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Logistics Value Generation is an essential feature of the functioning of any company that wants to achieve success in a specific sphere. Close attention to its five areas contributes to the organization’s prosperity. United Parcel Service (UPS) and Home Depot are well-known American companies that have acquired popularity among thousands of customers. Comparing peculiarities of the Logistics Value Generation of these organizations can help understand why they are quite successful.
The first area of Logistics Value Generation is order processing. Both these companies closely focus on this point and strive to provide their customer with fast processing of their orders. As for similarities, although these organizations get thousands of orders, they work rapidly and qualitatively to keep all clients. In addition, customers can make their order via the organizations’ online system and be sure that they will be able to obtain the chosen products without delays. However, contrary to UPS, Home Depot also allows its clients to make the orders in the store. Thus, this part of the Logistics Value Generation is efficiently functioning.
As for the second area, inventory, these organizations utilize all their resources to ensure that their clients are completely satisfied with the companies’ work and can find all the products they need. Both firms have integrated systems that provide the delivery of goods without any delays and distribution centers where the products are held. In these centers, the workers control the temperature and air humidity. Therefore, UPS and Home Depot have proper inventory management and allow clients to know what products are in stock.
The third area, transportation, is represented by the wide range of vehicles. As for similarities, the companies offer their customers all transportation services for the delivery of their goods. As for differences, while Home Depot rent their vehicles to customers, UPS has a carrier-neutral platform that manages the distribution and transportation of goods. Hence, the organizations have chosen different but effective ways to help clients avoid any problems with delivery.
As for the fourth area, warehousing, materials handling, and packaging, the organizations have various facilities and equipment. They also pay attention to the materials of the packing. However, while UPS focuses on ecological safety and brand, Home Depot strives to create wrapping, due to which store employees can quickly identify the product and the address of its delivery. Thus, the companies work not only on the goods but also on their packing.
The facility networks of the organizations are represented by many facilities, where employees try to provide communication between distribution centers and installers. It seems the network of Home Depot is developed more quality since many people control the delivery of products and check their location. However, simultaneously, the workers of UPS call their packages their patients that need to be taken care of and helped to get to new owners. The companies strive to provide all necessary conditions to avoid any problems that may occur with their goods.
After comparing and contrasting of Logistics Value Generation, represented by five areas, of UPS and Home Depot, it can be concluded that both companies care about their products and customers. Although some minor differences between them show that one organization is slightly better in one sphere, while another is more developed in others, these companies are attentive to all the details of their functioning. Therefore, it would be wrong to claim that one company is much better and more successful than another.
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