Ups – Key Performance Indicators

UPS - Key Performance Indicators

LaTonya R. Castillo

BUS 5008: Supply Chain and Operations Management

John F. Kennedy University

Fall 2014

UPS – Key Performance Indicators

        In 2013, UPS published their Corporate Sustainability Report. Although the company is committed to creating less waste, lower emissions and fewer impacts all around. They are also “Committed to More” (UPS, 2013). When looking at the many facets of their business, UPS wants to do more in the way of creating connections around the world, even though a main function is to deliver packages. UPS is striving to reduce their imprint on the environment, more for their customers and our communities around the world. Key performance indicators are a type of performance measurement. They evaluate the success of an organization. Success may be defined as achieving some level of an established goal. It can also be defined as making progress toward outlined strategic goals. In their sustainability report, indicators outlined several key performances, of which I will mention a few.

        In their Global Operations, UPS wanted to improve their full-time employee retention rate. Since 2010, their overall retention rate has decrease from 91.9 percent to 90.4 percent in 2013. The company established a goal to maintain its employee retention rate at 87.5 percent by 2016. Based on the 2013 figures, they are above their goal. They do expect the rate to continue to decline, as they still have a large number of employees who are approaching retirement age (UPS, 2013). Global Operations is also responsible for lost time injury frequency and auto accident frequency, of which both have sustained a steady decline from 2010 to 2012. Lost time injury frequency examines injury cases involving days away from work. Auto accident frequency examines the total number of auto accidents per 100,000 hours driver hours. UPS believes that the number of injuries and accidents are in fact higher because of international expansion and sever weather events. However, both areas showed slight improvement in the following year, which remained above their 2016 goal (UPS, 2013).