Each year millions of packages delivered on time by UPS thanks to IT – DTP group 39


UPS or United Parcels Services is the largest shipment and logistics company in the world. UPS’s primary business is the time-definite delivery of packages and documents worldwide. In recent years, UPS has extended its service portfolio to include less than truckload transportation and supply chain services. UPS Professional Services handles a variety of transportation and distribution problems,including distribution network analysis, optimization, expansion, and realignment for improved service levels and costs. Its package lab and consulting services address initial packaging and product design needs, to on-site training and implementation

During the 1990s, United Parcel Service (UPS) grew from a $14 billion package delivery company to a $30 billion global enterprise offering international shipping, logistics, financial, and related services. UPS management adopted a strategy of “enabling global commerce” which combined the physical movement of goods with the movement of information and capital. In the 21st century, the firm is expanding deeper into its customer supply chains.

By 1993, UPS started entering into electronic commerce in many ways, leveraging the group’s unique position as the physical link between buyer and seller, which is regarded as a critical part of their supply chains by customers. They partnered with many of today’s leading software companies like PeopleSoft, iCat, IBM and others.

Information technology did not change their corporate mission, but it fundamentally altered the way they operated the business. Their goal was is to be as prominent in the virtual world as they are in the physical world.

They invested billions in information technology, a fleet of airplanes, and many other improvements across their vast system.

At this moment the smartphone mobile market could still be considered an emerging technology where two markets are converging. The telephone and personal computer are in a way combined and offer the user the possibility to use both functionalities on one device. In the case of UPS parcel service, more of their customers do either own such a smartphone or own a phone with email functionalities. This emerging technology takes an important role in the daily lives of the customers, but also the employees and creates new possibilities for both groups. For example, customers can be alerted by SMS and/or email and informed about their next delivery or pick-up. Also, by way of a mobile application customers would be able to interact with the company more efficiently and in a faster fashion. This comes in handy when people are not at home and want to reschedule the delivery appointment. In such a situation, it would be possibly to easily change the delivery address to the customer’s workplace for example.

There is room for improvement. UPS should concentrate on operations outside the US to diversify its risk. However, the packages you receive on time every time a UPS deliveryman knocks at your door is thanks to a whole IT network and supporting systems.

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One response to “Each year millions of packages delivered on time by UPS thanks to IT – DTP group 39”

  1. 345396kr says :

    This post discussing the integration of IT into the business of UPS is quite interested. Based on recent readings regarding new trends in delivery services I would recommend UPS to further continue innovating its business model through integrating a complementary technical strategy offering same-day delivery.

    Companies such as Amazon, Google and Ebay are offering their mass customers a delivery service, which fits an allocated time slot within the day, based on a consumer’s preference. UPS should therefore focus on implementing such a strategy on a national basis. It could do so by partnering with a growing start-up similar to Tok Tok Tok or Postmate which enable a network of people to become a delivery messenger. Those messengers are authenticated by the firm initially and thus should be relatively safe in terms of service.

    Such a strategy will be similar to the manner in which the majority of Taxi services will might gradually partner with Uber in the future of the transportation industry.

    Thus in order to eliminate the threat of disruption by such firms, UPS could use the growth of such platforms as an opportunity for technical integration into its current strategy. Such an offering would lead UPS to be a market leader in the post services offering such a model and would hopefully lead to positive –word-of-mouth which should increase the impact of sales, or in this case orders that UPS attains.

    Nevertheless, this recommendation suffers from a couple of limits. Firstly, such a controversial business model transformation is risky. Since customers are not familiar with such a strategy, it is possible that the firm will not manage to satisfy exact customer needs, and it will give rise to competitors to fill in the gaps. Secondly, as in the case of Amazon and Google, such a model is not implemented in order to make a profit, but rather to gain information about customers. This would allow for more accurate and efficient resonance marketing in the future and increase customer satisfaction and brand loyalty.

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