What are the inputs, processing, and outputs of UPS’s tracking system?
One of the major inputs within the UPS tracking system is the information of the packages provided by the senders. This information primarily includes the details about the sender and recipient, location or the destination where the package is desired to be delivered, and labels embellished with the bar codes that actually facilitates prompt tracking of the packages. UPS also uses DIAD (Delivery Information Acquisition Device) to incorporate data. DIAD is actually used to capture signatures of the customer, as well as, delivery and pickup details related to the parcels. UPS has equipped all its drivers with these DIAD machines. A collection of this information through DIAD facilitates timely input and updates all the information while it also facilitates users to get instant delivery details about their packages.
Major processes of UPS include ‘Smart Labeling’ and ‘UPS Correspondence’. UPS employs smart labeling i.e. trackable barcodes on the packages. Information from these smart labels is easily transmitted to the computer systems of UPS. Another process at the UPS involves the efficiency of its correspondents at the UPS centers that tend to choose the most proficient route for their delivery trucks while considering the easiest accessibility to the location, suitability of weather conditions, and traffic density. These processes help UPS to organize the data in such a way that it can be easily tracked through user account, driver, and date. It also ensures that the parcels are efficiently delivered.
Outputs produced from these inputs and processes include a schedule for the delivery trucks including pickup and delivery timings. Truck drivers are also provided with the information regarding the most efficient routes to the recipients’ locations (Trkman et.al, 2015). Another output is the data storage at UPS data centers, which enables its customer service representatives to be highly responsive and assisting to customers against queries related to their parcels. This shows that inputs, processes and outputs not only helps UPS but also simplify the monitoring procedures for customers to stay connected with their parcels throughout the effective delivery process.
What technologies are used by UPS? How are these technologies related to UPS’s business model and business objectives?
UPS heavily invests in IT and developed an integrated portfolio of information technologies including barcode system, central data storage centers, wireless networking systems, parcel tracking systems, tracking software and computer networking. Its IT unit also developed web front-end and also uses API (Application Program Interface). UPS upholds a simple business strategy i.e. to offer the best service at the lowest price. UPS’ business objective is to enhance the efficiency of their delivery services while offering the best facilities to their valuable customers at the lowest possible costs. This business approach of UPS was the principal force that drives them to invest heavily in attaining efficient IT options. UPS relies on IT options realizing the fact that it can facilitate them achieving their business objective of maximum efficiency at lowest possible cost. For that reason, it analyzes several cost-related factors, for instance, the regular telephone calls made by UPS costs around $2 as compared to 10 cents that are charged for responding web queries. Considering the drastic difference in cost, UPS has adopted the API, which reduced the cost incredibly. The organization also undertakes the other IT alternatives in order to enhance efficiency, reduce cost and contribute towards their business goals.
What problems do UPS’s information systems solve? What would happen if these systems were not available?
UPS overcame problems through its operational excellence and by introducing new products, services and business model. Furthermore, it also worked towards resolving the issues of suppliers and customer intimacy. UPS also sustained its leadership and excellence in small-package delivery services, regardless of intense competition from U.S Postal System and FedEx by heavily investing in advanced IT systems. UPS operational excellence solves numerous problems, for instance, using DIAD enable UPS to capture the customers’ signature automatically by scanning parcels and uploading their status directly on UPS information systems. This basically annihilates the usage of paperwork throughout the delivery process. Similarly, this automated process saves thirty minutes every day. Likewise, drivers were given extensive training over ‘340 Methods’, which optimize their task performance ranging from loading and lifting of boxes to picking up a parcel from the truck’s shelf.
It also launched an innovative Post Sales Web-Based OMS (Order Management System), which facilitates global inventory and order management services for critical part (aerospace, high-tech electronics, and medical equipment). OMS enabled client companies (who shipped critical parts) to swiftly assess their inventory, determining the optimal delivery strategy and route, placing online orders, and tracking inventory from warehouse to end-users. Bar code devices periodically scan the shipping information through smart labels and send feedback about the parcels’ progress to UPS’ central computer systems. This resolves the issues of customer and supplier intimacy by empowering the customer service representative to check and monitor the delivery status of packages and efficiently responding to their queries and concerns. UPS’ information systems also enhanced its decision-making ability. For instance, UPS software helped drives determining the most proficient delivery route which saves its trucks to travel 28 million miles lesser while saving 3 million gallons of fuel annually. UPS exploits its ages of expertise to manage supply chain and logistics activities by initiating a ‘UPS Supply Chain Solution’ division for other business organizations. This put UPS a step ahead from its business competitors.
If these systems were not available, then UPS wouldn’t be capable of competing with other firms effectively. UPS would also be having high operational cost and lesser efficiency, which could have ultimately resulted in highly priced services. Moreover, these information systems and technological advancements offer better value to the customers as they are getting improved features, increased autonomy, and greater efficiency at reasonable prices (Ba & Nault, 2015).
MIS Answers
What kind of information and services does the Website provide for individuals, small businesses and large businesses? List these services.
The website of UPS is thorough and extensive with an enormous amount of information, which comprehensively fulfills the needs and requirements of all types of customers regarding UPS services, tracking, and shipment. UPS’ website is exceedingly user-friendly with easy and prompt web navigation options. Their website involves explanatory, interrogatory and responsive information that simultaneously facilitates individual and business clients. The web page displays seven major categories i.e. shipping, tracking, locations, freight, support, My UPS and UPS solutions. Each category incorporates relevant details for customers. Small and large business can get detailed information and facilities from these seven option; however, an individual client can take benefits by using My UPS, shipping, tracking, location and support options. The website also displays the promotional offers such as discounts e.g. save 40% with UPS on international shipping or additional benefits offered by the company e.g. enhance your home delivery experience by becoming a ‘UPS My Choice’ member.
The web page also incorporates several other options such as language change, login, signup, profile management, search and the UPS store, which directs the users to their online store as this incorporates printing, packaging, store services and small business services. Apart from that, the website also displays latest news and information related to UPS in order to keep its clients updated. It also has options such as create your own shipment, schedule cost, and time. Customers can also use schedule their pickup options that offer flexibility and empowerment to individual and business clients. Furthermore, it has Quick Links options, which helps you to access your account summary, payment, billing options, filing a claim, and getting a service guide for your particular national and international region (UPS, 2016).
Go to the Business Solution portions of the UPS website, Browse the UPS Business Solutions by category (such as shipment delivery returns or international trade) and write a description of all the services UPS provides for one of these categories. Explain how business would benefit from these services?
UPS business solutions is an extensive division that provides information related to all small and large business needs. The division is mainly categorized into three sections i.e. Industry Focus, Small Business, and International Trade. All three captions are further divided into the subdivisions. The first navigation under this title will lead you to find your desired business solution with respect to your industry. For instance, it includes industries like High-tech, Healthcare, Aerospace and Defense, Automotive, Manufacturing, Retail etc. Each of these industries has subdivisions, which offer extensive UPS service options. For example, the area of Healthcare has categories like Biotech & Pharmaceuticals and Equipment & Devices etc. Similarly, each of these subdivisions offers precise and specific solutions to your needs. For example, in Pharmaceutical and Biotech option, UPS offers the shipment, storage, distribution, management & monitoring, planning, scheduling, recovery, and spoilage prevention.
The Small Business section offers a complete business solution to small businesses ranging from initial startups to larger businesses. It comprises of four major options i.e. get started, help me grow, improve my consumer experience, and support system. Each of these categories involves options offered by UPS in these areas. Like for instance, Get Start-Up assist small enterprises understanding the shipping benefits with UPS, incorporating time-saving technologies, realizing the needs of having a shipping account, exploiting the competencies of your business and getting an expert advice at UPS. International Trade division includes six major categories i.e. Customs Brokerage, Technology & Tools, UPS World Ease, UPS Worldwide Freight Express Options and UPS Trade Direct. Custom Brokerage involves expertise and tools to assist managing global trade complexities. Tech & Tools offers you apparatuses that you need for international trading. Likewise, UPS Worldwide Express ensures the door to door delivery of your freight internationally and UPS World Ease consolidates numerous shipment destinations for you as a solo shipment.
Explain how the website helps UPS achieve some or all of the strategic business objectives we described earlier in this chapter. What would be the impact on UPS’s business if this website were not available?
I believe that this website of UPS is one of the most significant factors for its business. The websites incorporate all the bits and details related to their business, shipment, tracking, freight, location, offered services and business solutions. It does not only serve as the information source for the clients but also epitomize the persona of UPS as it is highly efficient, resourceful, well-organized and proficient. The options offered by UPS on its website help individual customers, both small and large business clients to get their desired information from this portal, develop their personalized account, schedule and create their customized shipments, monitor their payment and bills, comprehend about freight and interact with UPS support system. All these options are completely diverged to offer maximum efficiency to the UPS’ customers throughout their experiences with UPS; irrespective of the nature of transaction they made i.e. whether merely for a parcel delivery or for supply chain management of their business.
Easy navigation, high interaction, and immense information facilitates the relationship between UPS and its clients, and also resolve their concerns making them feel satisfied and connected. This encourages them to make more transactions with UPS. Considering piles of advantages that UPS automated information systems and websites bring to its business, the impact of their absence would be undoubtedly terrible. Currently, UPS heavily relies on its website for the reason that contemporary users want products and services at their fingertips. Moreover, technological advancements has also facilitated users to stay highly aware, interactive and connected with the business organization. Not having a website in this modern age would cause a severe setback to UPS as it is one of the most vital medium for operations, interaction, marketing and dissemination of information (Bozarth & Handfield, 2015).
References
Ba, S., & Nault, B. R. (2015) Emergent Themes in the Interface between Economics of Information Systems and Management of Technology. Retrieved on March 10, 2016
Bozarth, C. C., & Handfield, R. B (2015). Introduction to operations and supply chain management. Prentice Hall. Retrieved on March 10, 2016
Trkman, P., Budler, M., & Groznik, A (2015). A business model approach to supply chain management. Supply Chain Management: An International Journal, 20(6), 587-602. Retrieved on March 10, 2016
UPS (2016) Official Website. Retrieved From https://www.ups.com/?Site=Corporate&cookie=us_en_home&inputImgTag=&setCookie=yes on March 10, 2016
