UPS Study Case

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UNITED PARCEL SERVICE
CASE STUDY
BY GROUP 5
Agneta Prihastuti
Riva Awaluddin
Regan MN
Nurul Aini
Background History
Case Study Analysis
Infographich
Conclusion
What is UPS?
United Parcel Service (UPS) is an American
multinational package delivery company and a provider
of supply chain management solutions. The global
logistics company is headquartered in the U.S. city
of Sandy Springs, Georgia, which is a part of the Greater
Atlanta metropolitan area.
James E. Casey
Born
March 29, 1888
Pickhandle
Gulch, Nevada
Died
June 6,
1983 (aged 95)
Atlanta, Georgia
Occupation
Founded
American
Messenger
Company
in Seattle,
Washington, the
predecessor
to United Parcel
Service
Net worth
At time of death
$100,000,000
“best service and lowest rates”
STARTED OUT IN 1907
SUMMARY ABOUT UPS
• Founded 1907 after James Casey and Claude Ryan recognized the
need for private messenger and delivery services.
• Between 2010 and current day, UPS has acquired more than 40
companies, and is a leader in freight, retail shipping, finance and trade
services.
• Have a Tag Line “best service and lowest rates”.
• UPS Has more over 400.000 employees.
• Delivered more than one million packages/day
• FedEX and other air borne express count as main competition.
CASE STUDY QUESTIONS
1. What are the inputs, processing,
and outputs of UPS’s package tracking
system?
2. What technologies does UPS use?
How are these technologies related
to UPS’s business strategy?
3. What strategic business objectives
do UPS’s information systems
address?
4. What would happen if UPS’s
information systems were not
available?
 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
 Outputs
 Efficient deliveries in terms of:
 Time saved per delivery
 Costs saved
 Customers can quickly track their packages
The Technologies used by UPS are:
DIAD
BARCODE SCANNER
GPS TRACKING DEVICE
WIRELESS
COMMUNICATION
CENTRALIZED DATABASE
ERP SOLUTION
WEB SERVICE
Enterprise
resource
planning
(ERP)
is
business
Web
based
post
sales
order
management
A
GPS
Tracker
a
device
that
uses
Barcode
Scanner
is
a
device
that
uses
a laser
DIAD
((Delivery
Info
Acquisition
Device)
Itthe
isone
A
Centralized
Database
has
all
its
data
on
Wireless Communication
process
management
software
that
allows
an
system
and
also
for
UPS
customers
to
make
Global
Positioning
device
to
determine
the
or
other
technology
to
collect
and
interpret
an
hand
handheld
computer.
The
driver
place.
In
centralized
database
as
all
the
data
It is an important device to work at UPS. It
organization
tocaptures
use
a system
ofof or
integrated
shipment
tracking
and
cost
calculations
precise
location
of
a
vehicle,
person,
other
barcodes
on
costumer
product,
shipping
electronically
information
about
reside
on
one
place
so
problem
bottle
neck
helps the driver and the central unit to
applications
toincluding
manage
the
business
andas
asset
to
which
it
is
attached
and
record
the
labels,
and
many
others
each
package,
the
time
of
delivery
can
occur,
and
data
availability
is
not
efficient
communicate at any point while transferring
automate
many
back
office
functions
related
to
position
of
the
asset
at
regular
intervals
and
even
using
the
signature
of
the
person
in
distributed
database
package
technology,
receiving
theservices
packageand human resources
The Technologies used by UPS are:
How these technology related to UPS 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
UPS’s overall strategic aim is to:
Deliver the
“Best service, at the lowest rates”
UPS Strategic business objectives:
With Technology
UPS Information Systems address these issues:
Save around 3 million
of fuel/year
If UPS’s information systems were unavailable, the following will occur:
 All round costs will increase
 Customer loyalty will decrease
 UPS company image will get ruined
 UPS offices will be jam-packed with impatient customers
 They will lose customers to their competitors
 Decreased productivity of staff and employees
 Will be overpowered by competitors and other airborne express such as FedEX, DHL who are starting to employ innovation and
different information technologies
CONCLUSION

UPS’s strategic aim "best service and lowest rates”

Its information Technologies have a direct relationship to its efficiency

We learn that “Efficiency to be the least input for the most output level”

A lot of cost is saved through its fast information technology system

Information Technology System usage improves their company image

And the Information System improves customer loyalty
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