By El Sayed H. El Ashry and Ahmed A. Kassem

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46 Edward D. Hess UPS’s current growth challenges UPS’s growth has historically been evolutionary and organic. The company had trouble in its initial international expansion efforts because it tried to export UPS people to foreign countries and to override local culture and customs. But it learned. UPS has now reinvented itself by moving from the package or document delivery business to serving the entire supply and distribution chain. UPS has changed what it is selling and it has changed the level in corporations to which it must sell – up to the CEO, CIO, and COO levels.

This not only allows the company to be faster and more efficient in developing software, but it also provides tremendous benefits to customers as all MED products include software with a common look and feel. Shared service organizations that consolidated functions such as general accounting and payroll were formed as well. Results: The actions implemented during MED’s restructuring period helped the company to regain its competitiveness, and effectively set Profitable growth at Siemens Medical Solutions 25 the stage for the implementation of a comprehensive, ongoing initiative to drive the company’s growth.

To effectuate this model, UPS acquired nearly thirty service providers with expertise in different areas of synchronized commerce: freight forwarders, customer clearers, a bank for export financing, fulfillment services, customer returns and repairs. Eskew defined synchronized commerce as the coordinated 40 Edward D. Hess and efficient movement of goods, information, and financing along the supply and distribution chain. 4 billion in revenue in 2004. Arguably, before 1998, UPS grew by moving into new geographic areas and by doing there what it had done well in other places.

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