Methods for extension of ground shipment windows through a supplier collaboration initiative

Abstract

Amazon.com is a leading retailer and UPS is the leading package delivery company in the world. Amazon spends hundreds of millions of dollars each year shipping products to customers via parcel carriers such as UPS. Arguably, both companies rely on each other for their future success and are therefore interested in developing a closer relationship. But supplier collaboration efforts are challenging and partnerships between industry leading companies are not common. This research paper demonstrates a case study where two industry giants are working together on a process improvement projects to better serve their customers. This project has a goal of finding opportunities to delivery and sort UPS Ground packages more efficiently so as to allow for a longer window of time each day that the UPS Ground ship method is available. Additional goals exist around implementing more consistent processes and delivering product to UPS earlier in the evening for more efficient sorting. This project demonstrated that significant transportation savings can be achieved through these process improvements. Amazon and UPS are able to work together in a productive way to strengthen their long term relationships.