Ups Information System

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Case summary:
UPS has created its own information system with Delivery Information Acquisition Device (DIAD) and Web-based Post-Sales Order Management System (OMS) globally by using developed information technology. These special systems help the company to reduce the cost of transaction greatly. By building its efficient order information management system, UPS can make optimal routing strategy, place orders online, and track shipments to meet customer needs. These information systems guarantee the possibility of two-day delivery nationwide as well as lower warehousing and inventory costs for the company.

Questions:
1. What are the inputs, processing and outputs of UPS’s package tracking system? Inputs: the inputs include package information, customer signatures, pickups, delivery and timecard information, and locations on each route. Processing: in the process of transactions, the data is transmitted to the information center and stored for retrieval. During the whole process, the data of shipped packages is available to be checked by drivers and tracked by customers. Outputs: mostly the same data as the inputs, including pickups, delivery times, locations of routes and package recipients. In addition, the outputs also include calculations of shipping rates to enable UPS customers to embed UPS functions, such as cost calculations, to their own websites. 2. What technologies are used by UPS? How are these technologies related to UPS’s business strategy? Technologies include handheld computers (DIAD), barcode scanning systems, wired and wireless communication networks, desktop computers, UPS’s mainframe computers, and storage technology for the package delivery data. UPS uses in-house software for tracking packages, calculating cost, maintaining customer accounts and managing logistics, as well as software to access to the World Wide Web. The strategy of UPS is “ best service and lowest rate”. These technologies allow customers to track their packages via...
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