Question

UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY United Parcel Service (UPS) started out in 1907 in a...

UPS COMPETES GLOBALLY WITH INFORMATION

TECHNOLOGY

United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim
Casey and Claude Ryan—two teenagers from Seattle with two bicycles and one
phone—promised the “best service and lowest rates.” UPS has used this formula successfully for
more than a century to become the world’s largest ground and air package-delivery company.
It’s a global enterprise with nearly 400,000 employees, 96,000 vehicles, and the world’s ninth
largest airline.
Today UPS delivers 16.3 million packages and documents each day in the United States
and more than 220 other countries and territories. The firm has been able to maintain leadership
in small-package delivery services despite stiff competition from FedEx and Airborne Express
by investing heavily in advanced information technology. UPS spends more than $1 billion each
year to maintain a high level of customer service while keeping costs low and streamlining its
overall operations.
It all starts with the scannable bar-coded label attached to a package, which contains
detailed information about the sender, the destination, and when the package should arrive.
Customers can download and print their own labels using special software provided by UPS or
by accessing the UPS Web site. Before the package is even picked up, information from the
“smart” label is transmitted to one of UPS’s computer centers in Mahwah, New Jersey, or
Alpharetta, Georgia and sent to the distribution center nearest its final destination.
Dispatchers at this center download the label data and use special software to create the
most efficient delivery route for each driver that considers traffic, weather conditions, and the
location of each stop. In 2009, UPS began installing sensors in its delivery vehicles that can
capture the truck’s speed and location, the number of times it’s placed in reverse and whether the
driver’s seat belt is buckled. At the end of each day, these data are uploaded to a UPS central
computer and analyzed. By combining GPS information and data from fuel-efficiency sensors
installed on more than 46,000 vehicles in 2011, UPS reduced fuel consumption by 8.4 million
gallons and cut 85 million miles off its routes. UPS estimates that saving only one daily mile
driven per driver saves the company $30 million.
The first thing a UPS driver picks up each day is a handheld computer called a Delivery
Information Acquisition Device (DIAD), which can access a wireless cell phone network. As
soon as the driver logs on, his or her day’s route is downloaded onto the handheld. The DIAD
also automatically captures customers’ signatures along with pickup and delivery information.
Package tracking information is then transmitted to UPS’s computer network for storage and
processing. From there, the information can be accessed worldwide to provide proof of delivery
to customers or to respond to customer queries. It usually takes less than 60 seconds from the
time a driver presses “complete” on a the DIAD for the new information to be available on the
Web.
Through its automated package tracking system, UPS can monitor and even re-route
packages throughout the delivery process. At various points along the route from sender to
receiver, bar code devices scan shipping information on the package label and feed data about
the progress of the package into the central computer. Customer service representatives are able
to check the status of any package from desktop computers linked to the central computers and
respond immediately to inquiries from customers. UPS customers can also access this
information from the company’s Web site using their own computers or mobile phones. UPS

now has mobile apps and a mobile Web site for iPhone, BlackBerry, and Android smartphone
users.
Anyone with a package to ship can access the UPS Web site to track packages, check
delivery routes, calculate shipping rates, determine time in transit, print labels, and schedule a
pickup. The data collected at the UPS Web site are transmitted to the UPS central computer and
then back to the customer after processing. UPS also provides tools that enable customers, such
Cisco Systems, to embed UPS functions, such as tracking and cost calculations, into their own
Web sites so that they can track shipments without visiting the UPS site.
A Web-based Post Sales Order Management System (OMS) manages global service
orders and inventory for critical parts fulfillment. The system enables high-tech electronics,
aerospace, medical equipment, and other companies anywhere in the world that ship critical parts
to quickly assess their critical parts inventory, determine the most optimal routing strategy to
meet customer needs, place orders online, and track parts from the warehouse to the end user.
An automated e-mail or fax feature keeps customers informed of each shipping milestone
and can provide notification of any changes to flight schedules for commercial airlines carrying
their parts. UPS is now leveraging its decades of expertise managing its own global delivery
network to manage logistics and supply chain activities for other companies. It created a UPS
Supply Chain Solutions division that provides a complete bundle of standardized services to
subscribing companies at a fraction of what it would cost to build their own systems and
infrastructure. These services include supply-chain design and management, freight forwarding,
customs brokerage, mail services, multimodal transportation, and financial services, in addition
to logistics services.
For example, UPS handles logistics for Lighting Science Group, the world’s leading
maker of advanced light products such as energy-efficient light-emitting diode (LED) lamps and
custom design lighting systems. The company has manufacturing operations in Satellite Beach,
Florida and China. UPS conducted a warehouse/distribution analysis to shape the manufacturer’s
distribution strategy, in which finished goods from China are brought to a UPS warehouse in
Fort Worth, Texas, for distribution. The UPS warehouse repackages finished goods, handles
returns and conducts daily cycle counts as well as annual inventory. Lighting Science uses UPS
Trade Management Services and UPS Customs Brokerage to help manage import and export
compliance to ensure timely, reliable delivery and reduce customs delays. UPS also helps
Lighting Science reduce customer inventory and improve order fulfillment.
UPS manages logistics and international shipping for Celaris, the world’s largest wireless
accessory vendor, selling mobile phone cases, headphones, screen protectors, and chargers.
Cellaris has nearly 1,000 franchises in the United States, Canada and the United Kingdom. The
company’s supply chain is complex, with products developed in Georgia, manufactured at more
than 25 locations in Asia and 10 locations in the U.S., warehoused in a Georgia distribution
center, and shipped to franchisees and customers worldwide. UPS redesigned Celaris’s
inbound/outbound supply chain and introduced new services to create a more efficient shipping
model.
UPS Buyer Consolidation for International Air Freight reduces complexity in dealing
with multiple international manufacturing sources. UPS Worldwide Express Freight guarantees
on-time service for critical freight pallet shipments and UPS Customs Brokerage enables single-
source clearance for multiple transportation modes. These changes have saved Celaris more than
5,000 hours and $500,000 annually, and the supply chain redesign alone has saved more than 15
percent on shipments.

Answer the following Questions. (Weight 50 points each)

1. Discuss and debate how did the information systems improve the performance of UPS?
2. What were the types of enterprise systems adopted by UPS? Explain.

Homework Answers

Answer #1

1. The information systems have improved the performance of UPS with increasing its efficiency with streamlined efforts and resources. The information technology has helped UPS to improve its customer services and also manage the supply chain and international operations of other clients. With help of technology, it has introduced transparency across its supply chain that has benefited the businesses that send or ship critical parts in business using UPS logistics services.

2. The types of enterprise systems adopted by UPS for offering services to its clients are supply chain management, customs brokerage, freight forwarding, mail services, multi modal transportation and financial services. The system has also post sales order management that helps the clients and customers to track their goods across the supply chain. UPS has supported its ERP system with information devices that help the clients and customers to participate in the logistics and transportation processes with calculation of minimum time and shortest routes, location of their goods, booking shipments and printing labels for pick up by UPS personnel that enables faster shipping and accurate information sharing between the stakeholders. The customers brokerage system, mail services and multi modal are helpful for businesses to be managed by UPS with their own network for shipping the parts, documents and goods across global locations.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
UPS is the world’s largest package delivery service.  Its core business, however, has been small package transportation...
UPS is the world’s largest package delivery service.  Its core business, however, has been small package transportation and delivery.  UPS expanded into new services including customized supply chain, information, and financial product solutions.  The challenge facing UPS is to reposition the company into a new marketspace it calls “synchronized commerce,” using a comprehensive integrated marketing communications (IMC) program.  The program includes a new logo, a retail presence created by its 3,300 UPS Stores, the “What Can Brown Do For You?” advertising campaign, a comprehensive...
Polis Grocers is an online grocery service that provides home delivery of groceries purchased via the...
Polis Grocers is an online grocery service that provides home delivery of groceries purchased via the Internet. Polis operates in the greater Chicago area and provides delivery to precertified customers. To be certified, the customer must have a user account with an established credit or charge line and rent a refrigerated unit to store delivered goods at their residence should they not be home at the time of delivery. To enter an order, the customer must log on to the...
A Customs Brokerage (ACB) is a high-volume third-party logistics provider (3PL), Non-Vessel Operating Common Carrier (NVOCC),...
A Customs Brokerage (ACB) is a high-volume third-party logistics provider (3PL), Non-Vessel Operating Common Carrier (NVOCC), and international freight forwarder that provides full-scale logistics services including end-to-end import and export forwarding, customs brokerage, direct consolidation services, local and national trucking, insurance and ware-housing. Services range from local delivery to large-scale multimodal project cargo. The company also maintains a fleet of trucks through its subsidiary Mantra Trucking, Inc. and through its network of carriers, transports and distributes Full Container Load (FCL)...
[The following information applies to the questions displayed below.] OFC Company of Kansas City prints business...
[The following information applies to the questions displayed below.] OFC Company of Kansas City prints business forms and other specialty paper products, such as writing paper, envelopes, note cards, and greeting cards. Its Business Services division offers inventory management services and desktop delivery on request. The division uses an activity-based costing (ABC) system. The budgeted usage of each activity cost driver and cost-driver rates for January 2019 for the Business Services division are: Activity Cost Driver Budgeted Activity Cost-Driver Rate...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s...
Business Problem-Solving Case Walmart and Amazon Duke It Out for E-Commerce Supremacy Walmart is the world’s largest and most successful retailer, with $487.5 billion in 2014 sales and nearly 11,000 stores worldwide, including more than 4,000 in the United States. Walmart has 2.2 million employees and ranks first on the Fortune 500 list of companies. Walmart had such a large and powerful selling machine that it really didn’t have any serious competitors—until now. Today, Walmart’s greatest threat is Amazon.com, often...
Logistics industry is one of the leading industries that uses the Information Technologies extensively. By using...
Logistics industry is one of the leading industries that uses the Information Technologies extensively. By using the latest technology gives the companies and the countries competitiveness. _____1____ are the software systems that meet the planning or operational needs of each of the companies in the supply chain and can work integrated with other related systems within and outside the company. The system contains three parts: Order Management System, Warehouse Management System, and Transportation Management System. ____2____ is the interface of...
The following statement is true is all respects: Organizations that make up the supply chain are...
The following statement is true is all respects: Organizations that make up the supply chain are “linked” together through physical, financial and information flows forming partnerships that add value to the customer experience. True False Flag this Question Question 3 1 pts Supply chain management is undergoing a level of transformation, not unlike other disciplines. Which of the selections below best represents this transformation. Business Logistics Physical Distribution Integrated Business Planning Its not transforming Flag this Question Question 4 1...
Entering the Indian Market Gotta Go Freight Forwarding is looking to develop a logistics agency network...
Entering the Indian Market Gotta Go Freight Forwarding is looking to develop a logistics agency network offering all modes of transportation inclusive of warehousing and distribution in India. Your marketing department has submitted their first report of findings. Confidential Report of Findings - India The overall logistics market in India which currently stands at about Rs 3,50,000 (exchange rate 1USD = 51.4100 Rs) crore (10 million) is likely to go up to Rs 7,00,000 crore in the next five years...
Membership Fee for Purchasing of goods. Consumers are not Subscribing for Goods, but actually they are subscribing for Services.
What do we have in common or not? About Costco :Membership Fee for Purchasing of goods. Consumers are not Subscribing for Goods, but actually they are subscribing for Services.They are selling at less margins to maintain Capped Margins.Maximum, on all products the average margin in an year is 11-12%For maintaining average margin, they have their own brands, where in that brands the margins are much higher than their average margin.These higher margins of own brands will be compensated with lower margins...
CASE STUDY - LG Electronics From its origins as the progenitor of South Korea’s electronics industry...
CASE STUDY - LG Electronics From its origins as the progenitor of South Korea’s electronics industry and then its first global exporter, LG Electronics has evolved to a respected global brand with manufacturing facilities in China, India, Mexico, Brazil, Poland, and Russia and a presence in 49 countries. Headquartered in Seoul, South Korea, the company has 84,000 employees in 112 locations around the world, including 81 subsidiaries. Perhaps best known today for its quality mobile phones, LG Electronics is also...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT