UPS competes globally with Information Technology

1. What are the inputs, processing and outputs of UPS's package tracking system? Answer: Input is any raw data from within organization or from its external environment. Processing involves set of processes that converts raw data into more meaningful form. Output is the processed information. The inputs, processing and outputs of UPS's package training system can be explained through following diagram.

y y y y

Customers Signature Pick up information Delivery Information Time card information

Processing in main computers in Mahwah, New Jersey, and Alpharetta

y y y y y

Track Packages Delivery routes Shipping rates Time-in transit Pick up scheduling

Input

Processing
Figure: UPS tracking System

Output

The inputs for the UPS tracking system include customer's signature, pick up information, delivery information, and time card information. This information is fed in handheld computer device called Delivery Information Acquisition Device (DIAD) that is transmitted to the cellular telephone network via truck's vehicle adapter. The processing is done in UPS's main computers, which is located in Mahwah, New Jersey, and Alpharetta, Georgia. This information are stored, classified and arranged so that the information can be assessed worldwide to provide proof delivery to customers. The outputs of the final processing include delivery routes checking, shipping rate calculation, time-in-transit determination, pickup scheduling and packages tracking. This information can be assessed by the Customer service representatives to check the status of any package and can also assessed by UPS customers from company's Web site using their own computers or wireless devices.

2. What technologies are used by UPS? How are these technologies related to UPS's business strategy? Answer: UPS uses various technologies for package distribution worldwide. To fulfill the promise of "best service and lower rates", it uses various information technologies, communicating devices and scanning devices. The technologies used by UPS include Delivery Information

Acquisition Device (DIAD), a network of computers, dedicated cellular telephone network, bar code scanning devices, and Graphical User Interface through its Web site. These technologies are core to the competitive advantage of UPS's business. These technologies have enabled the company to boost the customer service while keeping costs low and streamlining its overall operations. DIAD enables them to transfer information such as customers' signatures, pickup time, and delivery time digitally to the UPS computer network via cellular telephone network. Thus the use of IT has enabled to transmit the valuable data to the main server instantly. Moreover, all the contents are digital, hence, there is no requirement for paper works. The computer network has enabled them to process this information in three different parts of the country. And this information are accessible not only by the Customer Service representative but also the customers. UPS information system has enabled it to track packages while they are being transported. The result is an information system solution to the business objective of providing the high level service with low prices in the face of mounting competition. One of the most visible aspects of IT is that it enables its customers to track his/her package via UPS website using internet enabled computers or any wireless devices. Moreover, the customers can use UPS website to make payments and arrange shipments. Thus, IT has enabled UPS to be more competitive, efficient and profitable. UPS objective of "best service and lower rates" places emphasis on the customer satisfaction. The company's packaging system seems to be following the company's philosophy.

3. What problems do UPS's information systems solve? What happen if these systems were not available? The evident problem for any traditional tracking system was inability of customers to determine the actual rate, scheduling the pickup of the packages and finding out where the package has actually reached. Moreover, the paperwork was immense and the goods were delivered late because the flow of the information regarding the package was time consuming. Likewise, lots of packages were prone to being lost in the transit. But with the implementation of Information Technology not only the customer but the whole organization has benefited. It has changed the whole structure of how package distribution industries work. IT has enabled the customers to determine the cost of delivery, schedule when to pick up the packages, and more importantly track where the package actually is. The ability to track and schedule pick up has enabled its customers to send time sensitive documents from different part of the world to other corner of the world. This has virtually eliminated the possibility of lost of packages also. Moreover, the immense paper work, the time taken to transmit the information regarding the packages to the central administration has virtually declined to zero. UPS is able to quickly access the up-to-date information which has enabled its management to take quick and efficient decisions. IT has enabled them to reinvent themselves and growing. Moreover, it has enabled them to diversify their customer base. Their customers not only

include the regular public but also big organizations such as Birkenstock Footprint Sandals, Jockey International, and Toshiba America, whose logistics, freight forwarding, customer brokerage, mail services and supply chain are managed by UPS. If these systems were not available to UPS, it could not have delivered what it promised in a short span of time. The services would have been expensive and the growth of UPS would not have been possible.