Case Study 4
Interative Session : Technology
UPS Competes Globally with Information Technology
Question 1
What are the inputs, processing and outputs of UPS’s package tracking
system?
Answer
Inputs of UPS’s package
tracking system is scan bar-coded label attached to a package which contains
detailed information about the sender, the destination and when the package
should arrive.
The processing of UPS’s
package tracking system is before the package is picked up, information from the
“smart” label is transmitted to one of UPS computer centers in Mahwah, New
Jersey or Alpharetta, Georgia and sent to the distribution center nearest its
final destination.
The output of UPS’s
package tracking system is customers download and print their own labels using
special software provided by UPS or by accessing the UPS Web site.
Question 2
What technologies are used by UPS? How are these technologies related
to UPS’s business strategy?
Answer
UPS has used the
dispatchers in computer center to download the label data and use special
software to create the most efficient delivery route for each driver that
consider traffic, weather condition and the location of each step. By using the
software, UPS estimate it save 3 million fewer gallon of fuel of every year.
This technology related to UPS’s business strategy which is best services and
lowest rates.
Moreover, to
accomplish business strategy which UPS want to increase cost savings and
safety, UPS are train driver to use “340 Methods” to optimize the performance
of every task from lifting and loading boxes to selecting a package from a shelf
in the truck.
UPS has also used
handheld computer called Delivery Information Acquisition Device (DIAD) which
can access wireless cell phone network. Drivers can know their task by
handheld, the DIAD has a function which is automatically captures customers
signatures.
Question 3
What strategic business
objective do UPS information system address?
Answer
The strategic business objective
that UPS information system address were provided best customer services to the
customers. Every year UPS spend more than $1 billion to maintain high level of
customer services.
UPS also focus on
improve the efficiency of the performance. UPS invest and use a lot of systems
or software to increase the company performance. For example, Package Tracking
System, UPS using this system to monitor and re-route package throughout the
delivery process. The UPS can always improve operational efficiency.
The others
strategic business objective is lower cost. UPS was keeping costs low to
compete with competitors like FedEx. By using information system in UPS, it can
reduce cost of operation.
Question 4
What would happen if UPS’s information systems were not available?
Answer
If UPS’s information systems were
not available, UPS will face some problems. The process of providing
information to customer will become slow. The customer cannot receive the
information rapidly.
The operation of UPS will also become slow. Because UPS is using
technology and information to monitor and control the operation when
information system does not available, it will effect to the operation of the
organization.
Moreover, UPS need to spend more
on cost. The cost to deliver the product and monitor the performance of driver
will increase when information system does not occur.
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