Proactive Management of Risk at UPS

Since the founding of UPS, this company has come to face many challenges and many of these said challenges can be attributed to the way through which this company has come to manage risk. Conventional policies have been adopted by this company in ensuring that it not only provides the best services to their customers but it also ensures the safety of the goods that it transports. This has made a majority of its customers’ gain the confidence necessary for them to continue working with UPS in their day to day lives since it guarantees them against any profit losses.

Through the establishment of its proactive shipment monitoring scheme, has encouraged its customers to turn towards the acquisition of UPS policies because of the risks involved in the diverse number of shipments that they tend to move (Jaeger, 2010). The employment of this scheme has ensured that UPS has reduced the significant amounts of uncertainty with regards to their effectiveness hence proving the fact that its policies are farsighted.

Among of the most widely used strategies that have been implemented by many companies has been the introduction of new products to secure their customer bases, and UPS has not been an exception. In current business environment, the adoption of a proactive shipment scheme has become a practical necessity that has proven to be highly successful for UPS since it adopted it and it as ensured that it has continued to have more customers. It can, therefore, be said that the adoption of this scheme has enabled UPS to gain an edge over its competitor and has ensured that it remains the largest company, by the number of customers, of its kind in the world.

 The adoption of the abovementioned scheme by UPS can be said to be extremely prominent in nature and these have been put in place as a way of targeting those customers who are security conscious. This current scheme, therefore, has required that the company develop a strategy which will make the customers within its target market to wish to procure the services of UPS because they would feel that their shipments are not only safe, but would also be guaranteed that they are secured against any losses (Williamson, 2013).

The biggest benefit of this scheme is the fact that the company’s customers can introduce well-organized, inventive models and improve the services to their customers. Because of the development of this shipment scheme by UPS, a large retail company can now introducing an original model to increase inventory between the stores that it owns and ensure the provision of better product accessibility.

Among the benefits that can be acquired by customers is that there is regular insurance coverage. Thos coverage will cater for the selling price, expedited shipping fees and temperature-sensitive shipment intervention services.

In a competitive business environment, the task of bringing in customers who can create a profit has become a priority for many companies in the country and these include UPS. This is because there has developed the realization that UPS must provide acceptable returns to its shareholders or it might end up losing investors.