By numbers, United Parcel Service, Inc. (UPS) which established in 1907 with starting capital, $100, is considered now as the world's largest package delivery company, UPS transports some 16 million packages and documents per business day throughout the US and to more than 200 countries and territories. Its delivery operations use a fleet of about 100,000 motor vehicles and about 600 aircraft. In addition to package delivery, the company offers services such as logistics and freight forwarding, through UPS Supply Chain Solutions, and less-than-truckload (LTL) freight transportation, through UPS Ground Freight. (LTL carriers combine freight from multiple shippers into a single truckload.), and it has a huge number of employees, about 425,300 Worldwide (358,000 in United States and 67,300 International). It serves 7.9 million customers daily (1.8 million pick-up, 6.1 million deliveries). The last number is the revenue that UPS posted the last year and it was $49.7 billion.
UPS’s problems and challenges:
UPS started its activity with no experience; the company established by two young teenagers, Jim Casey (19-year-old) and Claude Ryan (18-year-old).
UPS competitors are primarily in the Express Delivery Services industry, and UPS has strong competitors like FedEx, TNT, DHL, and Airborne express. Those competitors are trying to provide customers a high level technology with lower cost, and create a new quick safe delivery method.
UPS puts higher shipping costs on its franchisees because UPS manipulates the dimensional weight system used to calculate package size and weight for shipping.
UPS needed a more efficient way to track the shipments.
They face daily problems are not supposed to happen, like lost packages, damaged packages, and uncollected payments.
UPS has used the same strategy for over 90 years. Its strategy is to provide the “best service and lowest rates.”, and the second strategy is to spend a lot in highly developed and superior information technology.
Technologies include handheld computers (Delivery Information Acquisition Device “DIAD”), bar code scanners, and telecommunications for transmitting data, cellular phone networks, Internet, and computers.
• Enterprise system (ERP): UPS’s package Tracking system:
Inputs: The inputs include package information, customer signature, pickup, delivery, timecard data, current location, and billing and customer clearance documentation. And this considered as Transaction processing systems (TPS) serving the operational level.
Processing: The data are transmitted to a central computer and stored for retrieval. Data are also reorganized so that they can be tracked by customer account, date, driver, and other criteria. (This processing operation is considered as the Enterprise system (ERP) of UPS).
Outputs: The outputs include pickup and delivery times, location while en route, and package recipient. The outputs also include various reports, such as all packages for a specific account or a specific driver or route, as well as summary reports for management, so it is considered as Management Information System (MIS) serving the middle management level. And the flow of information through operational level and middle management makes the Executive support system (ESS) represented in senior management capable of keeping the leadership and taking most important decisions that affect the over all success of the business.
• Customer relationship management system (CRM): UPS’s Cisco system:
Cisco is the worldwide leader in data-networking equipment and software. UPS uses Cisco system to make its customers (firms like Adidas) able to follow the packages from their own web sites; they don’t have to log on the site of UPS, and they have created a system allow the...