UPS uses various technologies like DIAD devices, automated package tracking systems, and mobile apps to efficiently route packages and provide customers real-time tracking. These systems help UPS achieve strategic objectives like lowering costs through route optimization and improving customer service. Without these information systems, UPS would not be able to efficiently deliver over 15 million packages per day, costs would increase, and customer satisfaction would decline, putting UPS at a competitive disadvantage.

1. CASE STUDY
ANALYSIS
20121072 Sandra Obiora
20121543 Dilara Rasulova
20121789 Mwangala Mulamata

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.
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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.
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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.
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5. Q 1: Continued
Outputs
• Efficient deliveries in terms of:
- Time saved per delivery.
- Costs saved
- Customers can quickly track
their packages.
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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.
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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>.
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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.
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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
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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.
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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.
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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>.
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13. ANY QUESTIONS OR CONTRIBUTIONS?
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14. THANK YOU FOR LISTENING 
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