UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY

United Parcel Service (UPS), the world’s largest air and ground packagedistribution
company, started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan—
two teenagers from Seattle with two bicycles and one phone— promised the “best service and
lowest rates.” UPS has used this formula successfully for more than 90 years and is now the
world’s largest ground and air package-distribution company.

Today UPS delivers more than 13.6 million parcels and documents each day in the United
States and more than 200 other countries and territories. The firm has been able to maintain
leadership in small-package delivery services despite stiff competition from FedEx and Airborne
Express by investing heavily in advanced information technology. During the past decade, UPS
has poured

billions of dollars into technology and systems to boost customer service while keeping
costs low and streamlining its overall operations.

Using a handheld computer called a Delivery Information Acquisition Device (DIAD), a UPS
driver can automatically capture customers’ signatures along with pickup, delivery, and time-
card information. The driver then places the DIAD into the UPS truck’s vehicle adapter, an
information-transmitting device that is connected to the cellular telephone network. Package
tracking information is then transmitted to UPS’s computer network for storage and processing
in UPS’s main computers in Mahwah, New Jersey, and Alpharetta, Georgia. From there, the
information can be accessed worldwide to provide proof of delivery to customers or to respond
to customer queries.

Through its automated package tracking system, UPS can monitor packages throughout the
delivery process. At various points along the route from sender to receiver, bar-code devices
scan shipping information on the package label; the information is then fed into the central
computer. Customer service representatives can check the status of any package from desktop
computers linked to the central computers and are able to respond immediately to inquiries
from customers. UPS customers can also access this information from the company’s Web site
using their own computers or wireless devices such as pagers and cell phones.

Anyone with a package to ship can access the UPS Web site to track packages, check
delivery routes, calculate shipping rates, determine time in transit, and schedule a pickup.
Businesses anywhere can use the Web site to arrange UPS shipments and bill the shipments to
the company’s UPS account number or to a credit card. The data collected at the UPS Web site
are transmitted to the UPS central computer and then back to the customer after processing.
UPS also provides tools that enable customers such Cisco Systems to embed UPS functions,
such as tracking and cost calculations, into their own Web sites so that they can track
shipments without visiting the UPS site.

A capability called UPS Campus Ship allows employees in multiple offices of a business to
process and ship from their computers and have shipping procedures controlled by a central
administrator set up by the business. Morris, Schneider and Prior LLC, a top law firm serving the
financial services industry, uses this capability to track and control shipping costs. This firm is
constantly sending time-sensitive documents from three different locations to clients
throughout the United States. UPS tools automate the allocation and reporting of this firm’s
shipping costs and even itemize and detail shipping expenses for each client.

Information technology helps UPS reinvent itself and keep growing. UPS is now leveraging
its decades of expertise managing its own global delivery network to manage logistics and
supply chain management for other companies. It created a UPS Supply Chain Solutions division
that provides a complete bundle of standardized services to subscribing companies at a fraction
of what it would cost to build their own systems and infrastructure. These services include
supply chain design and management, freight forwarding, customs brokerage, mail services,
multimodal transportation, and financial services, in addition to logistics services. Birkenstock
Footprint Sandals is one of many companies benefiting from these services.

Birkenstock’s German plants pack shoes in crates that are barcoded with their U.S.
destination. UPS contracts with ocean carriers in Rotterdam to transport the shoe crates across
the Atlantic to New Jersey ports instead of routing them through the Panama Canal to
Birkenstock’s California warehouses. UPS trucks whisk each incoming shipment to a UPS
distribution hub and, within hours, to 3,000 different retailers. By handing this work over to
UPS, Birkenstock has cut the time to get its shoes to stores by half. Along the way, UPS uses
barcode scanning to keep track of every shipment until the merchant signs off on it. UPS also
handles Internet orders for Jockey International, laptop repairs for Toshiba America, and X-ray
machine installation in Europe for Philips Medical Systems.

Source: Dean Foust, “Big Brown’s New Bag,” and “Online Extra: UPS’s Eskew on ‘the Next
Logical Step,’ ” BusinessWeek, July 19, 2004; Galen Gruman, “UPS vs. FedEx: Head-to-Head on
Wireless ” and “New Technologies Hit Mainstream,” CIO Magazine, June 1, 2004; “Paper Trail,”

RoundUPS, Fall 2004; and Todd R.Weiss, “UPS Delivers New Package Checkin System for
Customers,” Computerworld, April 9, 2003.

To Think About:

1. What are the inputs, processing, and outputs of UPS’s package tracking system?
2. What technologies are used?
 3. How are these technologies related to UPS’s business strategy?
4. How do UPS’s systems provide value for the company and its customers?
5. What would happen if these technologies were not available?

What are the inputs?

Client's signature

Name and adress of the sender

Name and adress of the receiver

number of the packege (for trcking)

kind of package (fragile, electronics, clothing etc …)

package's weight

package's volume

date and hour of package’s picking (planning)

date and hour of the package's delivering (planning)

delivering data (yes or no, exact time etc …)

barcode (to paste on the package)

What are the process or traitement:

route calculation

transport time calculation

cost calculation

tracking of the package

What are the outputs:

- resultas of the differents calculation above

localisation of the package

facuration
 2. Technologies used by UPS :

DIAD (the device of the UPS driver)

computer (for customers and for UPS)

phone (for customers and UPS)

website (for customer)

barcode reader (for UPS)

payment system (for UPS)

operational research software (route calculation, optimization of cost, …)

mapping software (localisation

2. Technologies used by UPS :

DIAD (the device of the UPS driver)

computer (for customers and for UPS)

phone (for customers and UPS)

web-site (for customer)

barcode reader (for UPS)

payment system (for UPS)

operational research software (route calculation, optimization of cost, …)

mapping software (localisation)

3. Problems solved

optimization and reduction of distribution costs

better client's relation

reduction of delivery's delays

redution of polution
logistics problems (for UPS and big customer like ADIDAS)

supply chains softare solution

risk management

Without that, we could face an increase in the delivery costs or delivery's delays. Problems
of logistics for the companies that use UPS software solutions.

> vitamin D:

Overall, UPS’s investment in information technology has enabled the company to better
track and manage packages, provide real-time information to customers, and streamline its
operations. By offering a range of online tools, UPS has also made it easier for businesses
and individuals to ship packages and manage shipping costs. These advancements have
helped UPS maintain its position as a leader in the package delivery industry.

> vitamin D:

Overall, UPS’s use of information technology has enabled the company to expand beyond
its traditional delivery services and into the realm of supply chain management. Its
creation of the UPS Supply Chain Solutions division has allowed it to offer a wide range of
services to companies looking to streamline their logistics and reduce costs. By leveraging
its existing infrastructure and expertise, UPS is able to provide these services at a fraction
of what it would cost these companies to build their own systems. The use of barcode
scanning and other tracking technologies also ensures that every shipment is accounted for
and delivered in a timely manner, further enhancing UPS’s reputation as a reliable logistics
partner.

> vitamin D:

1. The inputs of UPS’s package tracking system include package information (tracking
number, destination, sender, delivery address, etc.), scanning devices for tracking and
updating package location, and communication devices for delivering alerts and updates.
The processing involves the use of logistics algorithms and software to optimize package
routing, schedules, and delivery. The outputs are tracking information that customers can
access through UPS’s website and mobile app, delivery confirmations, and updates on
package location and status.
2. Technologies used include barcode scanning, GPS tracking, handheld computers,
wireless networks, logistics software, and cloud computing.

3. UPS’s business strategy is focused on logistics optimization, customer service, and

sustainability. The company prioritizes efficiency in package handling and delivery to
reduce costs and improve delivery times. Technology plays a vital role in achieving these
goals, allowing UPS to track and manage packages more effectively and provide customers
with timely updates and support.

4. UPS’s package tracking system provides value for the company by streamlining
operations, reducing delivery errors, and improving customer satisfaction. Customers
benefit from the system by being able to track their packages in real-time, receive
notifications of delivery status and expected delivery times, and access customer support
to resolve any issues.

6. Without these technologies, UPS’s ability to efficiently deliver packages would

be severely impacted. The company would have a harder time tracking
packages, managing logistics, and communicating with customers regarding
package status and delivery times. This could lead to decreased efficiency,
increased delivery errors, lower customer satisfaction, and ultimately, lost
revenue.

The information systems planning process proceeds in which order?

- Organization mission
- organization strategic plan
- IS strategic plan
- New IT architecture
Which of the following is not part of the typical IS operational plan?
The organizational mission
Evaluating the benefits of IT projects projects is more complex than evaluating their
costs for all of the following reasons except?
Benefits tend to be more tangible than costs
A companys IT application portfolio is
A list of application to be added or modified
A companys IT architecture includes all of the following except?
The members of the IT staff
Which of the following statements about determinnig the costs of benefits of IT
investments is false?
Benefits are hard to quantify because they are tangible
Which of the following is not an advantage of the buy option for acquiring IS
applications?
Few types of off the shelf software are available, thus limiting confusion
Which of the following are disadvantages of the buy option for acquiring IS applications?
All of the above
Which of the following systems acquisition methods saves the company's time, enables
the company to select software that has been used for similar problems in other
organizations, and allows the company to try out the software?
Buy option
Which of the following systems acquisition methods can result in a company's acquiring
software that is controlled by another company, may be difficult to enhance or modify,
and may not support the desired business processes?
Buy option
Which of the following systems acquisition methods requires staff to systematically go
through every step in the development process and has a lower probability of missing
important user requirements?
systems development life cycle
Which of the following systems acquisition methods is time consuming, costly, and may
produce excessive documentation?
Systems development life cycle

__ is a method of delivering software in which a vendor hosts the applications and

customers access these applications over the internet
Software as a service
Which of the following statements is false?
Companies that purchase open source software cannot modify it
Place the stages of the systems development life cycle in order
- Investigation
- analysis
- design
- programming/testing
- implementation
- operation/maintenance
The ___ that changes are made in the systems development life cycle, the ___
expensive these changes become
sooner, less
___ feasibility determines if the project is an acceptable financial risk and if the
organization can afford the expense and time needed to complete the project
economic
____ feasibility addresses the human issues of an information systems project
Behavioral
___ feasibility concerns a firms policies and politics, power structures, and business
relationships
Organizational
Which of the following is not a part of systems analysis?
identifying the technical specifications of the solution
In the traditional systems development life cycle, users?
Provide information requirements
The deliverable of the systems design stage is
technical system specification
Systems design answers the question?
How will the information system resolve the business problem?
When users ask for added functionality during a systems development project, this is
called?
scope creep
Which of the following statements about scope creep is true?
Because scope creep is expensive, successful project managers limit it
In the ___ stage of the systems development life cycle, the design specifications are
translated into computer code
programming
___ conversion is the riskiest type of conversion process
Direct
A firm shuts down its old COBOL legacy system and immediatley starts up its new
Peoplesoft ERP system. This process is called ___ conversion
Direct
A frim implemens a new information system in one of its plants, assesses the new
systems performance, and then implements the new system in its other plants. This is
an example of ___ conversion
Pilot
As systems age, maintenance costs ____
increase
Which of the following systems acquisition methods helps clarify user requirements,
promotes genuine user participation, and may produce part of the final system?
Prototyping
Which of the following systems acquisition methods may encourage inadequate
problem analysis, is not practical with large numbers of users, and may result in a
company's purchasing a lower-quality system?
Prototyping
When systems are created rapidly, without a formal development methodology?
Testing and documentation may be inadequate
As an MIS analyst, you have decided to use a prototyping methodology for a small, web
based design project. What is the order of steps that you will follow in the project?
- Identify user requirements
- Develop the prototype
- revise and enhance the prototype
The ___ approach to systems development is a group based tool for collecting use
requirements
joint application design
Which of the following is not an advantage of the joint application design approach to
systems development?
It involves fewer users in the development
Agile development
Delivers functionality in rapid interactions
___ is a software development methodology that delivers functionality in rapid iterations,
usually measured in weeks
Agile development
Object oriented development
Focuses on the processes that must be modeled to perform that tsk
Which of the following systems acquisition methods may eventually require
maintenance assistance from the IT department, can produce inadequate
documentation, and might result in a company's acquiring a system with inadequate
interfaces to existing systems?
End user development
Which of the following is the most difficult and crucial tsk in evaluating a vendor and a
software package?
determining the evaluation criteria
A ___ is sent to potential vendors inviting them to describe their product and how it
would meet the firms needs
Request for proposal
___ specify how work is to be divided between the company and its vendors
service level agreements
Jennifer is the owner of a start-up boutique that specializes in hard-to-find dress sizes
for women. She has been keeping her financial books by using Excel and by hand. She
thinks it's time to buy an accounting package. What question does she need to answer
first?
What is the problem the accounting package must address
Jennifer is the owner of a start-up boutique that specializes in hard-to-find dress sizes
for women. She has been keeping her financial books by using Excel and by hand. She
researched available accounting packages for a business like hers and has decided on
Boutique Accounting.
What is the best way for Jennifer to implement Boutique Accounting?
Direct
Anna works in the sales organization of a mid-size company. The company is
evaluating whether it should replace its existing sales support system. At what stage of
the SDLC should Anna expect to participate?
systems analysis
Ryan works for a small consulting company. They want to do a better job of tracking
their clients and the jobs they have bid on and either won or lost. There are no
processes in place right now, and all users (consultants and managers) have different
ideas. What is the best systems development approach for Ryan's company?
JAD
Anna works in the sales organization of a mid-size company. The company decided to
purchase Sales SME that is offered as a SaaS. What would you expect to see in a SLA
with the vendors?
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.

Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.

Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.

Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.
Without that, we could face to an increase of the delivery costs or delivery's delays.
Problems of logistics for the companies that use UPS software solutions.