United Parcel Service

Andrea Iselin Jordan Balewski Brandon Rodland

Background
United Parcel Service, better known as UPS was founded in 1907 by James E. Casey By 2000 UPS had grown into the worlds largest integrated packaging delivery company Employs 359,000 people in 200 countries Mostly a centralized business Emphasized efficiency in its delivery services

Becoming a Technology Driven Firm

In 1985, UPS offered a single package delivery service at a single price and generated revenues of $8 billion dollars IT unit has around 100 people and a budget of around $50 million dollars In 1986 CEO Oz Nelson pushed the firm to invest heavily in information technology and develop the capability to track packages and offer a wide range of services Between 1986 and 1996 USP invested more then $11 billion dollars in information technology which increased the IT unit to more than 4,000 people by 1997 By 1990 USP had a global network called UPS Net which included three centralized databases: people, customers, packages The centralized IT infrastructure supported deployment of enterprise wide applications Delivery Information Acquisition Device: DIAD By the mid 1990s UPS became one of the first companies to create its own web page Believed internet technologies could tighten the supply chain 80% of UPS revenues were generated by businesses shipping goods to other businesses and individual customers

E-Commerce
Goals in electronic commerce were to enable more business and establish a branded presence in global commerce solutions IT unit built a web front-end onto the existing tracking system that individual companies could integrate into their applications The tracking tool generated benefits, such as reducing call center traffic UPS established alliances with key vendors: Oracel, Peoplesoft, Harbinger, IBM UPS followed 3 principles- the application program interface would be developed by UPS, they would be embedded into the software of the alliance partner, and the service would be branded 2000, UPS had 6 online tools available to customers for downloading UPS Document Exchange allowed firms to transfer large electronic files in a secure, encrypted environment, with full visibility real time tracking and confirmation of delivery By min 2000 more than 50,000 firms had downloaded UPS online tools and integrated them into their shipping or accounting applications

Managing e-Commerce
Divided into two main branches One focuses on alliance building and communication, strategy development and technology The other focuses on ecommerce with many ECAMs (Electronic Commerce Account Managers)

Identifying New Business Opportunities

Joe Pyne created UPS eVentures August 2000 UPS Launched eLogistics which does behind the scenes work for companies

Managing IT for eCommerce

Highly centralized and standardized system working from two cities, Atlanta and Mahwah Example- keep track of shipping habits and provide easiest options Tracking first internet application UPS Tracking

Establishing IT Investment Priorities

IT has almost $1 Billion/year Allocated a Steering Committee with 4 senior executives to determine investment priorities Four key Processes: Customer Relationship management, Customer Information Management, Package Management, and Product management Each team prioritized projects and then tried to develop the most important

Looking Ahead
UPS is still trying to improve their data systems Adding things that could specify where exactly packages were supposed to go MSB Direct

Package Delivery Process

Pick-up Initiation Information capture Pick-up Scheduling Package pick-up Origination center process Origination hub sort Hub consolidation Destination hub sort Destination center process Destination delivery Delivery information capture Transaction process Tracking

Key terms
UPS Tracking- A device that allows both the person shipping a package and the person receiving the package to track their package Ups Rates and Service Selection- A tool that allows a customer to estimate the cost of sending a package Ups Time in Transit- This tool is used to estimate the ground transportation time it will take for a package to arrive at is destination Ups Address Validation- This tool is used to validate the zip code of a package Ups Signature tracking- This tool allows you to obtain a proof of deliver (POD) Ups Shipping- This tool allows Ups to bring web based shipping right to their employees desks, it also allows the company to customize the interphone to meet their business needs

Interesting Facts for 2001

359,000 employees 1,748 operating facilities 152,500 vehicles (Cars, Trucks, Vans) 238 Aircrafts More than 13.6 million packages delivered daily 29.8 billion dollar revenue in 2000