UPS competes globally with information technology

Question 1: What are the inputs, processing, and outputs of UPS's package tracking system?

Inputs: The inputs are detailed information (customer information, package information), pickup,
delivery, current location, bar coded label, special software program by using the UPS Web site.

Processing: The all information are transmitted to a central computer, distribution centers, logistical
planning, (DIAD) program which was their drivers had been handheld delivery information Acquisition
Device, called UPS net, DIAD is collected from scan able label on packages, and changing schedules.

Outputs: UPS served tools that able to a customer which is Cisco Systems, to include UPS functions, such
as tracking and cost calculations, into their own Web sites. Destination (on the way), pick-up and delivery
schedule.

Question 2: What technologies are used by UPS? How are these technologies related to UPS's business
strategy?

Everything is firstly started about “ scannable bar-coded label “. It’s the main thing that they use their
daily work. Also customers know fully, detailed information about their shipment. Which contains
complete information about the sender, location of where it must go, and date of shipment should have
arrive. If sender wants to get information about the package they can go to company’s web site and
download and print it out. Before the packages picked up information transmitted to 2 main servers
Mahwah, NJ or Alpharetta, GA and send to nearest distribution centers of its final destination. Dispatchers
of these centers received the information use the special software plan the most efficiency delivery way
to each driver to consider of traffic and weather conditions.

1. UPS drivers used their daily work activities handheld computer named Delivery information
Acquisition Device (DIAD) which can access wireless network. Drivers once he/she log in daily routes
downloaded onto their device. The DIAD automatically captures customers signatures according pickup
and delivery information. Package tracking process is then transmitted to UPS main server and storage
on it. From there information can be accessed to the worldwide. To provide proof of delivery to customers
or to respond customer questions. Process takes only 60 seconds and new information throughout DIAD
to be available on the UPS’s site.

2. In 2009 UPS launched new program called Web Based Posts Sales Order Management System
(OMS) which designed to global shipping services to provide service dangerous shipment such as high-
tech electronics, aerospace, medical equipment and any other company’s critical shipment/inventory to
fully responsibility.

These technologies involved company’s motto “best service and lowest rates “

They implement “best service” strategy. DIAD helps make it work easier and quicker for the both sides,
customers and company staff. It saves time, collect the all information make it complete. As for the
company side dispatchers schedule way routes, traffic/weather conditions and notice the drivers.
According to this information drivers can make their work more efficiency. Company mainly focused on
their high level of customer’s satisfaction. Customers can easily go to company’s Web Site and to get
complete information about the packages. All the package are insured. UPS approximately spend 1billion
USD in a one year customer’s satisfaction guarantee for their customers while reducing cost low.
Question 3: What strategic business objectives do UPS's information systems address?

UPS has a several business objectives.

1. Scannable Bar-code: One of the MIS business strategy objective. this system's objective is to use time
more efficiently and use low labor force in classify the packages destination and reduce human error in
classifications that will reduce the cost. It means by reducing cost they can keep up the lowest rate.

2. In delivering UPS uses special software that help drivers to take the most efficient routes to deliver the
package, plus this system considers the traffic and weather conditions.

3. DIAD: Every driver has device that has information about at automatically captures customer's signature
along pickup and delivering information from UPS's central computer. Every deliver person can access
information about the package and the customer can check the package it delivered or not. Also the
signature that from the delivery will be proof, sender can check it.

4. Cisco system: contains the customer can know about their packages information more detailed such as
shipping rates, determine time in transit, print labels, schedule a pickup, and track packages. Those actions
can get the high technology to the senders and it can reduce the time losing. They can check their tracking
and cost calculations and shipments cost without the UPS site.

5. OMS: Advanced delivering system that takes packages from the warehouse of companies and delivers
their fulfillment parts of equipment more quickly with in efficient routes.

Question 4: What would happen if UPS/s information systems were not available?

1. Customer/ Sender: If there were not available for information system, the customer will decrease
faster. Senders want to choose the good one which has high proof and information system and easy to
understand system.

2. Global delivering: For the another countries it will be difficult to get their packages. They will not know
how is going their packages. It means no information about their packages.

3. Saving Cost: Maybe it will be good to saving cost for the company. They do not need enough employees
and machines.

4. Time Losing: Those systems always give the information about their packages. For the company it is the
one of the advantage but if they has nothing then the company can lose their time.

At lastly, UPS will not be successful as today!

Have you come across the case study of UPS using technology to effectively achieve their mission and
objectives effectively and efficiently? What were your answers to the questions to that famous case
study? Well below are my answers to that case study. if you haven't come across this famous case study,
then click on this link for it
http://disciplinas.stoa.usp.br/pluginfile.php/106669/mod_resource/content/1/caso-ups-13e.pdf.

UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

The input, Processing and output of UPS’s package tracking system can be explained with the process
chart below:

1. UPS used the following technologies in pursuing their business strategies:

 Computer Center (Data Center): This is the Data Center built by UPS that handles the processing
and storage of all the global data that is feed into the tracking system. This help in the streamlining
of thier business operations where every UPS office in the world could connect the central
database to track products that are transited, was picked up and or delivered at their respective
offices.
 Barcoding technology – The Barcode technology goes with their strategy in delivering packages at
the fastest possible time. The barcode technology which allows dispatchers to scanned straight
into the system, package details reduces the time dispatchers would have spent entering that
data one after the other from the package into the computer.
 Delivery Information Acquisition Device (DIAD) – The DIAD also supported their business strategy
of streamlining their business operations to provide best service to the customers. This is because
the devices being connected to wide Area network of UPS via internet, helps them to collect pick
up or delivery data in real time and updates the tracking system under sixty seconds. With the use
of special software, best possible routes are downloaded onto the DIAD which helps the drivers
to use the efficient routes in delivering the packages, A strategy to cut operational cost.
 A Web-based Post Order Management System. Management of other businesses supply chain
with its own Global delivery network technology, i.e. the web-based Post Order Management
 System, was another new product/business model that UPS introduced as a strategy to stay in
competition by offering lowest rates for providing supply chain solutions as compared to those
companies managing it themselves.
 UPS’s Wide Area Network and Internet: UPS’s wide area network helped in connect all their
offices globally to connect to the centralized Data Center using Internet so that they can update
the tracking system with live information and data for customers to also view in real time.
a. The strategic business objectives that UPS’s information system address are:
 Increasing cost savings and safety
 Delivering packages at the shortest possible time
 Increasing company revenue by introducing new products and business models
 Updating customers in real time, progress of their packages
 Streamlining companies operations
 Building a Global delivery network
b. The following are some of the issues that would have happen if UPS had not introduced
information system in their operations:
 Inefficient delivery of Packages: they currently have a software that detects the best efficient
routes to the destination of each package. So without this software, drivers would have spent
a long time delivering packages which would have led to the burning of lots of fuel and
customer dissatisfaction.
 Delayed communication with customers about package progress: Without the tracking
system which allow customers to track thier their packages, Customers would have had to
wait till their packages are given them. Also Customers care representatives wouldn’t have
any information on package delivery progress to tell customers, in case they call, which would
lead to customer dissatisfaction.
 Limited Business model to generate income: The introduction of a Web based Post Sales
Order management System to provide supply chain solution, was another business model and
new product to help then generate additional revenue. So UPS wouldn’t have had this
additional revenue generation venture in their business
 Un-Streamlined operations: The Package tracking system accompanied by the Computer
Center with communications networks and database and the DIAD, allowed each branch,
offices and delivery officers of UPS worldwide to all work from the same database which allow
each center to update the system constantly and on time, when an order is picked or delivered
or transited at their office. Without this system, dispatchers would have had to wait till they
finish delivery for the day before coming to the office to update supervisors. Customer care
officers wouldn’t have known the state of a package until it gets to their desk and would cause
customer dissatisfaction when they call in. Dispatchers and customer care officers would have
also spent a lot of time entering extracting package details from packages that are transiting,
or have been delivered and has to be delivered to the customer.
 Staff Demotivation: In this age, most employees are motivated when thier work is backed by
technologies that makes them more productive, smart and easy to accomplish without stress.
Imaging when a liquid pours onto or the wind blows away, the sheet the dispatchers would
have recorded the pick-up and delivery information? Then there is loss of valuable data.
Customer care officers would be soo demotivated when customers has to call them and insult
them all they because they don’t know where their packages are.
CASE SUMMARY

UPS has created its own information system with Delivery Information Acquisition Device (DIAD) and Web-
based Post-Sales Order Management System (OMS) globally by using developed information technology.
These special systems help the company to reduce the cost of transaction greatly. By building its efficient
order information management system, UPS can make optimal routing strategy, place orders online, and
track shipments to meet customer needs. These information systems guarantee the possibility of two-day
delivery nationwide as well as lower warehousing and inventory costs for the company.

1. What are the inputs, processing, and outputs of UPS’s package tracking system?

•Inputs:

–The inputs include package information, customer signature, pickup, delivery, time-card data, current
location (while en route), and billing and customer clearance documentation.

•Processing:

–The data is transmitted to a central computer and stored for retrieval. Data is also reorganized so that it
can be tracked by customer account, date, driver, and other criteria.

•Outputs:

–The outputs include pickup and delivery times, location while en route, and package recipient. The
outputs also include various reports, such as all packages for a specific account or a specific driver or route,
as well as summary reports for management.

2. What technologies are used by UPS? How are these technologies related to UPS’s business strategy?

•Technologies include handheld computers (DIADs), barcode scanning systems, wired and wireless
communications networks, desktop computers, UPS’s central computer (large mainframe computers),
and storage technology for the package delivery data. UPS also uses telecommunication technologies for
transmitting data through pagers and cellular phone networks. The company uses in-house software for
tracking packages, calculating fees, maintaining customer accounts and managing logistics, as well as
software to access the World Wide Web.

3. What stategic business objectives do UPS's information system address?

Some problems this information system solves relate directly to logistics and supply chain activities, not
just for itself, but also for other companies. These services include supply chain design and management,
freight forwarding, customs brokerage, mail services, multimodal transportation, and financial services,
in addition to logistics services. Because of the advanced integration of its technology, UPS can provide
these services cheaper and more efficient than most companies can create them in-house.

•Operational excellence:

–UPS has maintained leadership in small-package delivery services despite stiff competition from FedEx
and the U.S. Postal System by investing heavily in advanced information technology.

•New products, services, and business models:

–In June 2009 UPS launched a new Web-based Post Sales Order Management System (OMS) that manages
global service orders and inventory for critical parts fulfillment. The system enables high-tech electronics,
aerospace, medical equipment, and other companies anywhere in the world that ship critical parts to
quickly assess their critical parts inventory, determine the most optimal routing strategy to meet customer
needs, place orders online, and track parts from the warehouse to the end user.

•Competitive advantage:

–UPS is leveraging its decades of expertise managing its own global delivery network to manage logistics
and supply chain activities for other companies. It's Supply Chain Solutions division provides a complete
bundle of standardized services to subscribing companies at a fraction of what it would cost to build their
own systems and infrastructure.

4. What would happen if UPS's information systems were not available?

•Arguably, UPS might not be able to compete effectively without technology. If the technology were not
available, then UPS would, as it has through most of its history, attempt to provide that information to its
customers, but at higher prices. From the customers’ perspective, these technologies provide value
because they help customers complete their tasks more efficiently. Customers view UPS’s technology as
value-added

•services as opposed to increasing the cost of sending packages.

-Incurs more cost

-Slow in providing information to customers

-Slow Operation

-Slow in finsing customer information

UPS has created a new Web-based system for managing global service orders and
inventory for critical-parts fulfillment. The UPS Post Sales Order Management System
(OMS) lets companies assess their critical-parts inventories, determine the best routing
strategies, place orders online and track parts from warehouse to end user. The service
was designed to give companies more visibility and control over global inventory and
service orders in industries such as high-tech, electronics, medical equipment and
aerospace, UPS said. OMS offers visibility into the complete delivery process, allowing
uses to see when an order is placed, picked up, on a flight to its destination, and
delivered. An automated e-mail or fax feature keeps customers apprised of each shipping
milestone, providing notification of any changes to flight schedules for commercial airlines
carrying parts. A feature called "Closest Warehouse" allows companies to identify the
warehouse nearest to the final destination for single or multiple parts orders. An
"Inventory Inquiry" feature determines on-hand, reserved and available inventory
quantities by global warehouse location. Once orders are complete, companies can print
documents such as labels and bills of lading in multiple languages, including Japanese or
Chinese.