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Ups Competes Globally

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Submitted By Rozikan
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Management Information Systems
Rozenblat Oleg (oleg.rozenblat@euruni.edu)
Case study: UPS Competes globally with information technology
Question 1: What are the inputs, processing, and outputs of UPS’s package tracking system?
UPS is the world largest ground and air delivery service that operates worldwide. The main activity is about to receive or collect the parcel from sender and deliver it quickly and safely to the receiver. From information perspective, in order to provide the service UPS should receive the input information from sender such as details about sender and receiver (destination of the shipment, address) and customer preference on the service required such as collection/drop off, shipping times, etc. After all the required details are entered to the system, special software prints the label for each parcel which contains all the information. Then, UPS processes the information transmitting the label to the centralized computer system which generates routes how parcel can be dispatched, costing, timing and tracking opportunities. After, the output process include the service delivered and various reports to the customers, internal reports, log of queries and transactions, bills, claims supported by receiver signature. Ups also prefers to collect feedback on the service they deliver, so they can improve their service constantly.
Question 2: What technologies are used by UPS? How are these technologies related to UPS’s business strategy?
UPS uses various hardware and software technologies in delivering their service. Since establishment of the company, the business strategy of the company was to “provide the best service and lowest rates.” In order to reach that objective, UPS invests heavily into technologies to improve the service, reduce costs and be efficient. These technological advances are use of Delivery Information Acquisition Device, barcode scanning system, desktop computers, and UPS’s central computer, mobile devices, internet and internal software for warehousing, route creation, etc. Also they enable a tracking system for customers through a special UPS application or Web-site. The technological advancements used by UPS enables them to be competitive, efficient, providing the best service and being profitable.
Question 3: What strategic business objectives do UPS’s information systems address?
Use of information systems helps UPS to resolve difficult tasks instantly and stay sustainable with core business objectives and strategies. Advancement in technology and information systems helps to differentiate UPS from other competitors, by ensuring that best service is provided. Also, other businesses becoming to choose logistics companies such as UPS to outsource these tasks, manage supply-chain for them. Supply Chain Solutions division of UPS provides a complete bundle of standardized services to subscribers. This leads to comparative advantage to both sides of the service. However, the main focus of investment in technology and information systems is to bring operational excellence and enhance development of new services or products to maintain leading positions in the industry. As a focus may be used the excellence of service provided to the customer, by giving options how to use the service and improve decision making process based on statistical processing including different factors.
Question 4: What would happen if UPS’s information systems were not available?
Without Information systems, probably, the tasks and service that UPS provides could still be provided, but not as efficiently as it is now. Without Information systems, UPS would not be able to achieve the benefits it provides now to the customers. While all the processes in the business may stay the same, but the time needed to process and cost incurred for UPS service will be much higher. So, UPS would lose all the strategic objectives that makes the company successful. Also, some services such as tracking information may not be available without barcode scanning system and DIAD’s. So, non-existence of the Information systems will worsen the quality of service, increasing timings and costs of providing the service.

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