UPS – Case Study

• United Parcel Service, set up in 1907 is the world’s largest air and ground
package-distribution company.

• Running successfully for more than 90 years, UPS promises to “deliver the
best service at the lowest rates”.

• UPS has maintained its promise through years and has invested heavily in
IT to make its business more efficient and customer oriented.

• Large Quantum of operations: At present UPS delivers approx. 14.1

million parcels In the US and in more than 200 countries and it also
provides its services to other major companies.

Group I
 UPS’s Mantra: IT Innovation

• Delivery Information Acquisition Device (DIAD):

Information
Delivery
Delivery Inputs transmission to the
main computers tracking

• Custom Built Software that uses operations research and mapping

technology to optimize the way packages are loaded and delivered.
 Outcome: This has helped UPS save travel distance of 100 Million
miles/year.
• Apart from managing its own logistics UPS also provides Supply Chain
Services and other IT tools to its customers at a fraction of what it would
cost to build their own systems.
 For example: UPS provides embedded functions on the CISCO
website, so that they can track their shipments without visiting the
UPS website.

Group I
 IT – Boon for Organizations

• UPS has proved to be one of the top players in the parcel distribution market because:

 Despite facing tough competition from FedEx and Airborne Express, it has held its
position for the past 90 years.
 They used an array of Information Technologies which helped them cut costs and
save time and they ultimately saved 100 million miles of travel distance each year.
 They also used their expertise to provide supply chain management services to
giants like Adidas, America.
 Their services helped Adidas increase efficiency in deliveries through
• On time deliveries
• Increased order accuracy rate
• Improved customer service
• Each organization must carefully design and manage its IT infrastructure so that it has
the set of technology services it needs to be ahead of times.

Group I