UPS stays committed to its networks
US global integrator will not be following TNT’s example in quitting logistics.
Announcing its decision largely to withdraw from logistics next year, TNT said earlier this month it had concluded the group’s strength lay in ‘designing, implementing and running delivery network businesses’. The implication was that the majority of TNT’s logistics activities were not ‘network’ operations. In contrast, rival global integrator UPS apparently remains committed to developing its worldwide logistics business as very much a network-based activity. That certainly was the picture painted by Ian Chong, European director of strategy for the US company’s UPS Supply Chain Solutions division when he outlined his organisation’s thinking on that issue after the TNT announcement. ‘In our world, logistics is a network service,’ he said. ‘That is the main focus for us now and has been from day one.’ By that, he confirmed, he meant that a large percentage of the product handled by UPS SCS was routed through the parent company’s package and freight networks.
