CASE STUDY
ANALYSIS
20121072 Sandra Obiora
20121543 Dilara Rasulova
20121789 Mwangala Mulamata
ABOUT UPS
• ‘UPS’ stands for United Parcel Service.
• Founded 1907 after James Casey and Claude Ryan recognized the
need for private messenger and delivery services.
• By 1930, UPS extended its services to the East coast of the US.
• By 1953 UPS resumed its air operations.
• By 1993 UPS saw delivery increase at 11.5 million packages a day.
• Between 2010 and current day, UPS has acquired more than 40
companies, and is a leader in freight, retail shipping, finance and
trade services.
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SUMMARY OF CASE STUDY
• Its aim is “best service and lowest • Now leverages its logistics expertise
rates”. for other companies.
• Has over 400 000 employees. • Also focus on medical supplies,
aerospace, high tech equipment
• Delivers 15.6 packages/ day. deliveries.
• FedEX and other air borne express • Runs quality inspections on all parts.
count as main competition.
• UPS spends over $1 b/ year to
maintain high level customer
service.
• Uses DIAD, Automated package
tracking, functional websites, traffic
trackers, Web based post sales post
technologies among others.
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Q.1: What are the inputs, processing, and
outputs of UPS’s package tracking system?
Inputs Processing
• Scannable barcode containing • Based on the inputs, UPS can
shipping information of: monitor and reroute packages
automatically.
- Package labels
• takes under 60 seconds from
- Package delivery progress when driver checks in package
sent to central computer. location on DIAD for customer
to see it.
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Q 1: Continued
Outputs
• Efficient deliveries in terms of:
- Time saved per delivery.
- Costs saved
- Customers can quickly track
their packages.
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2: What technologies are used by UPS? How
are these related to UPS’s business strategy?
UPS’s technologies include • UPS mobile app for smart
• DIAD (Delivery Info. phones.
Acquisition Device). • Cisco system with tools for
• Software for creating efficient UPS customers to make
delivery routes. shipment tracking and cost
calculations.
• Label scanner, download, and
print software. • Web based post sales order
management system.
• Automated package tracking
system.
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2: What technologies are used by UPS? How
are these related to UPS’s business strategy?
According to UPS’s official website:
The UPS vision is guided by four transformative strategies:
• Deploying technology-enabled operations.
• Providing unique and industry-specific customer solutions.
• Expanding our global network.
• Serving the needs of end consumers around the world.
"Corporate Profile." UPS Investor Relations, n.d. Web. <http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-
homeprofile>.
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3: What Strategic business objectives do
UPS’s information Systems address?
UPS’s overall strategic aim is • UPS info. Systems address
to: these issues:
- Deliver the ‘Best service, at • Saving cost by using the
the lowest rates.’ Special software:
- Saves 28 million miles/ year.
• Strategic business objectives - Save 3 million of fuel/ year.
normally involve:
- Saving cost
- To improve service quality.
- And Increasing level of
output.
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How much UPS really saves
• With Gas in US. Being $2.74/ Gallon.
If they save 3 000 000 gallons, they
actually save
$2.74 x 3 000 000 gallons
= $8, 220, 000/ Year.
• For Turkey it will be:
$6.67 x 3 000 000 = $20, 010, 000/ year
And when converted is
57, 978, 099 Turkish Lira
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4: What would happen if UPS’s information
systems were not available?
If UPS’s info systems were • Decreased productivity of staff
unavailable, the following will and employees. (e.g. traffic
occur: situations.)
• All round costs will increase. • Will be overpowered by
• Customer loyalty will decrease competitors and other
due to inefficient deliveries. airborne express such as
FedEX, DHL who are starting to
• Their company image will get employ innovation and
ruined. different information
technologies.
• UPS offices will be jam-packed
with impatient customers.
• They will lose customers to their
competition.
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Conclusion
• UPS’s strategic aim "best service and lowest rates”.
• Its information Technologies have a direct relationship to its
efficiency.
• We understand efficiency to be the least input for the most output
level.
• A lot of cost is saved through its fast information technology
system.
• Its usage improves their company image.
• And the speed improves customer loyalty.
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Bibliography
• N.p., n.d. Web. <http://www.ups.com/content/corp/about/history/>.
• "Corporate Profile." UPS Investor Relations, n.d. Web.
<http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-homeprofile>.
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ANY QUESTIONS OR CONTRIBUTIONS?
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THANK YOU FOR LISTENING
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