In 1907, Jim Casey and Claude Ryan founded American Messenger Company, a delivery and errand service, from a small-spaced basement office. As their service grew, the Seattle teens began making small package deliveries for local stores. The company’s name changed to Merchants Parcel Delivery, and the founders later changed their name to United Parcel Service (UPS) after acquiring Motor Parcel Delivery in Oakland, California. Today, UPS is the world’s largest package delivery corporation with about 18.3 million packages and documents transported per business day throughout 220-plus countries. The company’s operations include 400,000 employees, 110,000 motor vehicles, 650 aircrafts, and more than 2,300 facilities. UPS’s total revenue derives from domestic and international operations, 78% and 22% respectively. Additional income is created through the UPS Supply Chain Solutions division, which allows subscribing companies to outsource services at a fraction of the cost. Under Casey and Ryan’s ownership, UPS has become one of the best services with the lowest rates. Much of their success would not be possible without advanced information systems and the immense amount of money pumped into customer service. With UPS’s slogan as, “We love logistics”, the company has been able to streamline operations and cut costs.
Input, Processing, and Output
UPS’s package tracking system begins with the input of a scannable bar-coded label attached to each package. An input captures or collects raw data within the organization or from its external environment (site). The data embedded in the label contains detailed information about the sender, the destination, and arrival. In addition, the UPS driver uses a handheld computer called a D...
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...fraction of the cost. The amount of success is not only due to Casey’s and Ryan’s hard work, but to the technological advances UPS relies upon for the number one express delivery service.
When a person thinks UPS, he/she thinks delivery service for packages and documents. Yet, individuals do not fully comprehend the amount of information systems that make UPS the company it is today. The Delivery Information Acquisition Device (DIAD) is seen as a signature collector, but not a device that is used to create an optimal delivery route or the tool that tracks cargo. This case study opens the importance of information systems. UPS has a wide array of systems that simplifies processes into a more manageable state to keep the customer informed and the company raking in profits. It all starts with a scannable bar-coded label, but their advancement will never end.
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