Name: Syukriah Binti Haji Abdul Kadir Jailani

Roll No: M20190077

Date: Thursday, 30th Jan 2020

Question No 1
What are the input, processing, and output of the UPS’s package tracking system?

Input:
The inputs include package information, customer signature, pickup, delivery, time-card
data, current location (while en route), and billing and customer clearance documentation.
Delivery Information Acquisition Device (DIAD) is used to capture all the information
about the package from the customer. Again, bar code devices are used throughout the
delivery process to collect useful information about the package.

UPS also collects information from its website. This website provides customers the
facility to input their package’s details (destination, origin, shipment date, weight, size
etc.), desired freight media (by air, by vehicle etc.) and freight service to determine
shipping rates and time in transit.

Processing:
Data collected from DIAD is uploaded to the UPS network, called UPSnet, for primary
storing. Then all the data are transmitted to a central computer and stored for retrieval.
Bar code equipment’s also send data about the package to the central computer for
immediate processing. Data are also reorganized so that they can be tracked by customer
account, date, driver and other criteria.

Output:
Output occurs when all these information is spread by the companies Intranet to the
management team, distribution centers, customer service centers, etc. Latest information
can also be found at the UPS’s official website (www.ups.com) from where the customers
can access the information (packages current location, arrival time and location, delay
time for bad weather conditions if occurs and other notices) they need. Cisco systems also
enable potential customers to track shipments from their own websites and get automatic
updates about their packages, rather than visiting the UPS site.
Question No 2
What technologies are used by UPS? How are these technologies related to UPS’s
business strategy?

Technologies include
handheld computers
(DIADs), barcode
scanning systems, wired
and
wireless communications
networks, desktop
computers, UPS’s central
computer (large
mainframe computers),
and storage technology
for the package delivery
data. UPS also
uses telecommunication
technologies for
transmitting data
through pagers and
cellular
phone networks. The
company uses in-house
software for tracking
packages, calculating
fees, maintaining
customer accounts and
managing logistics, as
well as software to
access
the World Wide Web.
UPS has used the same
strategy for over 90
years. Its strategy is to
provide the “best
service and lowest
rates.” One of the most
visible aspects of
technology is the
customer’s
ability to track his/her
package via the UPS Web
site. However,
technology also enables
data to seamlessly flow
throughout UPS and
helps streamline the
workflow at UPS. Thus,
the technology described
in the scenario enables
UPS to be more
competitive, efficient,
and profitable. The result
is an information system
solution to the business
challenge of
providing a high level of
service with low prices in
the face of mounting
competition
Case study 1: UPS
Competes Globally with
Information Technology
1. What are the inputs,
processing, and outputs
of UPS’s package
tracking system?
Inputs: The inputs
include package
information, customer
signature, pickup,
delivery,
time-card data, current
location (while en route),
and billing and customer
clearance
documentation.
Processing: The data are
transmitted to a central
computer and stored for
retrieval. Data
are also reorganized so
that they can be tracked
by customer account,
date, driver, and
other criteria.
Outputs: The outputs
include pickup and
delivery times, location
while en route, and
package recipient. The
outputs also include
various reports, such as
all packages for a
specific account or a
specific driver or route,
as well as summary
reports for management.
2. What technologies are
used by UPS? How are
these technologies
related to UPS’s
business strategy?
Technologies include
handheld computers
(DIADs), barcode
scanning systems, wired
and
wireless communications
networks, desktop
computers, UPS’s central
computer (large
mainframe computers),
and storage technology
for the package delivery
data. UPS also
uses telecommunication
technologies for
transmitting data
through pagers and
cellular
phone networks. The
company uses in-house
software for tracking
packages, calculating
fees, maintaining
customer accounts and
managing logistics, as
well as software to
access
the World Wide Web.
UPS has used the same
strategy for over 90
years. Its strategy is to
provide the “best
service and lowest
rates.” One of the most
visible aspects of
technology is the
customer’s
ability to track his/her
package via the UPS Web
site. However,
technology also enables
data to seamlessly flow
throughout UPS and
helps streamline the
workflow at UPS. Thus,
the technology described
in the scenario enables
UPS to be more
competitive, efficient,
and profitable. The result
is an information system
solution to the business
challenge of
providing a high level of
service with low prices in
the face of mounting
competition
Technologies include
handheld computers
(DIADs), barcode
scanning systems, wired
and
wireless communications
networks, desktop
computers, UPS’s central
computer (large
mainframe computers),
and storage technology
for the package delivery
data. UPS also
uses telecommunication
technologies for
transmitting data
through pagers and
cellular
phone networks. The
company uses in-house
software for tracking
packages, calculating
fees, maintaining
customer accounts and
managing logistics, as
well as software to
access
the World Wide Web.
UPS has used the same
strategy for over 90
years. Its strategy is to
provide the “best
service and lowest
rates.” One of the most
visible aspects of
technology is the
customer’s
ability to track his/her
package via the UPS Web
site. However,
technology also enables
data to seamlessly flow
throughout UPS and
helps streamline the
workflow at UPS. Thus,
the technology described
in the scenario enables
UPS to be more
competitive, efficient,
and profitable. The result
is an information system
solution to the business
challenge of
providing a high level of
service with low prices in
the face of mounting
competition
Some of UPS technologies
include the Delivery
Information Acquisition
Device, software
for mapping out fastest and
most efficient delivery
routes, the label download
and print
software, package tracking
system, and various UPS
mobile applications across
various
mobile operating systems.
UPS strives to achieve
many things, amongst
some they
work toward building their
global business, they offer
products to expand their
customers
access to global markets,
and they offer industry-
leading technology that
simplifies and
improves customers’
business process
Technologies used by UPS’s include handheld computers (DIADs), barcode-scanning
systems, wired and wireless communications networks, desktop computers, UPS’s central
computer (large mainframe computers), and storage technology for the package delivery
data. UPS also uses telecommunication technologies for transmitting data through pagers
and cellular phone networks. The company uses in-house software for tracking packages,
calculating fees, maintaining customer accounts and managing logistics, as well as
software to access the World Wide Web.

UPS has used the same strategy for over 90 years. Its strategy is to provide the “best
service and lowest rates.” One of the most visible aspects of technology is the customer’s
ability to track his/her package via the UPS Web site. However, technology also enables
data to seamlessly flow throughout UPS and helps streamline the workflow at UPS. Thus,
the technology described in the scenario enables UPS to be more competitive, efficient, and
profitable. The result is an information system solution to the business challenge of
providing a high level of service with low prices in the face of mounting competition.
Question No 3
What strategic business objectives do UPS’s information systems address?

Operational excellence:
UPS has maintained leadership in small-package delivery services despite stiff competition
from FedEx and the U.S. Portal System by investing heavily in advance information
technology.

New products, services, and business models:

In June 2009 UPS launched a new Web-based Post Sales Order Management System (OMS)
that 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 access their critical parts
inventory, determine the most optimal routing strategy to meet customer needs, place to
orders online, and track parts from the warehouse to the end user.
Customer and supplier intimacy:
Customers can download and print their own labels using special software provided by
UPS or by accessing the UPS Web site. UPS spends ore than $1 billion each year to maintain
a high level of customer service while keeping costs low and streamlining its overall
operations.

Improved decision making:

Special software creates the most efficient delivery route for each driver that considers
traffic, weather conditions and the location of each stop. 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. To further increase cost savings and safety, drivers are trained to use “340
Methods” developed by industrial engineers to optimize the performance of every task
from lifting and loading boxes to selecting a package from a shelf in the truck.

Competitive advantage:
UPS is leveraging its decades of expertise managing its own global delivery network to
manage logistics and supply chain activities for other companies. Its Supply Chain
Solutions division 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.
UPS invests heavily in information systems technology to make its business more efficient
and customer oriented. It uses an array of information technologies including barcode
scanning systems, wireless networks, large mainframe computers, handheld computers,
the Internet, ad many different pieces of software for tracking packages, calculating fees,
maintaining customer accounts, and managing logistics. You may want to highlight how
UPS has had to change and adapt to new technologies to remain competitive.

Question No 4
What would happen if UPS’s information systems were not available?

If UPS’s info systems were unavailable, the following will occur:

 All round costs will increase.
 Customer loyalty will decrease due to inefficient deliveries.
 Their company image will get ruined.
 UPS offices will be jam-packed with impatient customers.
 They will lose customers to their competitors such as FedEx.
 Decreased productivity of staff and employees (e.g. traffic situations.)
 Will be overpowered by competitors and other airborne express such as FedEx, DHL
who are starting to employ innovation and different information technologies.

Possibly, UPS might not be able to compete effectively without technology. If the
technology were not available, then UPS would, as it has through most of its history,
attempt as opposed to increasing the cost of sending packages.