From this case study, we learn that UPS as an enterprise has its own cutting-edge networked systems that empower it to retain costs low and streamline its overall operations. The inputs of UPS’s package system are customers’ information such as names, address, dates, phone numbers, and weights. Kenneth Laudon and Jane Laudon claim “it all starts with the scannable-bar coded label which is attached to a package, which contains detailed information about the sender, the destination of the package, the recipient, 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 website” (Laudon & Laudon, 2011). This case study also shows that before the package is picked up, the data from the scannable bar coded 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. This information is processed using special software to create the outputs such as efficient delivery route for each driver that considers traffic, weather condition, and the location of each stop.
The UPS has spent a great deal of money investing heavily in advanced information technology. According to the UPS website “UPS has implemented several tools and procedures, called Package Flow Technologies, to optimize delivery routes. PFT includes a suite of hardware and software designed, in part, to help drivers plan the most effective route - before a package is even loaded into a delivery vehicle” (UPS Pressroom, 2009). UPS has also revolutionized its delivery system when it established and installed the leading Delivery Information Acquisition Device (DIAD). The DIAD is the most comprehensive tracking device in the delivery industry, providing UPS service providers with data gathering and transmission technologies that increases operational efficiencies and enables customers to track their packages in real time. This information is transmitted via cell phone towers from the package trucks to UPS networks. Kenneth Laudon and Jane Laudon assert that in June 2009, UPS launched a new Web-based Post-Sales Order Management System (OMS) that manages global service orders and inventory for critical fulfillment. That system enables high-tech electronics, aerospace, medical equipment, and other companies anywhere around the globe 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 (Laudon & Laudon, 2011). This case study also shows UPS useseither an automated email or fax feature to keep customers well informed of each shipping milestone and provide notification of any change to flight schedules for commercial airlines carrying their shipments.
One of the the UPS business strategies is to maintain a high levelof customer service while keeping operational costs low and streamline its overall operations. UPS using these advanced technologies has helped it to maintain leadership in small-package delivery industry. Technology has played a large role in UPS’s ability to expand and grow to serve globally in more than 200 countries and territories. UPS relies on several technologies to gain a competitive advantage against rival companies. According to Kenneth and Jane Laudon, “UPS estimates its delivery trucks save 28 million miles and burn 3 million fewer gallons of fuel each year as a result of using this technology” (Laudon & Laudon, 2011). These technologies have helped UPS to provide tools to its customers to ship their packages, check delivery routes, calculating shipping rates, determine time in transit, print labels, schedule a pickup, and track packages. All these can be done without visiting UPS site when the data collected at the UPS Web site are transmitted to the UPS central computer and then back to the customer after processing.
There are three strategic business objectives that UPS’s information systems address. First is to cut down the operational costs. According to the study, UPS has managed to save 28 million miles by their truck using advanced information technology annually (reduce the number of miles driven). As a result of advanced information technology use, UPS’s trucks burn 3 million fewer gallons of fuel every year (reduce energy/fuel consuption). The use of advaced information technology guarantees UPS to save some dollars. The other business objective is to increase productivity. According to UPS Web site, “the use of DIAD also eliminates the use of 84 million sheets of paper, saving 7,308 trees per year” (UPS Pressroom, 2009). The use of UPS’s information system makes it easier to the company to run its operations. For instance, with the help of special software, dispatchers at UPS distribution center create the most efficient delivery route for each driver that considers traffic, weather condtions, and the location of each stop. The last objective in my view is to increase awareness to the customers and public. With the help of advanced information technology, customers are able to utilize UPS service without visiting the UPS store or site. Customers can track their packages, check delivery routes, calculating shipping rates, determine time in transit, print labels, and schedule a pickup online.
If UPS’s information systems were not available operational costs could be higher, productivity could be low, the flow of customers looking for information of their packages to UPS sites could be high, million gallons of fuel could be burnt, millions of miles could be driven, and million sheet of papers could be wasted.

References

Laudon, K., & Laudon, J. (2011). Management Information Systems: Managing The Digital Firm 12th Ed. Prentice Hall.
UPS Pressroom. (2009). Pressroom: UPS. Retrieved from United Parcel Service (UPS) Web site: http://www.pressroom.ups.com/Fact+Sheets/ci.UPS+Uses+Technology+and+Operational+Efficiencies+to+Reduce+Fuel+Consumption+and+Emissions.print