UPS has invested heavily in information systems technology making it business more efficient and customer orientated. It uses a vast number of technologies such as bar code scanning systems, wireless networks, large mainframes computers, handheld computers, the internet and a wide variety of software for tracking packages, calculating fees, maintaining customer accounts and managing logistics ensuring their business strategy is successful. An information system solution to business challenges providing a high level of service with low prices in the face of mounting competition. All the technologies mentioned above are all part of UPS winning business strategy to achieve its optimal goal/objectives. Most of the technologies are RFID that feed into the central computer ensuring that all stakeholders are kept informed about the delivery process and is inter twined with the supply change process of the organisation.
A brief explanation on how each technology works to attain UPS business strategy.
Bar code scanning system
• Is a device that is used to scan a package that is received by UPS a bar code is issued and attached to this packages with detailed information about the sender, destination and when the package will arrive to its intended destination all this information is store in the central computer.
• Information from the smart label is transmitted to the UPS computer centre and sent to the nearest distribution centre close to its final destination.
• Dispatchers at the various centres download the label data using their special software and determine an efficient way to get the package to the recipient.
• UPS embarked on an initiative to install sensors in their delivery vehicles to cut down on costs and they were able to save $30 million per driver.
• Is a handheld computer that is used by the drives that they use to log on each day that indicates all the information about the package that was picked up can be accessed worldwide from their computer network storage and processing providing proof of delivery.
• Customer representatives are able to check the status of any package from their desktop and respond to customers enquiries.
• Customers are also allowed to access information from the UPS website or mobile phones.
• Is another system that UPS invested in to allow customers to track and calculate costs of their shipments without visiting UPS site.
• Manages global service orders and inventory for critical parts.
• Companies are able to access their critical parts, place orders online and track part from warehouse to end user.
• Automated e-mail or fax informs clients of each delivery process and if there are any changes to flights carrying their parts.
Most of the technologies use wireless networks enabling data to be transmitted to the central mainframe computer ensuring high level of customer service at low cost. The high investment in this information technology has ensured UPS to be a leading enterprise in the world.
y provide real economic value to the business.