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Package Process at UPS

Driver Process

Driver Process

PreDelivery

PreDelivery

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Package
Delivery
Package
Pick-up

Transp
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Sort

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Packa
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Packa
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Package
Delivery
Package
Pick-up

PostDelivery

PostDelivery

PLD

Package Level Detail

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Package Process at UPS (Cont’d) Package Process Customer focused. specially designed seats in package cars to slide in and out Package flow technologies such as Preload Assist System (PAS) and Dispatch Planning System (DPS) for enhanced dispatch and execution capabilities Constant reviews and analysis of processes to maximize efficiencies and identify opportunities for improvement . core operations process Technology is a key component – enables package information flow Time saving activities leading to cost savings – putting keys on fingers instead of pockets.

but failed to provide gains in productivity due to manual processes  Technology enhancements offer UPS the following value/benefits: New customer-focused services Reduction of miles and fuel consumption Reduction of carbon dioxide emissions Major competitive advantages Improved performance and efficiency .Technology’s Role – Reengineer Processes  UPS’ previous processes were good.

and deliver Capabilities to plan and forecast based on real time data Package flow technologies such as Preload Assist System (PAS) and Dispatch Planning System (DPS) for enhanced dispatch and execution capabilities Route optimization – information on what exactly is in every vehicle. commit times. address details. routes to minimize fuel consumption and miles travelled Hand-held Delivery Information Acquisition Device (DIAD) – GPS units to provide delivery verification. mapping. sort. routing. and in-truck shelf locations of packages .Technology’s Role – Reengineer Processes  Now UPS has changed substantially – has employed technology to redesign processes Feed detail – contains detailed information on package and is used to manage package movement and plan.

Lessons Learned  Understand Organization Culture – to understand employee tolerance levels and better asses scope of process reengineering and technology investments  Maintain Focus – important to focus on activities/projects that will bring most value  Ownership and Accountability is critical  Process improvement must be accompanied by aligned measures  Love your methodology and not your tools – tools are just enablers. processes and frameworks should drive operations  Establish a common language for easy and uniform flow of information .

change or cancel your efforts  70 percent rule – You may only obtain 70 % of the desired functionality. perform due diligence because technology will not fix a bad process . but it is the functionality most critical to the process  Law of Unintended Consequences – Automating bad processes speeds up bad results.Lessons Learned  Process changes spanning functions or business units generally provide most benefits. although they are hardest to execute  Break reengineering efforts into manageable projects  Be prepared to modify.