UPS Case Study Mark Charleston Dave Donahue Shawn

UPS Case Study Mark Charleston Dave Donahue Shawn Wagner

History of UPS • Started in Seattle in 1907 • Worlds largest air and ground distribution company • Between 1986 -1996 they invested $11 billion in information technologies • Delivers 13. 6 million packages a day sent by 1. 8 million shippers to 7 million consignees • International revenues of 27 billion dollars

Present • • • UPS employs 4, 700 tech. employees Has two data centers in New Jersey and Georgia Uses 14 different mainframes Has 125, 000 personal computers Has 6, 100 running servers Daily uses 80, 000 DIADS (Delivery Information Acquisition Device) • Website averages 145 million hits and 16 million page views per business day • Averages 10 million tracking requests per business day

UPS Online Tools • Tracking – Both shipper and recipient of package can track it directly from UPS website • Rates and Services Selection – Allows customer to estimate the cost of sending a package • Time in Transit – Can be used to estimate ground transportation • Address Validation – Validates the address and zip code to which the package is to be delivered • Signature Tracking – Digital signature that provides proof of delivery (DIAD used for this)

IT Tracking • At various points throughout the delivery bar codes are scanned and information is fed into the central computer • Drivers use the device called DIAD (Delivery Information Acquisition Device) to get customer signature, pickup, delivery and time-card information. • DIAD is placed into trucks adapter and information is sent to UPS’s computer network for processing • This information can then be accessed worldwide to provide proof of delivery

E-Commerce • UPS wanted to establish tighter linkages with customers • They developed IT tools, like API, to be imbedded into customers applications • API (application program interface) allows companies to access information from UPS’s tracking system directly • UPS Document Exchange – Allows firms to transfer large electronic files in a secure encrypted environment, with real time tracking and confirmation of delivery. • UPS e-Logistics – Provides a complete menu of “behind the scenes” services, such as warehousing, inventory management, order fulfillment (pick, pack and ship), shipping and delivery, management reporting, returns management, customer care and telephone support. Primarily for dotcom marketing and service companies

IT Investment • UPS has IT Steering Committee, consisting of 4 senior executives • They are in charge in ensuring technology direction, which includes determining investment priorities • 4 key areas were: customer information management, customer relationship management, package management, product management