Case (3) How UPS maintains its dependability: What do you do when it's coming up to the biggest gift-giving time of the year, you are responsible for the gifts' delivery and your aircraft, which are vital for dependable delivery, are grounded by a freak snowstorm a continent away, or mechanical problems, or an air traffic controllers dispute in France? That is the potential problem facing all global parcel delivery companies, and it's made worse when customers blame you for any non-delivery, Generally, freight operators have to absorb the cost when a delivery doesn't arrive on time, so weather and other disruptions directly affect their customer service, reputation and, ultimately, profitability. UPS, the largest express carrier and package delivery company in the world, reckons that each late shipment will cost them between $5 and $30 in revenue. And with almost 16 million packages and documents delivered worldwide every day it only takes a fraction of a percentage point of tateness for the total cost of any lack of dependability to be huge. So what does UPS do to minimize disruption to their delivery network when it's coming up to a peak demand time like Christmas and there is a possibility of bad weather? The obvious thing is to very carefully keep a constant watch on the weather forecast, and indeed they do have meteorologists and other staff who do this. But they also build in a buffer of extra operational capacity. Ad UPS headquarters a hot status board' on the wall identifies cities and regions where the company has spare pilots and planes whose task is to rescue volume that is the spare resources are used to come to the aid of packages stuck somewhere. UPS says that this hot spares program rescues more than 1 million paclages annually and saves the company more than $20 million in revenue. Questions 1. what is the potential problem facing all siobal parcel ddivers companies? 2. Explain the direct affect for this companies ira delivery doesn't arrive on time? 3. What does UPS do to minimize disruption to their delivery network when it's coming up to a peak demand time and there is a possibility of bad weather