UPS Case

• UPS


  United Parcel Service, the world's largest ground and air package-delivery company
• UPS started out in 1907 in a closet-sized basement office with two teenagers, Jim Casey and Claude Ryan, who promised the "best service and lowest rates"
• UPS delivers 18.3 million packages and documents each day in the United States and more than 220 other countries and territories
• UPS has nearly 444,000 employees and 104,398 vehicles, and the world's ninth-largest airline
• UPS has been able to maintain leadership in small-package delivery services despite stiff competition from FedEx and DHL by investing heavily in advanced information technology
• UPS spends more than $1 billion each year to maintain a high level of customer service while keeping costs low and streamlining its overall operations
• Package delivery process


  1. Scannable bar-coded label attached to package

  2. Label information transmitted to UPS computer centers

  3. Dispatchers use routing software to create efficient delivery route

  4. Driver uses handheld computer to access route and capture delivery information

  5. Delivery information transmitted to UPS computer network
• UPS package tracking system

  • Monitors and can reroute packages throughout delivery process
  • Allows customer service representatives and customers to check package status
• UPS website and mobile apps

  • Allow customers to track packages, check delivery routes, calculate shipping rates, determine transit time, print labels, and schedule pickups
• UPS Post Sales Order Management System


  • Manages global service orders and inventory for critical parts fulfillment
  • Enables companies to assess inventory, determine optimal routing, place orders, and track parts
• UPS Supply Chain Solutions


  Division that provides logistics and supply chain services to other companies
• Services provided by UPS Supply Chain Solutions

  • Supply chain design and management
  • Freight forwarding
  • Customs brokerage
  • Mail services
  • Multimodal transportation
  • Financial services
• UPS handles fulfillment and distribution for Plasticard Locktech International (PLI), the world's largest manufacturer of key cards
• PLI realized savings of $200,000 per year by switching to UPS Customs Brokerage Services
• The technology supporting UPS's package tracking system consists of handheld computers, bar code scanners, desktop computers, wired and wireless communications networks, UPS's data center, storage technology, UPS in-house software, and web access software
• The information system solution provides a high level of service with low prices in the face of mounting competition
• Managers and business firms invest in information technology and systems because they provide real economic value to the business
• Information systems are an important instrument for creating value for the firm