Interactive Session : Technology

UPS Competes Globally with Information Technology

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

           Inputs of UPS’s package tracking system is scan bar-coded label attached to a package which contains detailed information about the sender, the destination and when the package should arrive.

           The processing of UPS’s package tracking system is before the package is picked up, information from the “smart” label is transmitted to one of UPS computer centers in Mahwah, New Jersey or Alpharetta, Georgia and sent to the distribution center nearest its final destination.

            The output of UPS’s package tracking system is customers download and print their own labels using special software provided by UPS or by accessing the UPS Web site.

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

             UPS has used the dispatchers in computer center to download the label data and use special software to create the most efficient delivery route for each driver that consider traffic, weather condition and the location of each step. By using the software, UPS estimate it save 3 million fewer gallon of fuel of every year. This technology related to UPS’s business strategy which is best services and lowest rates.

             Moreover, to accomplish business strategy which UPS want to increase cost savings and safety, UPS are train driver to use “340 Methods” to optimize the performance of every task from lifting and loading boxes to selecting a package from a shelf in the truck.

              UPS has also used handheld computer called Delivery Information Acquisition Device (DIAD) which can access wireless cell phone network. Drivers can know their task by handheld, the DIAD has a function which is automatically captures customers signatures.

 3) What strategic business objective do UPS information system address?

 The strategic business objective that UPS information system address were provided best customer services to the customers. Every year UPS spend more than $1 billion to maintain high level of customer services.

                UPS also focus on improve the efficiency of the performance. UPS invest and use a lot of systems or software to increase the company performance. For example, Package Tracking System, UPS using this system to monitor and re-route package throughout the delivery process. The UPS can always improve operational efficiency.

                The others strategic business objective is lower cost. UPS was keeping costs low to compete with competitors like FedEx. By using information system in UPS, it can reduce cost of operation.

4) What would happen if UPS’s information systems were not available?

 If UPS’s information systems were not available, UPS will face some problems. The process of providing information to customer will become slow. The customer cannot receive the information rapidly.

The operation of UPS will also become slow. Because UPS is using technology and information to monitor and control the operation when information system does not available, it will effect to the operation of the organization.

 Moreover, UPS need to spend more on cost. The cost to deliver the product and monitor the performance of driver will increase when information system does not occur.