Compeating with It: Ups Case

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  • Topic: Supply chain management, Customer service, Customer
  • Pages : 26 (5764 words )
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  • Published : December 9, 2012
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Competing with IT: The UPS Case
Nabil Alghalith, Ph.D., Truman State University Kirksville, MO INTRODUCTION:
UPS United Parcel Service Inc. is an express carrier, package delivery company and a global provider of specialized transportation and logistic services. Over the course of more than 90 years, the Company has expanded from a small regional parcel delivery service into a global company. UPS delivers packages each business day for 1.8 million shipping customers to six million consignees. The Company’s primary business is the time-definite delivery of packages and documents throughout the United States and in over 200 other countries and territories. UPS is a leader in adopting e-commerce enabled applications that are specialized and not available for commercial sale. With the introduction of the Internet, new services like UPS online tools integrated with IBM, and many service applications are available by its logistics group at its site www.e-logistics.ups.com & www.upslogistics.com .UPS, the world’s largest package delivery and distribution company and a leading global provider of specialized transportation and logistics services. The company was founded on August 28, 1907 at Seattle, Washington. The world headquarters was moved to Atlanta, Georgia USA. Over the past 93 years, UPS has expanded its small regional parcel delivery service into a global company. It delivers packages each business day for 1.8 million shipping customers to six million consignees.

In 1999, company’s revenue was $27.1 Billion with delivery volume of 3.28 billion packages and documents and daily delivery volume of 12.9 million packages and documents, 2.2 million packages and documents were delivered by Air Delivery. UPS primary business is the time-definite delivery of packages and documents throughout the United States and in over 200 other countries and territories, there were 344,000 employees Worldwide (308,000 USA; 36,000 International). It has established a vast and reliable global transportation infrastructure; developed a comprehensive, competitive and guaranteed portfolio of services and consistently support these services with advanced technology. UPS provide logistics services, including integrated supply chain management, for major companies worldwide. It is the industry leader in the delivery of goods purchased over the Internet. The “UPS.COM” has 21 million hits per day - including an average of 2 million daily on-line requests and there were 1,713 operating facilities (hubs and centers).

Delivery Fleet:







149,000 vehicles
231 UPS Jet Aircraft Fleet.
344 Chartered Aircraft.
Daily Flight Segments:
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Domestic: 995
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International: 559
Airports Served:
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Domestic: 391
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International: 219

Business Model
UPS falls under the category of infrastructure service provider for their business model because they fit the three main criteria of developing network components, developing packaged software, and providing infrastructure services. The UPS Data Center, DIAD, UPS Hub Technology, and UPS Package Flow Technology show how UPS creates and packages technology-based products, services, and solutions. UPS has developed an integrated global IT network that synchronizes global commerce by coordinating the flow of goods, information and funds. It all begins with the UPS Data Center. Shipping and tracking 13.6 million packages a day involves the processing of an incredible amount of information. Due to this, UPS has created the world’s largest DB2 database to help track all those packages. Every time a customer signs on to MyUPS.com to track a package, they’re not only accessing the world’s largest DB2 database, but one that’s gathering the information they requested at mind-boggling speeds. UPS takes all the information stored in the DB2 database, as well as information from other corporate functions like sales, marketing, and finance, and stores it in its data warehouse, one of the largest Oracle...
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