Local networks in Poland and in the United Kingdom have also been built up and an utter focus has been laid on Asia.

By reinvesting the funds generated, the company sustains growth through acquisitions, the development of new products and the improvement of the services provided. A result of the reinvesting process is the Package Flow Technology. This is a multi-year re-engineering of their pickup and delivery of packages. It has proved very efficient.

Types of Costs Involved

As in the case of FedEx, UPS is basically confronted with the same types of cost. The variable costs are the wages of the employees; these are strongly related to the number of hours they spend working. Others are the ones which depend on the distance of transportation, or on the weight of the package. As for the fixed costs, they consist of the amortization, the salaries paid to the employees in...
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