Output: Output occurs when all these information is spread by the company’s Intranet to the management team, distribution centers, customer service centers, etc. Latest information can also be found at the UPS’s official website () from where the customers can access the information (package’s current location, arrival time and location, delay time for bad weather conditions if occurs and other notices) they need. Cisco systems also enable potential customers to track shipments from their own websites and get automatic updates about their packages, rather than visiting theUPS site.
2. What technologies are used by UPS? How are these technologies related to UPS's strategy?
UPS uses Cisco Systems to track and calculate costs of the packages. It also uses GPS systems to track shipments. It built up a strong IT network and database in order to collect and track data for every single package. The company spends more than $1 billion into technology and systems to keep a high level of customer service. Use of scan-able barcode attached with every single package has reduced the time and labor to find the useful information about it. Bar Code Readers immediately delivers information to the central computer so that every customer can assure the safety of their package. Its other technologies includes handheld computers (DIADs), bar-code scanners, wired and wireless communications networks, Intranet, desktop computers, central computer, storage technology and many different pieces of software to maintain customer accounts, manage online feedback, queries etc.
Using all these technology, UPS saves money and time helping the packages arrives faster to the customer. It can also provide rich customer service by responding immediately to the customer queries because it has all the latest information from its efficiently built IT system and technology. Thus UPS is keeping its promise “best service and lowest rates” successfully for more than 90 years.
3. What problems do UPS's information systems solve? What would happen if these systems were not available?
UPS information system provides solution for different categories of customers. As the Information system is connected to the internet, individual customers can access easily to the UPS website at anytime from anywhere to ship and track their package. They get faster response of their queries from the UPS customer center. They also receive their bill faster, because everything is generated automatically by the system with no time.
Business clients can make the shipping order online. They receive their invoice electronically; generated by the system without any mistake. UPS information system, integrated with CISCO systems also enables them to receive automatic updates of their package into their own websites without visiting the UPS site.
Again, the information system helps UPS saving money and time by providing information to managers and workers. It provides useful information to the UPS delivery and pick-up van drivers about the vehicle routes and traffics updates. So travel time becomes less and wrong turns are never made; saving the company millions of dollars in fuel costs each year. Because of information system, now management team is always well informed of the latest information and thus can take essential decisions at any time.
If these systems were not available, the whole information flow to the UPS internal and external parties would become slow and complex. Other problems are:
Customers would not get the facility to ship, track, and calculate shipping rates as well of making queries of their package online. They had to physically go to the UPS office or make phone calls, emails etc., which would actually make the shipment process long, complex and costly.
UPS customer care service could not make quick response to the customer queries due to lack of latest information.
Business clients had to make lots of paperwork to order a shipment. They had to contact the UPS time to time to know about their shipments, which would take much time than now.
The delivery and pick-up truck drivers would not get useful information in time; thus customers could not get their package in time.
Lots of automated service would become offline. Every job had to be done manually. For doing these, UPS would need a great number of trained employees (to make invoices, to receive phone calls or to reply emails, to communicate with the customers and other external parties etc.) which would cost more money and time.
Management team would suffer due to absence of latest information. They could not take decisions as efficiently they do now.
UPS management and other cost would become high in many areas. To adjust with the increasing cost, UPS had to increase the rate for delivering packages, which would significantly motivate a great number of potential customers to stop doing business with them. In the long run, UPS would lose competitive advantage in the market.
by
nico666 (student)
