UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY,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.. Its aim is “best service and lowest rates”

1. CASE STUDY- UPS
COMPETES GLOBALLY WITH
INFORMATION
TECHNOLOGY
SUBMITED BY:- GROUP ZEP2
BINI ANU BABU
JITHEESH J B

2. PICTURE OF THE CASE STUDY

3. CASE SUMMARY
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.

4. Cont.
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.

5. QUESTIONS & ANSWERS
Question 1: What are the inputs, processing, and outputs of UPS's package tracking system?
Inputs: The inputs are detailed information (customer information, package information), pickup, delivery,
current location, bar coded label, special software program by using the UPS Web site.
Processing: The all information are transmitted to a central computer, distribution centres, logistical
planning, (DIAD) program which was their drivers had been handheld delivery information Acquisition Device,
called UPS net, DIAD is collected from scan able label on packages, and changing schedules.
Outputs: UPS served tools that able to a customer which is Cisco Systems, to include UPS functions, such as
tracking and cost calculations, into their own Web sites. Destination (on the way), pick-up and delivery
schedule.

7. Question 2: What technologies are used by UPS? How are these technologies related to UPS's
business strategy?
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 centres, at these centres using special software to
determine the most efficient delivery route to the driver.

8. Question3: What strategic business objectives do UPS's information systems address?
UPS has a several business objectives.
Scan able Bar-code: One of the MIS business strategy objective. this system's objective is to use time more
efficiently and use low labour force in classify the packages destination and reduce human error in
classifications that will reduce the cost. It means by reducing cost they can keep up the lowest rate.
In delivering UPS uses special software that help drivers to take the most efficient routes to deliver the
package, plus this system considers the traffic and weather conditions.
DIAD: Every driver has device that has information about at automatically captures customer's signature
along pickup and delivering information from UPS's central computer. Every deliver person can access
information about the package and the customer can check the package it delivered or not. Also the
signature that from the delivery will be proof, sender can check it.
Cisco system: contains the customer can know about their packages information more detailed such as
shipping rates, determine time in transit, print labels, schedule a pickup, and track packages.
Those actions can get the high technology to the senders and it can reduce the time losing. They can check
their tracking and cost calculations and shipments cost without the UPS site.
OMS: Advanced delivering system that takes packages from the warehouse of companies and delivers their
fulfilment parts of equipment more quickly with in efficient routes.

9. Question 4: What would happen if UPS/s information systems were not available?
Customer/ Sender: If there were not available for information system, the customer will decrease faster.
Senders want to choose the good one which has high proof and information system and easy to understand
system.
Global delivering: For the another countries it will be difficult to get their packages. They will not know how
is going their packages. It means no information about their packages.
Saving Cost: Maybe it will be good to saving cost for the company. They do not need enough employees and
machines.
Time Losing: Those systems always give the information about their packages. For the company it is the one
of the advantage but if they has nothing then the company can lose their time.

10. 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.