UPS Competes Globally with Information Technology

1. What are the inputs, processing, and outputs of UPS’s package tracking system? There are several kinds of inputs for the UPS tracking system. Prominent among them are Scannable bar-coded label attached to a package, this has information about the sender and the delivery information with the estimated delivery date. Tracking number is user to track the location of the package. Customer signature, used to confirm delivery of the package. Delivery Information Acquisition Device (DIAD) used by the UPS drivers to know their map for the day, collect the signatures from the customers.

Through DIAD, UPS drivers automatically capture customers’ signatures along with pickup and delivery information.

This device can access through the cellular telephone network. Package tracking information is then transmitted to UPS’s computer network for storage and processing. From there, the information can be accessed worldwide to provide proof of delivery to the customer or to respond to customer queries. The time taken for the updated status available on web after the package is delivered is less than a minute.

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Customers or the UPS personnel can access the tracking information through out the time of pick up to delivery. Tracking data is available to the customers even after the package is delivered.

2. What technologies are used by UPS? How are these technologies related to UPS’s business model and business objectives? Various technologies are used by the UPS which increased their efficiency. Delivery Information Acquisition Device (DIADs), bar-code scanners, wireless communications networks, UPS’s central computer, desktop computers used by the UPS customer services personnel, storage technology for the package delivery data, UPS package tracking system, hosting a website ,fees calculating tools.

Through the use of DIADs, the UPS drivers automatically capture customer’s signature along with pickup and delivery information. UPS’s information systems use these data to track packages while they are being transported. Bar-code scanners are send to the distribution centers, at these centers using special software to determine the most efficient delivery route to the driver.

3. What would happen if these technologies were not available? Without the above mentioned technologies the UPS will not be as efficient as it is now, the organizational costs will increase rapidly. UPS estimates its delivery trucks saved 28 million miles and 3 million gallons of fuel in 2006 compared to 2005 as a result of using the special software in distribution centers. It will be practically impossible to give the estimated delivery time if the package tracking system is not available. UPS revenues might take a blow if these technologies are not available as the running costs of the organization do increase rapidly.

1. What kind of information and services does the UPS Web site provide for individuals, small businesses, and large businesses? List these services and write several paragraphs describing one of them, such as UPS Trade Direct or Automated Shipment Processing. Explain how you or your business would benefit from the service. UPS website provides several services like creating a shipment, scheduling a pick up, calculating the cost and ordering supplies through online. These services will help in saving lot of time and money for the customers. Automated Shipment Processing is the service provided by the UPS which benefits the customers to ship and track packages, calculate the rate, providing estimated delivery time and validating the destination addresses. By integrating these options into any organization , this will expedite processing and delivery, simplify and speed-up order processing, minimize costs and reduce paperwork and reduce risk of errors , provides the tracking of al the orders and provides the history od the orders as well.

2. Explain how the Web site helps UPS achieve some or all of the strategic business objectives we described earlier in this chapter. What would be the impact on UPS’s businesses this Web site were not available. UPS website helps in achieving the business objectives like ‘Order fulfillment process’ and ’transaction processing systems’. If the web site is not available the UPS will not be as successful and efficient as it is now. There will be lot of manual intervention if the website is not available. The online features like tracking, creating a shipment, calculating the costs or providing the delivery date will need to be provided by manually which will require lot of man power and the costs will increase proportionately.