UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

About UPS

Customer First. People Led. Innovation Driven.

The story of UPS, the world's largest package delivery company, began more than a century ago with a $100 loan to jump start a tiny messenger service. How we evolved into a multi-billion-dollar global corporation reflects the history of modern transportation, international commerce, logistics and financial services. Today, UPS is customer first, people led, innovation driven. It's powered by more than 495,000 employees connecting more than 220 nations and territories across roads, rails, air, and ocean. Tomorrow, UPS will continue to lead the industry and connect the world, with a commitment to quality service and environmental sustainability.

UPS used the following technologies in pursuing their business strategies bases on Porter's Value Chain shown below (Recommendations):

- Computer Center (Data Center): This is the Data Center built by UPS that handles the processing and storage of all the global data that is feed into the tracking system. This help in the streamlining of their business operations where every UPS office in the world could connect the central database to track products that are transited, was picked up and or delivered at their respective offices. - Bar-coding technology

- The Barcode technology goes with their strategy in delivering packages at the fastest possible time. The barcode technology which allows dispatchers to scanned straight into the system, package details reduces the time dispatchers would have spent entering that data one after the other from the package into the computer.

- Delivery Information Acquisition Device (DIAD) - The DIAD also supported their business strategy of streamlining their business operations to provide best service to the customers. This is because the devices being connected to wide Area network of UPS via internet, helps them to collect pick up or delivery data in real time and updates the tracking system less than sixty seconds. With the use of special software, best possible routes are downloaded onto the DIAD which helps the drivers to use the efficient routes in delivering the packages, a strategy to cut operational cost.

- A Web-based Post Order Management System. Management of other businesses supply chain with its own Global delivery network technology, i.e. the web-based Post Order Management System, was another new product/business model that UPS introduced as a strategy to stay in competition by offering lowest rates for providing supply chain solutions as compared to those companies managing it themselves.

- UPS's Wide Area Network and Internet: UPS's wide area network helped in connect all their offices globally to connect to the centralized Data Center using Internet so that they can update the tracking system with live information and data for customers to also view in real time.

The strategic business objectives that UPS's information system address are:

- Increasing cost savings and safety

- Delivering packages at the shortest possible time

- Increasing company revenue by introducing new products and business models

- Updating customers in real time, progress of their packages

- Streamlining companies operations - Building a Global delivery network

discuss any FIVE (5) key challenges / problems that UPS would have faced if they had not implemented the above recommendations into an integrated Value Chain.