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UPS case study analysis

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United Parcel Services

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UPS case study analysis

  1. 1. CASE STUDY ANALYSIS 20121072 Sandra Obiora 20121543 Dilara Rasulova 20121789 Mwangala Mulamata
  2. 2. ABOUT UPS • ‘UPS’ stands for United Parcel Service. • Founded 1907 after James Casey and Claude Ryan recognized the need for private messenger and delivery services. • By 1930, UPS extended its services to the East coast of the US. • By 1953 UPS resumed its air operations. • By 1993 UPS saw delivery increase at 11.5 million packages a day. • Between 2010 and current day, UPS has acquired more than 40 companies, and is a leader in freight, retail shipping, finance and trade services. 2
  3. 3. SUMMARY OF CASE STUDY • Its aim is “best service and lowest rates”. • Has over 400 000 employees. • Delivers 15.6 packages/ day. • 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 inspections on all parts. 3
  4. 4. Q.1: What are the inputs, processing, and outputs of UPS’s package tracking system? Inputs • Scannable barcode containing shipping information of: - Package labels - Package delivery progress sent to central computer. Processing • Based on the inputs, UPS can monitor and reroute packages automatically. • takes under 60 seconds from when driver checks in package location on DIAD for customer to see it. 4
  5. 5. Q 1: Continued Outputs • Efficient deliveries in terms of: - Time saved per delivery. - Costs saved - Customers can quickly track their packages. 5
  6. 6. 2: What technologies are used by UPS? How are these related to UPS’s business strategy? UPS’s technologies include • DIAD (Delivery Info. Acquisition Device). • Software for creating efficient delivery routes. • Label scanner, download, and print software. • Automated package tracking system. • UPS mobile app for smart phones. • Cisco system with tools for UPS customers to make shipment tracking and cost calculations. • Web based post sales order management system. 6
  7. 7. 2: What technologies are used by UPS? How are these related to UPS’s business strategy? According to UPS’s official website: The UPS vision is guided by four transformative strategies: • Deploying technology-enabled operations. • Providing unique and industry-specific customer solutions. • Expanding our global network. • Serving the needs of end consumers around the world. "Corporate Profile." UPS Investor Relations, n.d. Web. <http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol- homeprofile>. 7
  8. 8. 3: What Strategic business objectives do UPS’s information Systems address? UPS’s overall strategic aim is to: - Deliver the ‘Best service, at the lowest rates.’ • Strategic business objectives normally involve: - Saving cost - To improve service quality. - And Increasing level of output. • UPS info. Systems address these issues: • Saving cost by using the Special software: - Saves 28 million miles/ year. - Save 3 million of fuel/ year. 8
  9. 9. How much UPS really saves • With Gas in US. Being $2.74/ Gallon. If they save 3 000 000 gallons, they actually save $2.74 x 3 000 000 gallons = $8, 220, 000/ Year. • For Turkey it will be: $6.67 x 3 000 000 = $20, 010, 000/ year And when converted is 57, 978, 099 Turkish Lira 9
  10. 10. 4: What would happen if UPS’s information systems were not available? If UPS’s info systems were unavailable, the following will occur: • All round costs will increase. • Customer loyalty will decrease due to inefficient deliveries. • Their company image will get ruined. • UPS offices will be jam-packed with impatient customers. • They will lose customers to their competition. • Decreased productivity of staff and employees. (e.g. traffic situations.) • Will be overpowered by competitors and other airborne express such as FedEX, DHL who are starting to employ innovation and different information technologies. 10
  11. 11. 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 company image. • And the speed improves customer loyalty. 11
  12. 12. Bibliography • N.p., n.d. Web. <http://www.ups.com/content/corp/about/history/>. • "Corporate Profile." UPS Investor Relations, n.d. Web. <http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-homeprofile>. 12
  13. 13. ANY QUESTIONS OR CONTRIBUTIONS? 13
  14. 14. THANK YOU FOR LISTENING  14

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