UPS Case Study

CHAPTER 1                          : INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY

INTERACTIVE SESSION   : TECHNOLOGY

ARTICLE                                : UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

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

Input :- capture raw data from organization or external environment. In this issue the input are when the UPS workers scan shipping information on the package label and feed data about the progress of the package by using bar code device into the central computer

Processing :- Convert raw data into meaningful form. By using UPS Information System all raw data from bar code scan can be processed and organized to produce into meaningful information such as delivery route of packages, time in transit and schedule of pickup

Output :- Transferred process information to people or activities that used it. Customers service representatives are able to check the status of any package from desktop computers linked to the central computers and respond immediately to inquiries from customers. UPS customers can also access this information from the company web site using their own computers or mobile phones. 

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

     strategy?

Technology can be divided into two form, software and hardware.

Software :-  a. Special software for label printing

                      b. UPS Web Site Domain

                       c.  Web-based; Post Sales Order Management System

                       d. UPS Supply Chain Solution

Hardware :- a. Delivery Information Acquisition Device (DIAD)

                        b. Scannable bar-coded label 

                       c. Fax machine

                        d. High end computer

This technology play an essential part to smoothen the daily operation of UPS Parcel Service where it help arrange all important data of parcel systematically. The data of parcel or packaging such as name of the receiver, weight of parcel, type of parcel and so on.              

3. What strategic business objectives do UPS’s information system address?

     a) To maintain a high level of customer service while keeping costs low

     b) Streamlining its overall operations.

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

a)  Operational failure :- UPS cannot achieve the efficiency to attain higher profitability with lower      

     cost. Currently by using information system UPS can save its delivery trucks about 28 million miles 

     and burn 3 million fewer gallons of fuel each year. It also cannot achieve better productivity of UPS

     driver trucks without the DIAD device.

b)  UPS cannot expand their business models :- Without information system UPS cannot build the

      suitable software application that support with mobile applications and mobile web site such as

      I-Phone, Blackberry and Android

c)  Customer And Supplier Intimacy ; Serving customer poorly, lead to customer dissatisfaction which    

     decrease revenue and profits. For example without proper Information System, UPS were not able to

     track the status of parcel or packaging and inform back to their customer.

d) Poor Decision Making :- Without the information system, the UPS driver or dispatch may not able to 

     send the parcel by using the best route (short mile). This eventually will lead to poor response time.

    

e) Competitive Advantage :- UPS may be out thrown from their business activity by its rival such as

     FedEx and Airbone Express. In addition UPS may not able to response to the customer in a real time.

 f) Survival :- Information System is play a crucial role for company in 21^st Century to survived, without it

    UPS will collapse like other giant company such as Borders “One a giant became a weakling on its

    kness”