Case Study 1 UPS Competes Globally Wit
MANAGEMENT INFORMATION SYSTEM
CASE STUDY 1
Valery Alyssa Rosete-Lao Dr. Milani Austria
MBA 12-613377 Professor
I. TITLE: UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY
II. BRIEF INTRODUCTION
CASE SUMMARY
UPS has created its own information system with Delivery Information Acquisition Device (DIAD) and Web-based Post-Sales Order Management System (OMS) globally by using developed information technology. These special systems help the company to reduce the cost of transaction greatly. By building its efficient order information management system, UPS can make optimal routing strategy, place orders online, and track shipments to meet customer needs. These information systems guarantee the possibility of two-day delivery nationwide as well as lower warehousing and inventory costs for the company.
United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan are two teenagers from Seattle with two bicycles and one phone promised the “best service and lowest rates”. UPS has used this formula successfully for more than 90 years to become the world’s largest ground and air package-distribution company. It is a global enterprise with more than 425,000 employees, 93,000 vehicles, and the world’s ninth largest airlines.
The firm has been able to maintain leadership in small-package delivery services despite stiff competition from FedEx and Airborne Express by investing heavily in advanced information technology.
It all starts with the scannable bar-coded label attached to a package, which contains detailed information about the sender, the destination, and when the package should arrive. Customers can download and print their own labels using special software provided by UPS or by accessing the UPS Website. Before the package is even picked up, information from the "smart" label is transmitted to one ofUPS's computer centres in Mahwah, New Jersey, or Alpharetta, Georgia, and sent to the distribution
CASE STUDY 1
Valery Alyssa Rosete-Lao Dr. Milani Austria
MBA 12-613377 Professor
I. TITLE: UPS COMPETES GLOBALLY WITH INFORMATION TECHNOLOGY
II. BRIEF INTRODUCTION
CASE SUMMARY
UPS has created its own information system with Delivery Information Acquisition Device (DIAD) and Web-based Post-Sales Order Management System (OMS) globally by using developed information technology. These special systems help the company to reduce the cost of transaction greatly. By building its efficient order information management system, UPS can make optimal routing strategy, place orders online, and track shipments to meet customer needs. These information systems guarantee the possibility of two-day delivery nationwide as well as lower warehousing and inventory costs for the company.
United Parcel Service (UPS) started out in 1907 in a closet-sized basement office. Jim Casey and Claude Ryan are two teenagers from Seattle with two bicycles and one phone promised the “best service and lowest rates”. UPS has used this formula successfully for more than 90 years to become the world’s largest ground and air package-distribution company. It is a global enterprise with more than 425,000 employees, 93,000 vehicles, and the world’s ninth largest airlines.
The firm has been able to maintain leadership in small-package delivery services despite stiff competition from FedEx and Airborne Express by investing heavily in advanced information technology.
It all starts with the scannable bar-coded label attached to a package, which contains detailed information about the sender, the destination, and when the package should arrive. Customers can download and print their own labels using special software provided by UPS or by accessing the UPS Website. Before the package is even picked up, information from the "smart" label is transmitted to one ofUPS's computer centres in Mahwah, New Jersey, or Alpharetta, Georgia, and sent to the distribution