Reports show UPS ahead of the supply chain curve

By Freddie Pierce
Written BY: k.scarpati Its difficult for any supply chain company to show economic stability in these uncertain times, let alone growth. But United Par...

Written BY: k.scarpati

It’s difficult for any supply chain company to show economic stability in these uncertain times, let alone growth.

But United Parcel Service has kept on defying the odds throughout the first quarter in 2011, with the shipping company reporting an increase in revenues and the highest gross margin in the air freight and logistics industry.

UPS’ first quarter net income of $1.11 billion is an extremely encouraging sign for the shipping company, which has operations in more than 220 countries and territories worldwide.

The shipping company’s cash flow from operations has also increased from last quarter’s, which indicating a good sign for investors with UPS.

Check out the bar chart here to see just how much United Parcel Service has grown over the past year, with the trend continuing into 2011.

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In a separate report published earlier this week, COMTEX reported that United Parcel Service has a gross margin of 48.9 percent, handily taking first place over second place Forward Air, who showed a gross margin just above 30 percent.

Gross margin shows how many sales dollars spent go toward profit, meaning UPS is getting better results for every dollar spent in the air freight and logistics industry. The report also showed that United Parcel Service has a 12-month sales figure of $49.5 billion.

2011 has just begun, but these leading economic indicators are an excellent sign for one of the world’s supply chain giants.

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