CASE STUDY 1 : UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

What are the inputs, processing and outputs of UPS package tracking system?

The inputs for the UPS package tracking system are:-

1. detailed information about the sender, destination and shipping contained in the scannable barcode label attached to the package
2. the most efficient delivery route for each driver that is created through software, taking considerations of the weather & traffic conditions.

The processing of UPS package tracking system are :-

1. the transmition of the data from the label to UPS computer centre and later to the distribution centres near its final destinations,
2. the “340 Methods” for optimizing the performance of every task.
3. the downloading of the driver’s route into the Delivery Information Acquisition Device (DIAD), 
4. the transmition of UPS package tracking information to UPS computer network for storage. 
5. the scanning of the barcode at various points along the route and the data is fed into the central computer to keep track of the progress of shipment.

The outputs of UPS package tracking system are :-

1. the delivery information that can be assessed worldwide to provide proof of delivery to customers, through the UPS website or apps that can be downloaded by the customers.

What technologies are used by UPS?  

1. advanced information technology to create its package tracking system 
2. the web-based Post Sales Order Management System (OMS) to manage global service order and inventory. 
3. the UPS Supply Chain Solution service for other client companies to subscribe to, which uses UPS's existing systems and network infrastructure to handle delivery of the clients' products.

How are these technologies related to UPS business strategy?

1. UPS’s business strategy since its inception is to provide “best service and lowest rates”.  In terms of the delivery service, “best service” would entail the successful delivery of the package to the right destination in the shortest time possible.  Therefore UPS uses the advanced information technology to keep track of the shipping and ensuring the successful delivery of the package.
2. UPS also uses advanced information technology to create a set of standardized services  to be subscribed by other companies at a fraction of the costs if the companies were to create their own systems, therefore fulfilling UPS’s second business strategy of providing best service and “lowest rates”.  

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

1. UPS slogan : What can Brown do for you?  This slogan emphasizes UPS's ability to provide services to almost anyone anywhere.  The UPS information system ensures the slogan is achievable.
2. Supply Chain Strategy. UPS information system builds up a strong distribution network, in line with UPS's business strategy at becoming the supply chain integrator of choice in e-commerce.

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

1. tracking of package delivery would be done manually which will be exposed to human and mechanical errors.  
2. the delivery would be less efficient, taking more time and the possibility of the package delivered in an unacceptable condition, or not being delivered at all.
3. UPS may not be able to expand globally at the rate they are currently expanding.
4. UPS may not be able to offer the supply chain solution to other client companies.

End.