UPS and the Utility of Information Systems, Essay Example

1. What external factors affect international operations at UPS?

International deliveries have provided a great amount of growth for UPS but with this increase of business interests.  International Shipments Process or ISPS was developed to take advantage of the international opportunities.  The information collected by the DIADE (delivery information acquisition device) which helps facilitate the transfer of information of the customer, package and delivery data to help facilitate the entire logistics of the delivery.  The ISPS facilitated by the DIADE helped cross the first in a long line of hurdles when it comes to delivery across international borders.  The customs process required a significant more amount of rigor and information to move the packages across country lines.  There are also other critical external factors when dealing with other countries.  The most important is the infrastructure and level of development the country has when it comes to communication and travel. Information is critical as is the actual delivery of the parcel.  UPS must adapt and overcome the multitude of development levels of each country.

2. How do these factors cause UPS to adjust its operations?

UPS must adapt their business processes as if they were moving up and down a scale of service.  This being said UPS would need to leverage off of its existing network and transportation routes as well as the information technology base to support those outlaying countries that do not currently have the level of infrastructure necessary to facilitate the tracking and moving of parcels.  This is remedied by new technological advances in GPS and wireless communication where UPS does not have to depend on the current infrastructure of the deliver-to country but maintain its reliance on internal UPS operations and IT support.  UPS understood that it must create a business model of free and expedient communication in which it responded with a extremely committed plan to lead the way in communication and delivery.

3. What are the inputs, processing, and outputs of UPS’ tracking system.

UPS’s focus falls within three areas.  The first is inputs.  Inputs include package data, customer’s signature, the pick-up and delivery, time stamp data as well as the current tracking location of their delivery personnel.  Another input could be the customs data that would be needed to pass country lines.  The processing of the data is where science and art meet at the data center.  The information gathered from the inputs is collected and managed into precisely packaged deliveries for efficiency and optimized delivery.  The outputs include pickup and delivery times, the location of the driver’s (same as an input) and any updates by the delivery personnel.  These also include reports that are generated by the delivery personnel such as summary reports for management.

4. What technologies are used by UPS? How are these technologies related to UPS’ business model and business objectives?

Some technologies used by UPS include the DIADE and docking stations.  The DIADE is a tablet that collects all of the input data and allows the drivers to dock the DIADE which immediately uploads all of the pertinent information into the UPS data center.  This reduces the need of duplicate efforts.  GPS is also utilized for tracking and managing packages by allowing consistent and up-to-date locations of all their packages and people.  This fits into the business model of streamlining the efforts and only performing value-added tasks to the delivery of the product.  The goal is to provide parcels globally just as they would across state lines.

5. What problems do UPS’s information systems solve?

UPS’s information system solves the issue of lack of communication.  The system allows constant communication between the drivers, the hub and their customers regarding delivery and other pertinent information that is a value for the delivery.  This provides a transparent view into the delivery, input and output data by internal and external users.