Impact of Technology and Management of United Parcel Service Term Paper

Pages: 4 (1140 words)  ·  Bibliography Sources: ≈ 2  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

Information Technology

Technology and Management of United Parcel Service

The purpose of this case study is to review the journal article from University of Maryland College Library's database entitled "Competing with it: The UPS Case" published in Volume 7 Number 2, Journal of American Academy of Business, Cambridge in September 2005

The United Parcel Service, Inc. is a package delivery company, express carrier, package deliverer and global provider of specialized transportation and logistic services and has been in business for more than 90 years expanding from a small delivery service to one that is global. The technological integration with IBM as well as various service applications are presented on the logistics group website at www.e-logistics.ups.comand www.upslogistics.com.UPS developed an it network that is synchronous with global commerce through the coordination of good flow, information flow and the flow of funds all of which is global in nature. The Delivery Information Acquisitions Devices (DIAD) utilized by the UPS Drivers gives the company a competitive advantage. The DIAD is handheld wireless computers that have assisted UPS drivers for approximately 40 years. Delivery information is delivered to the driver via the DIAD and recent additions have added Internet access, extra memory storage, wireless connectivity options and Global Positioning Satellite (GPS) the company's UPS Hubs Technology connects logical and physical networks for the customers of UPS in more than 200 countries and regions across the globe.

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The company's location at WorldPort is a $1.1 billion facility serving as the central processing system in the delivery of global packages and "facilitates international shipments by allowing U.S. Customs to process shipments through query functionality." (Alghalith, 2005) This processing center saved the company approximately $70 million in costs with its packaging screening process which identifies and stops all imports that have a potentiality to be either dangerous or illegal. The core operation of UPS packaging is "Package Level Detail" (PLD) which assigns a smart label to packages that identifies packages moving it from point a to point B. In the allotted timeframe. (Alghalith, 2005)

Term Paper on Impact of Technology and Management of United Parcel Service Assignment

Website tracking of items being shipped is available online at the UPS website. UPS uses what is termed the 4 Es which are "Enhance, Extend, Expand, and Exit" for the business model. Package flow technology was boosted with a $600 million investment geared toward optimization. Further reduction in package cars in the amount of 100 million miles a year will result in a savings of 14 million gallons equaling $600 million annually.

The stated "four key industry trends" are:

Globalization

Increased for time-definite services

Significant advances in technology

Industry consolidation (Alghalith, 2005)

The packaging and delivery industry has experienced rapid expansion over the last twenty years and is stated to be "drive by the integration of world markets, the world markets, the rationalization of corporate supply chains and markets, and the implementation of enterprise software and Internet based Information Technology solutions." Transportation of a time-definite nature has grown from 4% to over 60% since 1977 in the U.S. parcel delivery market. Shipments although becoming smaller are also becoming more frequent.

In terms of competition UPS was forced to update its' network applications for tracking documents and parcels that had been shipped when FedEx in implemented a wireless network application for tracking of their shipments. In 1993 UPS introduced a "nationwide cellular-based wireless data service." (Alghalith, 2005) Technologies that achieved competitive advantage and improved worker productivity was in full swing at this time.

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