Integrating Management Functions to Advance Innovation

Introduction

UPS Supply Chain Solutions is a frontrunner in the logistics market. They are a branch of UPS that deals with contract logistics and customs brokerage. At the UPS Supply Chain Solutions in Coppell, Texas, there have been patterns of erratic attendance, high turnover, negative attitudes among the employees and a lack of team environment. With these problems existing, customer service has deteriorated as well. The customer service is so bad that there has been a significant increase in complaints as well as a low customer retention rate. Meeting after meeting has been held with upper management on what to do about the situation. One solution for the situation is a massive layoff and closing this site all together since it is costing more money than what it is bringing in.

Since that solution seems so drastic, implementing a rewards system called True Rewards has been brought to the upper management’s attention. They have stated that this will be the last hope for this UPS site. They are hoping that by motivating their employees with goals and rewards and by creating a sense of teamwork, the UPS employee morale will improve, thus improving customer service.

Problem

The one significant problem is that some of the customer service representatives having a poor attitude which has resulted in an increase of customer complaints. This problem cannot continue to exist. The customer retention rate has been dropping at an alarming rate and the employee’s attitude about customers has not improved. Many of the customer service representatives have displayed a lack of enthusiasm, they have had erratic attendance and they only perform the bare minimum of duties that allows them to continue to stay employed. Since the customer service is so bad, there has been talk of closing this business altogether and this site’s reputation has taken a turn for the worst.

The reason that UPS has this problem is because the managers do not take the time to engage their...