CASE STUDY ANALYSIS

20121072 Sandra Obiora 20121543 Dilara Rasulova20121789 Mwangala Mulamata

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ABOUT UPS • ‘UPS’ stands for United Parcel Service.• Founded 1907 after James Casey and Claude Ryan recognized

the need for private messenger and delivery services.• By 1930, UPS extended its services to the East coast of the

US.• By 1953 UPS resumed its air operations.• By 1993 UPS saw delivery increase at 11.5 million packages a

day.• Between 2010 and current day, UPS has acquired more than

40 companies, and is a leader in freight, retail shipping, finance and trade services.

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SUMMARY OF CASE STUDY• Its aim is “best service and

lowest rates”.• Has over 400 000 employees.• Delivers 15.6 packages/ day.• FedEX and other air borne express

count as main competition.• UPS spends over $1 b/ year to

maintain high level customer service.

• Uses DIAD, Automated package tracking, functional websites, traffic trackers, Web based post sales post technologies among others.

• Now leverages its logistics expertise for other companies.

• Also focus on medical supplies, aerospace, high tech equipment deliveries.

• Runs quality inspections on all parts.

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Q.1: What are the inputs, processing, and outputs of UPS’s package tracking system?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.

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Q 1: ContinuedOutputs• Efficient deliveries in

terms of:- Time saved per delivery.- Costs saved - Customers can quickly

track their packages.

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2: What technologies are used by UPS? How are these related to UPS’s business strategy?

UPS’s technologies include• DIAD (Delivery Info.

Acquisition Device).• Software for creating

efficient delivery routes.• Label scanner, download,

and print software. • Automated package

tracking system.

• UPS mobile app for smart phones.• Cisco system with

tools for UPS customers to make shipment tracking and cost calculations.• Web based post sales

order management system.

2: What technologies are used by UPS? How are these related to UPS’s 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.

"Corporate Profile." UPS Investor Relations, n.d. Web. <http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-homeprofile>.

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3: What Strategic business objectives do UPS’s information Systems address?

UPS’s overall strategic aim is to: - Deliver the ‘Best service, at the lowest rates.’

• Strategic business objectives normally involve: - Saving cost- To improve service quality.- And Increasing level of

output.

• UPS info. Systems address these issues:• Saving cost by using the

Special software:- Saves 28 million miles/

year.- Save 3 million of fuel/

year.

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How much UPS really saves • With Gas in US. Being $2.74/

Gallon.If they save 3 000 000 gallons, they actually save $2.74 x 3 000 000 gallons

= $8, 220, 000/ Year.• For Turkey it will be:

$6.67 x 3 000 000 = $20, 010, 000/ yearAnd when converted is

57, 978, 099 Turkish Lira

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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 competition.

• 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.

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Conclusion • UPS’s strategic aim "best service and lowest rates”.• Its information Technologies have a direct relationship to

its efficiency.• We understand efficiency to be the least input for the

most output level.• A lot of cost is saved through its fast information

technology system.• Its usage improves their company image.• And the speed improves customer loyalty.

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Bibliography• N.p., n.d. Web. <http://www.ups.com/content/corp/about/history/>. • "Corporate Profile." UPS Investor Relations, n.d. Web.

<http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-homeprofile>.

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