Business Analysis of UPS

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of UPS

Business Overview

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States. The International Package segment provides guaranteed day and time-definite international shipping services in Europe, the Asia Pacific, Canada and Latin America, the Indian sub-continent, the Middle East, and Africa. It offers guaranteed time-definite express options, including Express Plus, Express, and Express Saver. The Supply Chain & Freight segment offers international air and ocean freight forwarding, customs brokerage, truckload freight brokerage, distribution and post-sales services, and mail and consulting services in approximately 220 countries and territories; and less-than-truckload and truckload services to customers in North America. The company also offers shipping, visibility, and billing technologies; and insurance, financing, and payment services. It operates a fleet of approximately 114,000 package cars, vans, tractors, and motorcycles; and owns 40,000 containers used to transport cargo in its aircraft. United Parcel Service, Inc. was founded in 1907 and is headquartered in Atlanta, Georgia.

UPS

UPS


R&P Rank: 43
Sector: Transportation & Logistics
Industry:Air Delivery & Freight Services
H.Q Location:Georgia
Website: www.ups.com
Company Address:
55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Ph:404-828-6000

Business Analysis of UPS

The Transportation & Logistics Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how UPS compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by UPS to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of UPS with an interactive chart.

  1. Revenue Growth: UPS reported a revenue growth of 4.4% year-on-year during 2016. Air Delivery & Freight Services Industry grew at 8.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, UPS spent 6.0% of its total revenues on COGS. Air Delivery & Freight Services industry average (COGS share of revenue) in the same period was 35.5%
  3. R&D share of Revenues: UPS R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, UPS spent 58.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Air Delivery & Freight Services industry average SG&A spending in the same period was 38.9%
  5. Inventory share of Revenues: UPS Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, UPS invested 5.0% of its total revenues on Accounts Payable (A/P) Air Delivery & Freight Services industry average Accounts Payable investment in the same period was 5.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, UPS invested 12.6% of its total revenues on Accounts Receivable (A/R). Air Delivery & Freight Services industry average Accounts Receivable investment in the same period was 14.0%
  8. PP&E share of Revenues: As a percentage of revenue, UPS invested 30.9% of its total revenues on Property, Plants, and Equipments (PP&E). Air Delivery & Freight Services industry average PPE investment in the same period was 36.4%
  9. Intangibles share of Revenues: As a percentage of revenue, UPS invested 9.1% of its total revenues on Intangibles. Air Delivery & Freight Services industry average Intangibles investment in the same period was 13.4%
  10. Net Margins: UPS Net Margins in the year 2016 were 5.6%. Air Delivery & Freight Services industry average Net Margins in the same period were 4.1%

Sector and Industry Association of UPS

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

UPS is associated with Industrials Sector Group, Transportation & Logistics Sector, and Air Delivery & Freight Services Industry.

Transportation & Logistics sector is comprised of the following industries: Air Delivery & Freight Services; Railroad Transportation & Logistics; Shipping Transportation & Logistics; Trucking Transportation & Logistics. The definitions for each of the industries is as follows:

  • Air Delivery & Freight Services industry includes companies providing Air transportation and logistics products and services to the Industrial sector. It also includes companies that manage airports. Courier and logistic services primarily involving air transportation are also part of this industry.
  • Railroad Transportation & Logistics industry includes companies providing transportation and logistics products and services to the Industrial sector using railroads. It also includes companies that manage train depots.
  • Shipping Transportation & Logistics industry includes companies providing shipping transportation and logistics products and services to the Industrial sector. It also includes companies that manage bridges & tunnels.
  • Trucking Transportation & Logistics industry includes companies providing trucking transportation and logistics products and services to the Industrial sector. It also includes companies that manage roads, bridges, tunnels.

Industry Ranking of UPS

With $60.9 billion revenues, UPS ranked number 1 of all the companies in the US Air Delivery & Freight Services industry. There were a total of 14 public companies in the US Air Delivery & Freight Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Air Delivery & Freight Services industry by revenues during 2016 were:

  1. UPS ($60.9 billion)
  2. Fedex ($50.4 billion)
  3. XPO Logistics ($14.6 billion)
  4. C. H. Robinson Worldwide ($13.1 billion)
  5. Expeditors ($6.1 billion)
  6. Hub Group ($3.6 billion)
  7. Atlas Air ($1.8 billion)
  8. Bristow Group ($1.7 billion)
  9. Air Methods ($1.2 billion)
  10. Forward Air ($982.5 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of UPSand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ups

Fedex (FDX) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Fedex Corp with $50 billion revenues in the year 2016 was the number 2 Air Delivery & Freight Services company. Read this report to know the top competitors of Fedex and identify growth and cost optimization opportunities of Fedex

XPO Logistics (XPO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

XPO Logistics, Inc. with $15 billion revenues in the year 2016 was the number 3 Air Delivery & Freight Services company. Read this report to know the top competitors of XPO Logistics and identify growth and cost optimization opportunities of XPO Logistics

C. H. Robinson Worldwide (CHRW) Business Analysis – Analyze Historical Performance,...

C. H. Robinson Worldwide Inc with $13 billion revenues in the year 2016 was the number 4 Air Delivery & Freight Services company. Read this report to know the top competitors of C. H. Robinson Worldwide and identify growth and cost optimization opportunities of C. H. Robinson Worldwide

Expeditors (EXPD) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Expeditors International Of Washington Inc with $6 billion revenues in the year 2016 was the number 5 Air Delivery & Freight Services company. Read this report to know the top competitors of Expeditors and identify growth and cost optimization opportunities of Expeditors

Hub Group (HUBG) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Hub Group, Inc. with $4 billion revenues in the year 2016 was the number 6 Air Delivery & Freight Services company. Read this report to know the top competitors of Hub Group and identify growth and cost optimization opportunities of Hub Group

Atlas Air (AAWW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Atlas Air Worldwide Holdings Inc with $2 billion revenues in the year 2016 was the number 7 Air Delivery & Freight Services company. Read this report to know the top competitors of Atlas Air and identify growth and cost optimization opportunities of Atlas Air

Revenues Analysis

UPS (UPS) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of United Parcel Service Inc (UPS) from 2012 to 2016. UPS generated a total of $60.9 billion revenues during 2016. UPS reported a revenue growth of 4.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

UPS (UPS) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of United Parcel Service Inc (UPS) from 2002 to 2016. UPS generated a total of $60.9 billion revenues during 2016. UPS reported a revenue growth of 4.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

UPS (UPS) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of United Parcel Service Inc (UPS) revenue growth with Air Delivery & Freight Services industry growth during the last five years from 2012 to 2016. UPS reported a revenue growth of 4.4% year-over-year during 2016. The Air Delivery & Freight Services industry growth was 8.2% year-over-year during 2016. UPS growth was slower than the industry during 2016.