UPS Streamlines Supply Chain Operations

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UPS has formed UPS Supply Chain Solutions, which combines the sales, marketing, finance and technology resources of its supply chain subsidiaries, the company said yesterday.


The new organization is designed to make it easier for customers to access UPS logistics, freight, financial and consulting services. The sales overhaul also is aimed at handling growth in the company's packaging businesses, which generated 8 percent of the total revenue of $30.6 billion at UPS last year.


In announcing the new organization, the company also said that Dan DiMaggio, formerly CEO of UPS Logistics Group, will direct UPS Supply Chain Solutions' global sales, marketing and solutions teams.


Insiders said the decision to form SCS resulted in part from acquisitions since UPS went public in 1999 that left the company with overlapping customers and competing sales forces.


UPS said the new group could generate hundreds of millions of dollars in additional package revenue a year.


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