Case Study on UPS

MIS 205, Section 06

17^th February, 2009

Prepared For

Mirza Ferdous (MzF)

Prepared By

M Zahid Hossain

ID 081370030

Section: 06

Spring, 2009

Question 01: What are the inputs, processing, and outputs of UPS’s package tracking system?

Answer:

Inputs:

All Data received and captured by DIAD and UPS’s computer are the inputs of UPS’s package tracking system. These include:

1. Customers’ signatures
2. Customer information
3. Pickup, delivery, and time-card information
4. Product information

Processing:

DIAD capture and receive the information of products, delivery and customers. This information is filtered and processed into the UPS truck’s vehicle adapter, an information-transmitting device that is connected to the cellular telephone network. Package tracking information is then transmitted to UPS’s computer network for storage and processing in UPS’s main computers in Mahwah, NewJersey, and Alpharetta. Georgia. From there, the information can be accessed worldwide to provide proof of delivery to customers or to respond to customer queries. UPS monitor packages throughout the delivery process by its automated package tracking system. At various points along the route from sender to receiver, barcode devices scan shipping information on the package label; the information is then fed into the central computer.

DIAD ^{capture product, customer delivery data & filtered process} Customer store

Outputs:

Customer service representatives check the status of any package from desktop computers linked to the central computers and are able to respond immediately to inquiries from customers. These inquiries are the outputs. These can be accessed from UPS website by desktop computer, laptop or cellular phone. These outputs include:

• Package tracking information
• Delivery information
• Track packages
• Check delivery routes
• Calculate shipping rates
• Determine time in transit
• Schedule a pickup.

Question 02: What technologies are used by UPS?

How are these technologies related to UPS’s business strategy?

Answer:

UPS uses many technologies, from those important technologies are as follows:

• DIAD:

Delivery Information Acquisition Device, It is the UPS driver. It can automatically capture customers’ signatures along with pickup, delivery, and time-card information.

• Truck’s vehicle adapter:

An information-transmitting device that is connected to the cellular telephone network

• Cellular telephone network:

To connect DIAD, vehicle adaptor and central computer and to transmit data from each of these, UPS use cellular telephone network.

• Custom built software:

It is used for operation research and mapping technology to optimize the way packages are loaded and delivered. By using this software UPS has cut the distance and delivers 14 million small packages each day.

• Central Computer:

UPS use central computer to receive the data transmitted from DIAD, cellular phone network, to storage data and to generate data for worldwide server.

• Website:

To give the customer opportunity of monitoring the delivery process and order UPS using website.

These technologies enable UPS to have complete bundle of standardized services to subscribe other companies at a fraction of what it would cost to build their own systems and infrastructure.

As a result, UPS is really providing best service at lowest rate according to its promise. Moreover it saves lots of time and distance. In addition to that it has maximized its profit.

Question 03: What problems do UPS’s information systems solve?

What would happen if these systems were not available?

Answer:

UPS’s information systems have solved following problems:

• Make the process automated:

By using DIAD, cellular telephone network, custom built software it has made most of its processes automated. It is also using automated package tracking system.

• Labor reduce:

Information system has reduced their labor costs in many sectors like customer service, user tracking, monitoring the delivery process, generating the details of the product, capturing the customer data, data transferring

• Maximize profit and operation:

By using custom built software has saved 100 millions miles each year. Besides its parent business, it is managing its own global delivery network and supply chain management for other companies. These services include supply-chain design and management, freight forwarding, customs brokerage, mail services, multimodal transportation, and financial services, in addition to logistics services. As a result, both its profit and operation have increased.

Moreover UPS has solved following problems:

• Save time
• Shorten Distance
• Better Customer service
• Extend business

If these systems were not unavailable, the problems UPS have solved remained as problems.

• They could not continue their business properly, as it would take a lot of time to deliver the products
• Would not be able to manage so many customers’ data.
• They could not provide package tracking information, so they would lose the customers reliability.
• Could not perform as much as operation they are doing now
• It would be totally impossible for them to extend their business and provide their services to other companies like Adidas America.
• As a result it could not keep it promise that “best service and lowest rates.”