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The World is FlatAs a result, UPS cut the time it takes autos to arrive at dealer lots by 40 percent, to ten days on average. BusinessWeek reported: “That saves Ford millions in working capital each year and makes it easy for its 6,500 dealers to track down the models most in demand... 'It was the most amazing transformation I had ever seen,' marvels Reynolds. 'My last comment to UPS was: 'Can you get us spare parts like this?'” UPS maintains a think tank, the Operations Research Division, in Timonium, Maryland, which works on supply-chain algorithms. This “school” of mathematics is called “package flow technology,” and it is designed to constantly match the deployment of UPS trucks, ships, airplanes, and sorting capabilities with that day's flow of packages around the world. “Now we can make changes in our network in hours to adjust to changes in volume,” says UPS CEO Eskew. “How I optimize the total supply chain is the key to the math.” The sixty-person UPS team in Timonium is made up largely of people with engineering and math degrees, including several Ph.D.'s ...» |
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