UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY
- 1. UPS COMPETES GLOBALLY WITH INFORMATIONTECHNOLOGY SUBMITTED BY, TOM K THOMAS GOKUL S DAS M.B.A - VIDYUT
- 2. SUMMARY INTRODUCTION United Parcel Service (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. Its aim is “best service and lowest rates”. Has over 400000 employees Delivers 15.6 packages a day 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.
- 3. FedEX and other air borne express count as main competition. UPS spends over $1 b/year to maintain high level customer service Uses DIAD, Automated package tracking, functional websites, traffic trackers, web based post sales post technologies among others. Now leverages its logistics expertise for other companies. Also focus on medical supplies, aerospace, high tech equipment deliveries. Runs quality inspection on all parts.
- 4. QUESTIONS AND ANSWERS 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.
- 5. 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.
- 6. 3.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
- 7. CONCLUSION UPS’s strategic aim “best service and lowest rates”. Its information technologies have a direct relationship to its efficiency. We understand efficiency to be the least input for the most output level. A lot of cost is saved through its fast information technology system. Its usage improves their competitive image. The speed improves customer loyalty.