parcel Service (UPS) come under the management committee. There are eleven officers, which are playing their roles in the company. The lists of major officers are as under
- David P. Abney (Chairman)
- Jim Barber (COO)
- Norman M. Brothers (Vice President, Corporate Secretary)
- Nando Cesarone (US international President)
- Kate Gutmann (Chief Sales)
- Teri Plummer McClure (Chief Human Resource)
- Richard Peretz (CFO)
- Juan Perez (Information and Engineer Officers)
- Scott Price (Strategy & Transformation)
- Kevin Warren (Chief Marketing Officer)
- George Willis (President of US Operations
5 Years Financials
Five years financial of United Parcel Service (UPS) has been included in the appendix. Please see the appendix for details of 5 years financial of United Parcel Service (UPS).
Other Facts
United Parcel Service (UPS) has introduced a return service. It is a modern supply chain or logistics trait that has been introduced to create the best impact on the environment. Customers in different states or regions have to drop their returns at the United States Postal services. Recently, this organization has tested these services with some major retailers. Now, after gaining success, the company has made these services available in different regions. The company has created many drops off locations. Remarkably, it has saved the cost of the company and enabled cheaper services. Along with the reduction of the environmental impact, the reverse logistics helped the company increase the velocity and market share in the logistics company. Due to these reverse logistics initiatives, United Parcel Service (UPS) increased the customer service standards and retention levels. Interestingly, the reverse logistics approach facilitates the company in automatically consolidating the data of systems and partners. Thus, United Parcel Service (UPS) streamlined these advantages or benefits of the reverse a logistics. Ultimately, it has become the prominent source for the management to contain the long-term business sustainability as well (Burnson, 2010).
Conclusion
In the end, it is to conclude that United Parcel Service (UPS) is growing rapidly due to the reverse logistics approach. The firm has become the major contributor to the sustainable environment. Comprehensive historical research has shown the intention of the company. However, there is a need of evolvement with the time to align with new reverse logistics trends. The reverse logistics must be tech savvy that can lead towards a sustainable competitive advantage in the competitive logistics industry.
References
Burnson, P. (2010, August 12). UPS introduces new reverse logistics service. Retrieved from http://www.scmr.com/article/ups_introduces_new_reverse_logistics_service
Hiskey, D. (2010, June 29). Ups Was Founded By Two Teenagers With One Bicycle And $100 Borrowed From A Friend. Retrieved from http://www.todayifoundout.com/index.php/2010/06/ups-was-founded-by-two-teenagers-with-one-bicycle-and-100-borrowed-from-a-friend/
Morningstar. (2018, September 7). United Parcel Service Inc Class B UPS. Retrieved from http://financials.morningstar.com/income-statement/is.html?t=UPS®ion=usa&culture=en-US
Smith, R. (2013, November 30). 5 Things You Probably Didn’t Know About UPS. Retrieved from https://www.fool.com/investing/general/2013/11/30/5-things-you-probably-didnt-know-about-ups.aspx
Appendix
Income Statement
| INCOME STATEMENT | ||||||
| Fiscal year ends in December. USD in millions | 2013-12 | 2014-12 | 2015-12 | 2016-12 | 2017-12 | TTM |
| Revenue | 55438 | 58232 | 58363 | 60906 | 65872 | 69004 |
| Cost of revenue | 44127 | 48726 | 46059 | 50816 | 53304 | 56554 |
| Gross profit | 11311 | 9506 | 12304 | 10090 | 12568 | 12450 |
| Operating expenses | ||||||
| Other operating expenses | 4277 | 4538 | 4636 | 4623 | 5039 | 5282 |
| Total operating expenses | 4277 | 4538 | 4636 | 4623 | 5039 | 5282 |
| Operating income | 7034 | 4968 | 7668 | 5467 | 7529 | 7168 |
| Interest Expense | 380 | 353 | 341 | 381 | 453 | 542 |
| Other income (expense) | 20 | 22 | 15 | 50 | 72 | 280 |
| Income before income taxes | 6674 | 4637 | 7342 | 5136 | 7148 | 6906 |
| Provision for income taxes | 2302 | 1605 | 2498 | 1705 | 2238 | 1716 |
| Net income from continuing ops | 4372 | 3032 | 4844 | 3431 | 4910 | 5190 |
| Net income | 4372 | 3032 | 4844 | 3431 | 4910 | 5190 |
| Net income available to common shareholders | 4372 | 3032 | 4844 | 3431 | 4910 | 5190 |
| Earnings per share | ||||||
| Basic | 4.65 | 3.31 | 5.38 | 3.89 | 5.64 | 5.99 |
| Diluted | 4.61 | 3.28 | 5.35 | 3.87 | 5.61 | 5.95 |
| Weighted average shares outstanding | ||||||
| Basic | 940 | 916 | 901 | 883 | 871 | 868 |
| Diluted | 948 | 924 | 906 | 887 | 875 | 872 |
| EBITDA | 8921 | 6913 | 9767 | 7741 | 9883 | 9752 |
Balance Sheet
| BALANCE SHEET | |||||
| Fiscal year ends in December. USD in millions | 2013-12 | 2014-12 | 2015-12 | 2016-12 | 2017-12 |
| Assets | |||||
| Current assets | |||||
| Cash | |||||
| Cash and cash equivalents | 4665 | 2291 | 2730 | 3476 | 3320 |
| Short-term investments | 580 | 992 | 1996 | 1091 | 749 |
| Total cash | 5245 | 3283 | 4726 | 4567 | 4069 |
| Receivables | 6502 | 6661 | 7134 | 7695 | 10346 |
| Inventories | 403 | 344 | 308 | 342 | 404 |
| Deferred income taxes | 684 | 590 | |||
| Other current assets | 553 | 930 | 1040 | 1245 | 729 |
| Total current assets | 13387 | 11808 | 13208 | 13849 | 15548 |
| Non-current assets | |||||
| Property, plant and equipment | |||||
| Gross property, plant and equipment | 39151 | 40620 | 41918 | 43674 | 48726 |
| Accumulated Depreciation | -21190 | -22339 | -23566 | -24874 | -26608 |
| Net property, plant and equipment | 17961 | 18281 | 18352 | 18800 | 22118 |
| Goodwill | 2190 | 2184 | 3419 | 3757 | 3872 |
| Intangible assets | 775 | 847 | 1549 | 1758 | 1964 |
| Deferred income taxes | 110 | 652 | 255 | 591 | 265 |
| Other long-term assets | 1789 | 1699 | 1528 | 1622 | 1636 |
| Total non-current assets | 22825 | 23663 | 25103 | 26528 | 29855 |
| Total assets | 36212 | 35471 | 38311 | 40377 | 45403 |
| Liabilities and stockholders’ equity | |||||
| Liabilities | |||||
| Current liabilities | |||||
| Short-term debt | 9 | 876 | 2972 | 3635 | 3960 |
| Capital leases | 39 | 47 | 46 | 46 | 51 |
| Accounts payable | 2478 | 2754 | 2587 | 3042 | 3872 |
| Accrued liabilities | 2325 | 2373 | 2253 | 2317 | 2521 |
| Other current liabilities | 2280 | 2589 | 2838 | 2690 | 2304 |
| Total current liabilities | 7131 | 8639 | 10696 | 11730 | 12708 |
| Non-current liabilities | |||||
| Long-term debt | 10390 | 9406 | 10887 | 11993 | 19829 |
| Capital leases | 434 | 458 | 429 | 401 | 449 |
| Deferred taxes liabilities | 1244 | 83 | 115 | 112 | 757 |
| Pensions and other benefits | 7051 | 11452 | 10638 | 12694 | 7061 |
| Minority interest | 14 | 17 | 21 | 24 | 30 |
| Other long-term liabilities | 3474 | 3275 | 3055 | 3018 | 3569 |
| Total non-current liabilities | 22607 | 24691 | 25145 | 28242 | 31695 |
| Total liabilities | 29738 | 33330 | 35841 | 39972 | 44403 |
| Stockholders’ equity | |||||
| Common stock | 9 | 9 | 9 | 9 | 9 |
| Retained earnings | 6925 | 5726 | 6001 | 4879 | 5858 |
| Treasury stock | -69 | -59 | -51 | -45 | -37 |
| Accumulated other comprehensive income | -391 | -3535 | -3489 | -4438 | -4830 |
| Total stockholders’ equity | 6474 | 2141 | 2470 | 405 | 1000 |
| Total liabilities and stockholders’ equity | 36212 | 35471 | 38311 | 40377 | 45403 |
Cash Flow
| CASH FLOW | ||||||
| Fiscal year ends in December. USD in millions | 2013-12 | 2014-12 | 2015-12 | 2016-12 | 2017-12 | TTM |
| Cash Flows From Operating Activities | ||||||
| Depreciation & amortization | 1867 | 1923 | 2084 | 2224 | 2282 | 2304 |
| Deferred income taxes | -246 | 385 | 540 | 123 | 1230 | 1192 |
| Stock based compensation | 513 | 536 | 574 | 591 | 584 | 617 |
| Accounts receivable | -515 | -523 | -452 | -704 | -1022 | -890 |
| Accounts payable | 218 | 276 | -147 | 461 | 592 | 862 |
| Accrued liabilities | 416 | 106 | -63 | 109 | 193 | 197 |
| Other working capital | -153 | 429 | 408 | -575 | -1223 | 182 |
| Other non-cash items | 5204 | 2594 | 4486 | 4244 | -1157 | 1594 |
| Net cash provided by operating activities | 7304 | 5726 | 7430 | 6473 | 1479 | 6058 |
| Cash Flows From Investing Activities | ||||||
| Investments in property, plant, and equipment | -2065 | -2328 | -2379 | -2965 | -5227 | -6067 |
| Property, plant, and equipment reductions | 104 | 53 | 26 | 88 | 24 | 45 |
| Acquisitions, net | -22 | -88 | -1904 | -547 | -134 | -79 |
| Purchases of investments | -2948 | -3525 | -7415 | -4816 | -1634 | -998 |
| Sales/Maturities of investments | 2957 | 3106 | 6388 | 5724 | 1990 | 1332 |
| Other investing activities | -140 | -19 | -25 | -50 | 6 | -3 |
| Net cash used for investing activities | -2114 | -2801 | -5309 | -2566 | -4975 | -5770 |
| Cash Flows From Financing Activities | ||||||
| Debt issued | 100 | 1525 | 3783 | 5927 | 12016 | 8714 |
| Debt repayment | -1875 | -1694 | -2724 | -3805 | -3939 | -4733 |
| Common stock issued | 491 | 274 | 249 | 245 | 247 | 240 |
| Repurchases of treasury stock | -3838 | -2695 | -2702 | -2678 | -1813 | -1436 |
| Cash dividends paid | -2260 | -2366 | -2525 | -2643 | -2771 | -2889 |
| Other financing activities | -425 | -205 | 2354 | -186 | -453 | 340 |
| Net cash provided by (used for) financing activities | -7807 | -5161 | -1565 | -3140 | 3287 | 236 |
| Effect of exchange rate changes | -45 | -138 | -117 | -21 | 53 | -28 |
| Net change in cash | -2662 | -2374 | 439 | 746 | -156 | 496 |
| Cash at beginning of period | 7327 | 4665 | 2291 | 2730 | 3476 | 3991 |
| Cash at end of period | 4665 | 2291 | 2730 | 3476 | 3320 | 4487 |
| Free Cash Flow | ||||||
| Operating cash flow | 7304 | 5726 | 7430 | 6473 | 1479 | 6058 |
| Capital expenditure | -2065 | -2328 | -2379 | -2965 | -5227 | -6067 |
| Free cash flow | 5239 | 3398 | 5051 | 3508 | -3748 | -9 |
| Supplemental schedule of cash flow data | ||||||
| Cash paid for income taxes | 2712 | 1524 | 1913 | 2064 | 1559 | |
| Cash paid for interest | 409 | 366 | 345 | 373 | 428 | |
+447462439809