HOMEWORK: UPS COMPLETE GLOBALLY WITH IT

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

Inputs:
Scannable Bar-Coded Labels : A tag of barcode is provided to the packages which
contains all the details about sender, receiver, and time of delivery. These labels are very
important when it comes to navigating through the various stages in transit to make sure that
it gets to the intended destination and recipient.
Customer-Entered Data: Customers enter the data on the shipment required through the
UPS website or through other software to obtain labels. It entails the identification of the
sender and the receiver, means of communication, and a detailed delivery instruction. It also
means the proper encoding and routing of the package from the start.
Real-Time Data from DIADs: Drivers input real-time information into Delivery Information
Acquisition Devices (DIADs) including the route, the status of packages, and customer’s
signatures. The DIADs update the system frequently so that the most recent data is being
incorporated into the process.
Environmental Data: Information about traffic situations and weather conditions is used to
improve the delivery schedule. This information helps UPS management in altering the
conditions that may affect the delivery time and efficiency.

Processing:
1. Transmission of Label Information to UPS Computer Centers: Data collected by
bar-coded labels is transmitted to UPS’ main data processing facilities and utilized in
controlling the transportation of packages.
2. Use of the ORION Routing Software to Create Efficient Delivery Routes: The
ORION software system takes delivery information to establish the best route routes
for the driver given the traffic conditions, adverse weather conditions, and priority in
deliveries.
3. Data Capture by DIADs for Delivery, Pickup, and Customer Signatures: Drivers
use DIADs to input real-time data on their delivery status, pickups, and customer
signatures during their routes.
4. Barcode Scanning at Various Points Along the Delivery Route: Barcodes are
scanned at several stages to give the status and location of the package as and
when they are scanned.
5. Storage and Processing of Tracking Data in UPS’s Central Computer System:
The details of tracking and shipment are recorded in the database of UPS thus
allowing real-time access and modification.
6. Integration of UPS Functions into Customer Websites for Real-Time Tracking
and Cost Calculations: UPS functions are implemented on customer websites,
which enables real-time tracking and cost estimates for customers, thus giving UPS
site access to tracking information that is convenient and fast.

Outputs:
Tracking Information: Tracking information can be accessed by customers on the UPS
website and mobile applications to know the location of their goods at any given time. There
is tracking info where customers can find out where their package is coming from and going
to, how long it will take to be delivered, and any other change in status. This ensures that
customers are informed and have confidence in the handling of their consignments. It also
has a notification feature through which customers can be notified at critical stages of the
delivery process.
Delivery Confirmation: Customers get a delivery confirmation report on hand in the DIAD
alongside digital signatures acquired from the customers. This proof of delivery is uploaded
to UPS's network, thereby making it easily accessible to customers instantly. It makes the
digital signature coupled with the correct delivery time and the notes by the driver possible to
verify the transaction delivered. It is useful when cases involving delivery disputes occur and
gives customer confidence when they are placing their order for the merchandise.
Optimized Delivery Routes: Drivers get the best routes and shortest distances in relation to
their journey, which leads to lesser amounts of time and money spent on their trips. It means
that the routes calculated by the ORION software are always flexible and only depend on the
current situation in the field, for instance, the traffic congestion, the new order, etc.
Accordingly, by ensuring that drivers follow the best routes or the most efficient road
networks, drivers will be able to deliver goods sooner and spend less time on the road, and
hence less on fuel. Maintaining service levels while pressing down operational costs and
especially reducing impacts on the environment is in fact the UPS’ strategic move.

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

Technologies used by UPS:

- ORION (On-road Integrated Optimization and Navigation):This special software creates
the most efficient for each driver by considering weather conditions, the traffic, and the
locations of each stop.
- DIAD (Delivery Information Acquisition Device):Customer can access a wireless
cellphone network to receive customer’s route and capture their signatures along with pickup
and delivery information. This data is transmitted to UPS’s central computer, which takes
less than 60 seconds from when a driver presses” complete” on the DIAD.
- Automated package tracking system:This system uses barcodes and scanning devices,
UPS tracks packages throughout the delivery process. This system enables real-time
updates, rerouting capabilities, and efficient management of delivery routes.
- UPS website and mobile Applications:It provides customers with an app and website to
access and track packages, check delivery routes, calculate shipping rates, determine time
in transit, print labels, and schedule a pickup.
- UPS Supply Chain Solutions: It provides a complete bundle at a fraction of what it would
cost to build their systems and infrastructure. These services include supply chain design
and management, freight forwarding, customs brokerage, mail services, multimodal
transportation, and financial services in addition to logistics services.

These technologies support UPS’s business strategy by:

- Efficiency and Cost Reduction: ORION software and DIADs optimize delivery routes,
saving fuel and time, aligning with maintaining low costs and high service levels.
- Customer Service: Real-time tracking and customer access to information via mobile
apps and websites enhance customer satisfaction and service quality.
- Integration and Customization: Providing tools for customers to embed UPS functions
into their own websites increases customer loyalty and convenience.
- Global Reach and Scalability: Advanced IT systems support UPS’s global operations,
enabling efficient management of a vast network and large volume of deliveries.

3. What business objectives do UPS’s information systems address?

- Operational Excellence: Streamlined processes and optimized delivery routes reduce

costs and improve efficiency.
- Customer and Supplier Intimacy: Enhanced tracking and real-time information availability
improve customer satisfaction and service responsiveness.
- Improved Decision Making: Data collection and analysis enable UPS to make informed
decisions regarding logistics, supply chain management, and customer service.
- New Products and Services: UPS Supply Chain Solutions division leverages UPS’s
expertise to offer logistics and supply chain services to other companies.
- Survival: In a highly competitive market, advanced IT systems ensure UPS remains
competitive and can adapt to changing market demands, such as the shift to e-commerce.

4. What would happen if UPS’s information systems were not available?

- Delays in Package Tracking: In the case of no automated package tracking system,

essential information about the location and status of packages is not easily accessible and
this is very crucial especially in emergency situations. Customers and employees would not
be able to get tracking information in the required time and in a more efficient way, causing
inconvenience.
- Increased Operational Costs: With ORION routing software, they consider factors such
as traffic patterns, weather conditions and so forth in determining the best ways to deliver
goods. Without this system, delivery routes would be less optimized, leading to higher fuel
and labor costs.
- Decreased Customer Satisfaction:Lack of real-time tracking and poor information
availability would lead to dissatisfaction and potentially loss of customers.
- Loss of Competitive Edge: The preclusion of these systems would limit UPS from
delivering high-end service at comparatively humble cost and thus UPS would struggle to
compete with rivals like FedEx and the U.S. Postal Service, potentially losing market share.
- Operational Disruptions: Manual processes would be slower and more error-prone,
affecting the overall efficiency and reliability of the delivery network. The general
performance of logistics and supply chain operations would be significantly affected, and
delays and mistakes would occur in the sorting and delivery of packages.